Reasons to invest in cloud based Human Resource Management System

The HR department is undoubtedly a key element for any organization. With such a big amount of responsibilities on the shoulders, it is often a very intimidating task for HR people to manage multiple processes, particularly when they have an extending team or organization

A cloud based HRMS is the handiest tool they can have. A good HRMS takes care of diverse HR functionalities as well as achievement, payroll, compensation, succession planning, performance management, attendance and more.

Human errors can always obstruct the way to success wherever HR processes are handled manually. This can be the reason why HR people are selecting automated HR tools over ancient paper-based HR systems. Cloud-based HR tools facilitate to reduce human errors while improving the overall level of efficiency.

What is HR software and its typical features?

It's a technology that compiles all recruitment, manpower and HR management systems into one centralized system, in a bid to boost and transform business operations with accuracy and efficiency. By combining the various aspects of HR and recruitment admin into one place, it permits users to examine a whole summary of the business, improving decision making and streamlining previously long-winded processes.

Popular HR vendors generally provide features that are known over the course of time as important to the success of HR Management – for example, now that HR analytics and ‘big data’ are vital in today’s strategic HR function, you'll see lot of the HR software incorporate this feature

Other common features are most likely to be:                                

Employee Directory :

Centralized location for all employee information that must be kept recorded for audit purposes, to comply the law and company procedures.

Workforce Planning :

This feature permits you to plan shift patterns and employment status, to keep track of who is assigned where and for how long across the organization.

Reporting and Analytics :

It is a critical feature with HR’s strategic direction. At the click of the button, management can generate advanced reports to identify patterns and trends, quickly and briefly.

Performance Evaluation :

Let the user supervise and manage staff performance, track objectives, establish training or development desires and evaluate progress.

Absence Management :

Monitor illness absence and leave departmentally or individually to give management the chance to address areas where unauthorized time off is negatively impacting business operations.

Training and Development :

Makes it straightforward to assign and complete training modules, monitor progress and look at personal development among the organization.

Recruitment and On-boarding :

Manage the complete employee life cycle from one centralized location and ensure important aspects of the process are recorded and ticked off.

Seamless Integration :

HR software needs to be ready to easily integrate with different popular software used within organizations, like Payroll software or Google apps, creating the transition to a HRM system easier to introduce within an organization.

If you still haven’t invested in HRMS software for your business then what are you waiting for? Maybe these 10 reasons to use HRMS software can facilitate to persuade you to form the investment sooner instead of later:

Time saving:

It’s completely true that HR software will save time in several areas of the business. From reduced labour, to a lot of efficient times usage and faster communication between departments (such as HR and Payroll).


HR is no longer simply an admin function, it currently takes a lot of strategic approach to decision making and thus wants the proper tools to be able to gather and analyse information accurately and efficiently to make a strong case or identify problems within the business. Therefore, HR software is necessary for this to be successful.

Reduces risk of duplication and errors:

We have already coated this quite a lot, however it's a top reason why businesses opt to invest in HR software. Of course there are forever going to be risks of duplication and errors no matter what system you've got. But HR software considerably decreases this risk with formulas created that don’t permit you to input file within the wrong format, as an example, or push alerts once a duplication of information has occurred.

Customized permission levels:

With HR software, management have control over who has permission to look at and amend certain information that makes it straightforward to regulate the security of personal data and comply with relevant.

Staff portal/self-service:

Employees will take back some control of their information and be responsible of updating their personal information if it's out of date, or view their role objectives, personal development reviews and participate in training from their own mobile device at any time that suits them. They may even be able to go online and easily communicate with management or alternative team members if the software permits it.

Email or text notifications:

It’s easy to be alerted on the go of any changes to information via email or text notifications. This reduces the possibilities of errors going ignored or management being unaware of changes that have happened till problems arise.

Full electronic history of changes:

Being able to view a full history of changes and therefore the users responsible for logging on and creating those changes makes it easier to spot and fix issues. It additionally holds individuals responsible should something be queried. This is great from an audit perspective once queries are asked and you'll be able to easily communicate with the users concerned to offer any further information.

Cost saving:

Although the initial outlay of prices to purchase new HRMS software, install it across the organization and train staffs and management how to use it, it's widely acknowledged that the return on investment is far better from the amount of time saved, errors reduced and new business and employees acquired.

High security:

A extremely necessary reason for using HRMS software over spreadsheets or paper based systems, having a centralized location for personal information that's encrypted and has customized permission levels suggests that your personal information is safer from getting into the wrong hands, saving your business from tribunal claims and damage to your business reputation.

Flexible working:

The way we tend to work is shifting from the 9-to-5 to a more flexible approach to support employee’s needs. With the range of benefits to the business known with a versatile working pattern, employers will easily implement a versatile operating policy if they're able to access company information from HRMS software outside of the workplace.

Cloud based:

You can say good-bye to mass filing cupboards and you no longer have to worry concerning your pc functions slowing down from an excessive amount of information.


From the reduced errors and increased security features of HRMS software, compliance problems also reduced which means audits are not any longer a dread. And with a full history of information in one centralized location, it’s easy to run reports as required once auditors come to do their job – that’s even longer time saved!

Wrap Up

In today’s demanding work culture, it's extremely necessary to create an engaged workforce. Having reliable HR tools enable managers and HRM to fulfil staffs expectations in terms of encouraging effective performance management, structure alignment and succession planning. Development opportunities and recognition for their contribution provides a sense of confidence to employees. With an end-to-end, cloud HRMS, you'll be able to boost employee performance whereas creating them the best workforce to reckon with.