How to Select the Best Cloud HR Software for Your Business
Information technology is slowly turning out to be part and parcel of the business community. With the ever-changing market dynamics, companies are slowly adopting software that can ease their operation as well as boost their productivity. Having software is not enough. For it to be effective, it needs to be up to date as well as able to store and interpreted data.
With the disruptive technology taking shape in most organizations, HR department has not been left out either. To remain relevant and keep up with the pace, HR managers have also embraced the use of software in their department. Bearing in mind that some organizations are too small to have a fully fledged IT department, a cloud-based system has come to their rescue. This system is also being used by large companies with global presence.
Cloud-based software, also known as software as a service (Saas) has come to revolutionize the ease of doing business. Companies that have adopted its use can attest its benefits. HR departments are able to acquire up to date HR software that meets their day to day need without involving IT department. IT team are able to cut cost on software and hardware maintenance as the system does not require any investment on hardware for its operation. On the other hand, managers and employees can easily access the information they need from anywhere regardless of time. All they need is access to internet either from a standard browser or a mobile app.
What are Cloud HR Software?
You must be wondering where the name cloud is coming from. Cloud is a metaphor used to refer to the internet. Cloud computing can be referred to as a process of storing and accessing data and programs over the internet as opposed to using of your computer hard drive.
Cloud Hr is a cloud-based solution that enables business owners, departmental managers, and HR managers manage employees’ affairs seamlessly. It helps the organizations automate processes such as employee documentation, performance appraisal, cost control, job attendance, leave management, and payroll update.
The data is normally stored in software that is hosted by a licensed company in a centralized data centre. Thus there is no need of investing in servers to store the data. The software provider is responsible for the smooth running of the system. Vendors ensure all the resources required for a smooth operation such as software, hardware, security features, and support are in place. As a consumer, you only pay a monthly subscription fee to facilitate the operation of the software.
Cloud base software guarantees you an up to date system that does not require regular updates and upgrading from your end. All this is taken care of by the vendor. Customers enjoy use of software with the latest functionality with no added cost. As a consumer, you only pay a monthly subscription fee to the vendor and everything else is taken care of.
What motivates companies to adopt cloud-based technology? Ability to adapt to the software innovation easily is one of the trends that are driving the organization into the use of the system. The companies become more efficient as most of the activities are automated which in turn shortens the cycle of operation and boosts the quality of output. Lowers cost of operation since the number of staff required is minimal as opposed to having on-premise software which requires human capital and other IT resources to operate. The fact that companies are able to reduce their dependency on IT for operation not forgetting employees are able to access the system from anywhere with ease also tends to motivate companies to adopt the new trend.
What are the benefits Cloud HR Software?
Cloud HR system is not meant for big companies only. There are different modules and features that have been designed even for the small companies. This makes the system easy to use by small companies while at the same flexible for bigger companies.
If you have been handling your HR operations manually, you may be a bit skeptical adopting a software system. Take a closer look at some of the benefits.
- Low cost of installation: Companies need not invest in IT infrastructures and servers while setting up cloud-based software. You also don’t need an IT team to run the system. The vendor provides all the resources that are required to run the system. Since the system is hosted in a central place, all you need to pay is a monthly subscription to use the service. You can even opt to pay an annual fee instead of monthly payments.
- Better use of time and resources: Cloud-based software doesn’t require personnel to be involved in the day to day operation of the system. The vendor is responsible for the operation of the system thus freeing company staff from time-consuming tasks. As such IT team, as well as HR officers, can be engaged in other meaningful activities of the company.
For small companies, they need not worry about the cost of hiring IT specialist as this is taken care of by the vendor. Data integrity and security is also guaranteed as manual data entry is minimized. In situations where key staffs leave the organization, there is no worry of sabotage or interference with workflow as they have no control over the system.
- It is easy to set up: Cloud-based products don’t require any installation of hardware or software. As such the procurement process is much faster as there is no third party involved in the purchase.
Since the program is designed from the onset by the vendor, implementation of the system is much easier. The vendor can also help with data migration as well as advice on best way to set your program.
How to Select the Best Cloud HR Software for Your Business?
Seeking for a cloud-based HR system for the first time can be challenging. There is a multitude of options available which are likely to overwhelm in your selection process. The right HRIS system for your business will depend on the type of your organization, your global footprint, and the kind of employees whether they are full time, part time or casual workers. Here is a guide on how to go about the selection process.
- Security features: HR data is very sensitive and such security is paramount. The system should have controls on who accesses what information and who authorizes any changes in the system. The system should have different user rights carefully monitored. The reporting tools should be fully secured to ensure no one bypasses the security or access classified. It should also have a recognised and established data centre.
- Functionality: Go for a system that has distinctive features for your business requirement. What kind of data do you have and what functionalities are you looking for. Do you want a core HR function, talent performance, payroll system, or talent management? The more specs the higher the cost. Only pay for what you require to cut cost.
- Scope: Is the system offering all in one solution or is based on modules. Depending on your area of focus, choose a system that will be able to meet your needs. Be sure to check it’s scalability in future. With time, you may need to upgrade your system depending on the growth of the business both locally and globally.
- Culture Fit: You need to choose a vendor that you can work with. Remember his team will be involved with the frequent update of the system. It is important to be sure vendor’s team can work with yours harmoniously and how good their services are. Also, find out the kind of industries they work with; some providers are best suited for particular industries.
Have a one on one meeting with the vendor and if possible get an opinion from a third party preferably their past clients.
- Cost: Price of the system varies with vendors and functionality involved. It’s advisable to carry out a research and benchmark with different vendors in the market so as to settle for the most favourable cost.
Does the cost of the license include the cost of regular updates and what is covered within the given price? Examine if this will work for your business or not.
- Technology: Cloud software is a technology-based system. You need to examine how easily this system can be integrated with the existing system. Will you be able to link it to financial data, marketing data for reporting? Does the system support how you control access and security across all your business? It would be a good idea to involve your technology team during evaluation so that they can confirm the above concerns.
- Implementation: After the purchase of the system, you may need a system integrator (SI) to set up and configure the system. You need to choose the best SI to assist with the integration. Most cloud HR system comes with self-service functionality where employees are able to update their personal information. This means you have to schedule training for your workforce if you are to have a smooth operation and adaptability.
- Easy to train: Staffs that need the system should be able to use and reap maximum benefit from it. Is it sustainable in the long run? You need a system that will not disrupt the normal operation of the business. It is good to communicate the importance of the new system in the organization so as to reduce resistance from your employees.
Here are the trending and the top rated HR Cloud Software for you to consider in your selection process: