In today’s technologically advanced world, businesses are constantly looking for ways to streamline their operations and improve efficiency. Many technology innovations are happening in the HR domain also.
SME HR departments all over India are leaving legacy Desktop HR software and migrating to cloud HRMS (Human Resource Management System).
Should you also go along with these progressive SME businesses? What are the benefits?
Let’s jump straight to the point–
Advantages Of Cloud-Based HRMS For Businesses
There are many advantages of cloud-based HR software over desktop HR software.
In SME organisations the HR bandwidth is short, and cloud-based HR software helps through these core features.
Accessibility: Cloud HRMS can be accessed from anywhere, anytime, as long as you have an internet connection. This eliminates the need for employees to be physically present in the office to access HR information, allowing for flexibility and remote work capabilities.
So, travelling managers and field staff can access their attendance, as well as leave and payroll details from wherever they are.
Scalability: Cloud HRMS allows businesses to easily scale up or down their HR operations as per their needs.
When the business grows, a cloud-based system can adapt to your changing requirements without the need for costly hardware upgrades.
With desktop HR software, businesses often face limitations when scaling their HR operations. As the business grows and the number of employees increases, desktop software may struggle to handle the increased workload.
However, with a cloud HRMS, businesses can easily scale their HR operations based on their needs. The cloud infrastructure allows for seamless scalability, ensuring that businesses can handle any increase in HR processes without any disruption. This flexibility enables businesses to adapt to changing demands and grow without constraints.
Cost-efficiency: Migrating to a cloud HRMS eliminates the need for expensive server maintenance and software updates.
With desktop HR software, businesses have to invest in expensive servers, hardware, and regular software updates.
This not only requires a significant upfront investment but also ongoing maintenance costs. On the other hand, with a cloud HRMS, these costs are significantly reduced.
With desktop HR software you get a ‘static’ software.
Which means you get only the software that you installed on a desktop in your organisation. Maybe 1 or 2 more upgrades. Again, needs installations.
But with Cloud HR software the service keeps upgrading every single day.
We keep upgrading our systems as new technology advancements happen. And your HR software is up-to-date all the time.
Infrastructure and software are managed by the cloud provider, freeing businesses from the burden of maintaining and updating your IT infrastructure.
This allows you to allocate your resources on core operations rather than IT maintenance.
Data security: Cloud HRMS providers maintain robust security measures in place to protect sensitive employee data. This includes encrypted connections, regular data backups, and strict access controls, ensuring that your HR information remains secure.
Such protections aren’t available in desktop HR software. Rather, these are vulnerable all the time.
Collaboration and integration: Cloud-based HRMS allows for seamless collaboration and integration with other business systems. This means that HR data can be easily shared with other departments, improving communication and streamlining workflows.
Automation of Manual HR Tasks
One of the significant advantages of a cloud HRMS is the automation of recurring manual tasks. Mundane processes such as paperwork, data entry, and manual calculations are time-consuming.
Why not automate them?
Read More and Take Control of Your HR Management
It’s important to note that implementation of desktop HR is digitalisation. Which means all physical data is converted to computerised data.
But it is not automation!
Cloud HR software helps you automate all HR processes, from recruitment to full and final. The complete employee life cycle will be automated.
This will free up the HR team to focus on strategic HR issues. Like: Better recruiting, onboarding of employees, and employee engagement.
Efficient Employee Data Management
A cloud HRMS simplifies and centralizes employee data management.
All employee information, from personal details to training records and performance evaluations, can be securely stored in one centralized database.
This eliminates the need for manual filing systems and reduces the risk of data loss or duplication. HR professionals can quickly retrieve and update employee data, ensuring that the information is accurate and up to date.
Centralised data management is especially useful when the company is working in multi-locations.
For example, a factory worker’s data is changed and updated by the factory HR. With desktop HR it must be communicated to payroll function. Either by email or some other medium. Otherwise, payroll generation will be faulty.
When managers travel from one work location to another location, attendance proves to be a problem.
Many such challenges can be avoided by migrating to a unified cloud HR software.
Self-Service Portals For Employees
Migrating from a desktop HR software to a cloud-based HRMS offers several benefits for enhancing employee experience.
One of these is the implementation of self-service portals for employees.
With a cloud HRMS, employees have access to their own individual dashboard. And they can update their personal information, submit time-off requests, access their payslips, and engage in internal communication.
This empowers employees by giving them control over their own HR processes. And also reduces the administrative workload for HR personnel, allowing them to focus on more strategic tasks.
Mobile Accessibility And Real-Time Notifications
Another advantage of cloud HRMS is the ability to provide mobile apps to employees and managers.
With desktop HR software, they can access HR information only when they are at their desks.
However, a cloud HRMS allows employees to access the HR system anytime and anywhere through their mobile devices. This ensures that they can stay connected and informed, even when they are on the go.
Communication is also easy, as the cloud HRMS platforms can send real-time notifications to employees regarding important updates, upcoming events, and HR-related deadlines.
This ensures that employees are always in the loop and can quickly respond to any HR-related matters.
Seamless Integration With Other Systems
By adopting a cloud HRMS, businesses can achieve seamless integration with other systems.
When HRMS is integrated with other business systems such as payroll, time and attendance, the need for manual data entry is reduced and also minimises errors.
Such integration ensures consistency and accuracy in HR data, and improves efficiency.
Whether it’s syncing employee information between HR and payroll systems or automating the transfer of attendance data, seamless integration eliminates redundant tasks and improves overall productivity.
Advanced Reporting and Analytics
With a cloud HRMS, businesses can easily generate HR reports and analytics.
While desktop HR software requires manual data extraction and compilation, cloud HRMS allows HR to access pre-built reports and analytics tools.
These tools provide comprehensive insights into various HR metrics such as employee performance, turnover rates, and training effectiveness.
Even compliance reports are available in government-approved formats.
Conclusion:
The benefits of cloud HR software over desktop HR software are too many. Especially in SME businesses who grow continuously, and the HR team is small, cloud HR makes a lot more sense.
Cloud HR saves the capital cost of regular update, maintenance and security costs.
With ESS and mobile apps it gives accessibility and empowers employees.
To put it simply, better accessibility, scalability and power of data analytics make it a better choice.
But cloud HR must be expensive, isn’t it?
That’s a myth. Now with SME HRMS you can receive top-notch cloud HR software at the cost of desktop HR!
Call us now for the switch!
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