Why cloud-based HR software is taking the world by storm

Cloud HR software is taking the world by storm because it frees companies from the enterprise upgrade cycle: many large companies are still running HR systems that have quietly fallen behind, technology bought years ago that hasn't kept pace with what modern cloud tools now offer as standard. The cloud offers anytime access, no upfront investment, near-zero downtime, and world-class security.

Quick Summary

• The trigger: aging enterprise software; many large-company HR systems have quietly fallen behind what modern cloud tools now offer.
• Cloud access ends the upgrade cycle: the vendor handles updates, with anytime-anywhere access and no upfront investment.
• Modern, mobile-first UI lets employees view and apply for leave, check attendance and payslips, and manage income tax plans.
• Integrated solutions and analytics replace scattered point applications, with vendors competing on insight depth.
• Low switching costs and the war for talent make cloud HR both easy to adopt and strategically critical.
• Practical wins: keyword-based recruitment, real-time evaluation, workflow automation, centralized data, accurate statutory reports, and CXO dashboards.

A significant proportion of companies bought into this category of software around this time. The result? A lot of large companies are still running HR systems that were cutting-edge once but haven't kept pace since, the kind of gap that opens up naturally as cloud tools keep adding capabilities that older, on-premise systems simply can't match. The time, then, is naturally ripe for companies to shop around for alternate HR solutions.

Why is easy access to cloud-based solutions a game changer?

Cloud software presents an affordable yet effective solution to the HR problem: nirvana from upgrading systems every couple of years, since the vendor handles it, plus anytime-anywhere access, no upfront investments, near-zero downtime, and world-class data security.

Today, cloud software presents an affordable yet effective solution to the HR problem. This means nirvana from the cycle of having to upgrade human resource management systems every couple of years. The vendor takes care of this for you. Being on the cloud also has several other benefits, anytime, anywhere access, no upfront investments, near-zero downtime, world-class data security and more.

What makes cloud HR software's UI more user-friendly?

Modern websites raised the bar for intuitive, engaging interfaces, and cloud software meets it. Mobile app features let employees view and apply for leave, check attendance and payslips, and manage income tax plans on their phones.

What with the intuitiveness, appeal and ease of use that websites offer today, the need for an engaging user interface has arisen. This requirement is being fulfilled by cloud software. Today, cloud-based HR solutions are also seen to offer mobile app-based features that enable employees. These include the facility to view and apply for leaves, view one's attendance and payslips, and to manage one's income tax plans.

Why do companies need an integrated solution with analytics?

Companies juggling separate applications for performance, recruitment, and expenses want one streamlined system where information flows between modules without redundant work. On top of that, vendors now compete on the depth and effectiveness of integrated analytics.

Long story short, companies today have several applications in place to deal with the different aspects of HR such as performance, recruitment and expenses, and feel the need for an integrated, streamlined solution. This will ensure that all information is stored in one location and that it flows seamlessly from one module into another, thus eliminating redundant work. To add to the mix, HR software vendors have acquired others in large numbers.

The analytics that HR solutions offer vary from one vendor to the next. This has given rise, in an era of commodification of most aspects of software, to competition over the depth and effectiveness of analytics provided. Integrated analytics is seeing much demand these days, with its ability to add insight and value at every turn and is seeing heavy investment into it.

How do low switching costs and the war for talent drive adoption?

On-premise enterprise software is heavily customized by IT and hard to exit, while cloud software eases vendor switching. Meanwhile, talent has become the most critical competitive advantage, and cloud HR enables the strategic decisions on recruitment and performance that the war for talent demands.

Enterprise software is highly customized by IT and is difficult to opt out of. Cloud-based software, on the other hand, eases switching costs when moving from one vendor to another.

The talent they have access to is the most critical competitive advantage that companies enjoy today. By allowing more strategic decision-making around the various HR functions, such as recruitment and performance, cloud HR software is well suited to the need of the hour.

What day-to-day HR work does cloud software transform?

Six operational wins: automatic CV keyword sorting in recruitment, fast metric-based employee evaluation, automated daily workflows, centralized data that kills redundant work, accurate and timely statutory reports, and HR and CXO dashboards that power the appraisal process.

Easy recruitment process

Today, cloud based HR software has eliminated the need to manually sort CVs. They can check for the necessary keywords on job portals and other databases and sort candidates automatically. Various HR software solutions also aid in tracking candidates, posting job descriptions and openings, executing promotions and much more.

Effective employee evaluation

To ensure that employees are performing at the desired level, it is important to put in place some metrics to evaluate performance. An HRMS system can capture data around this quickly and present them to stakeholders in the required format so as to help identify areas of improvement and take whatever action is needed.

Automation of daily workflows

A detailed workflow that an HR software system is capable of creating and supervising ensures that fewer resources are used and that employee hours are put to better use.

Centralized data

Spread out and multiple data sources in this regard can result in much redundant work that can add to the effort required, not to mention unhappy employees in case of errors. An HR management system that captures and stores all important information in a single, centralized location ensures that these problems are resolved.

Accurate statutory reports

Rolling out accurate statutory reports for compliance purposes can mean a lot in terms of investment of time and effort. Moreover, these have to be created and submitted in a timely manner, if the company is to not face fines from the concerned authorities. Cloud based HR software is capable of creating these reports accurately and in the required format.

Aids in the appraisal process

HR and CXO dashboards are capable of capturing and showing information graphically regarding the efficiency, productivity and other metrics of employees.

Put together, these are the reasons the storm hasn't passed: every one of these functions runs on a full-suite HRMS like greytHR, where payroll, leave, attendance, and compliance share one database and the vendor keeps everything current.

See how greytHR brings payroll, leave, attendance, and compliance together in one place. Explore greytHR, the full-suite HRMS, or start a free trial to run your entire people operations on a single platform.

greytHR is India's leading HR and payroll platform, offering 50+ Hire-to-Retire tools that automate recruiting, onboarding, payroll, attendance, leave, and compliance. Trusted by 34,000+ businesses, it manages over 3.2 million employees across 25+ countries.

Related reading: greytHR HR software | 12 ways cloud HR software changed how HR works | 5 reasons to move to cloud-based payroll software

Frequently Asked Questions

Why is cloud HR software so popular?

It ends the enterprise upgrade cycle (the vendor updates it), and adds anytime-anywhere access, no upfront investment, near-zero downtime, and world-class data security.

What can employees do on cloud HR mobile apps?

View and apply for leave, check attendance and payslips, and manage income tax plans from their phones.

How does cloud HR software help recruitment?

It scans job portals and databases for keywords, sorts candidates automatically, tracks applicants, and posts job descriptions.

Is switching cloud HR vendors easier than on-premise?

Yes. On-premise systems are heavily IT-customized and hard to exit; cloud software keeps switching costs low.

How does cloud HR software support compliance?

It generates accurate statutory reports in the required format on time, protecting the company from fines.