Anyone who’s spent a significant amount of time in the HR field knows exactly how far things have come. While there are those who adhere to conventional methods, the days of paper files and subjective decisions are slowly giving way to computerised processes and objective, data-driven choices. Naturally, switching to a cloud-based HR, data-driven system is a daunting task, meaning many organisations will not be willing to do the switch. However, the benefits of implementing such innovations are clear.
What are Cloud-Based HR Services?
There’s a fundamental difference between on-premise and cloud-based HR programs. Specifically, it boils down to accessibility – a factor that has a marked impact on productivity, efficiency and retention.
Typically, organisations looking to streamline their HR functions through software end up using more than one program. These need to be purchased, pre-installed and maintained individually – often at a significant cost. This also means they can only be accessed in locations where said software is installed.
Cloud-based services, on the other hand, don’t require any software. These systems are accessible via the Internet from any location. To put it simply, it’s comparable to saving files in Google Documents as opposed to a hard drive.
Benefits of Cloud-Based HR Services
While using on-premise software is an excellent measure, we’ve already established the general advantage of cloud-based programs. Consequently, this affects several key sub-areas that are critical for organizational success.
When it comes to the day-to-day HR functions, time and money are infinitely valuable.
As we stated earlier, on-premise HR software often requires multiple programs for different functions, with maintenance and cost affecting profit and efficiency. That being said, internal system issues inevitably result in service disruption, leading to backlogs. Further adding to the issue is the potential cost in terms of lost productivity and labor required to fix said problems.
The cloud-based option minimizes the risk of malfunction and the expense of repair. Since the tools are exclusively online, Internet disruption is the only potential “hiccup” – something far easier to repair. In terms of savings, using a cloud requires no additional purchases.
Perhaps the biggest benefit to efficiency, however, is that using the cloud makes it easy to integrate multiple functions, which is something that on-premise software doesn’t always allow. Users can share, change, manage and monitor information in real-time across multiple departments, all using a single system and login.
It doesn’t take an expert to understand the importance of productivity – another strong argument for cloud programs.
Again, we’ve covered how limiting software can be when it comes to accessibility; it’s only available in a host location. The cloud-based model, however, is the polar opposite. Being available through the Internet gives cloud programs a logistical advantage. They’re even accessible on mobile devices, such as tablets and smartphones, allowing individuals to work outside of the office. The convenience is especially handy if an employee is ill or away for any other reason. It also opens the door to remote workers. Today, mobile apps can do the same things as any PC.
HR managers also find that using a cloud makes their lives easier. They can easily delegate and monitor different tasks. It allows for fast communication between employees and other departments, ultimately allowing projects to be completed more quickly.
Improving Recruitment and Retention
Hiring and retaining top talent is always a priority. Up until recently, however, choosing and keeping staff relied heavily on human evaluation during an interview, both during the recruiting process and periodical evaluations. Try as we might, even the best of us can have trouble remaining objective, often falling victim to the “halo effect,” to name one. Ultimately, organizations recruit the wrong people, who inevitably choose to leave or are forced to do so.
In this case, however, the cloud is simply a means to an end. It allows for the use of an innovative method known as Data Driven HR. Simply put, it computerizes key functions relating to recruitment, evaluation and retention. This removes human interference and the prejudices that come with it.
Deep learning algorithms, for instance, allow recruiters to sift through thousands of resumes without having to lift a finger. These programs notice patterns and keywords, for instance, that not only determine if a candidate meets the position’s qualifications, but also predict the likelihood that this individual will be successful and remain with the company.
While data-driven HR is a strong predictor of employee success, it works just as well in the opposite direction. Companies that see frequent turnover – or are simply interested in reducing it – want to address it wherever possible. Known as “predictive analytics,” this concept looks at employees who quit and checks for any common patterns or reasons.
Overall, cloud-based programs provide tremendous advantages over on-premise options. In short, they maximize key areas, like efficiency, productivity and retention, while minimizing potential problems and expenses. In the end, it should be interesting to see how HR evolves as more organizations adopt a cloud-based approach.
The Obvious Choice
As businesses, we want to be as efficient as possible at the lowest price. Cloud-based HR programs are an excellent way to achieve this goal. On-premise used to be the newest tool to gain an advantage in this competitive world, but tools change and improve over time. Cloud is the next phase in HR success – and no organization should miss its chance to use it. In short, make the switch and see the difference.