Cloud HR Software: A Comprehensive Guide

Priya Naha

Senior Writer

Cloud HR Software: A Comprehensive Guide

Key Takeaways:

  1. Cloud HR software ensures streamlined HR functions with adaptable features, promoting efficiency for remote teams.
  2. Cloud solutions reduce costs, eliminate hardware needs, and simplify compliance management with flexible features.
  3. Cloud HR systems prioritize data security, offering robust features and providing scalability for seamless business growth.

Companies worldwide are adopting digital technologies to maintain flexibility. Your company, too can benefit significantly from the digital transformation. One of the most important aspects of this shift is the switch from traditional HRMS systems to fully parameterized, off-the-shelf AI-driven, cloud HR software solutions.

Looking for HR Software? Check out SoftwareSuggest’s list of the best HR Software solutions.

The size of the HR software market is expected to increase at a CAGR of 10.10% from 2021 to USD 33.57 billion by 2028.

Let’s understand cloud-based HR software better! We’ll also give you the best cloud HR software choices alongside the latest trends in the industry.

What is Cloud HR Software?

Cloud HR software is an online software solution that streamlines the management and automation of various HR functions in organizations. These web-based systems are scalable to adapt to your company’s changing needs and can efficiently operate on a global scale while meeting local demands.

Cloud HR Software By SoftwareSuggest

Cloud-based HR software facilitates easy information integration by combining data into a single software platform. Hosted on servers, these systems offer convenient access at any time. Unlike conventional human resource management systems, cloud-based HRMS solutions are situated on remote servers. Such a facility allows users to connect to them via the internet from any location.

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Pro-tip

When choosing cloud HR software, prioritize user-friendly interfaces and robust customer support. A simple, intuitive platform enhances employee adoption, while responsive support ensures a smooth transition. Ultimately, a user-focused approach maximizes the benefits of cloud HR solutions and contributes to overall organizational efficiency.

What Are The Benefits of Using Cloud HR Software?

A cloud-based HR system safely stores and manages employee-related information in a centralized database. Using cloud-based HR solutions in your business offers multiple benefits. Here are some of them:

The Multiple Advantages of Cloud HR Software By SoftwareSuggest

1. Flexibility

Small and medium-sized businesses (SMEs) benefit greatly from the flexibility that HRIS systems offer because they can be tailored to meet specific needs and business objectives. Cloud-based HR solutions can be accessed from anywhere, making them convenient for teams working remotely.

2. Cost-Efficiency

 HR systems hosted on the cloud eliminate the need for costly hardware setups, maintenance, and updates. These systems typically operate on a subscription basis, which lowers upfront costs and lets businesses modify resources to suit their needs. Rather than depending on an expensive software system, HR teams must choose a service provider that charges less and reap the financial rewards. 

3. Better Compliance

It’s essential to stay up to date on HR and employment rules. HR cloud solutions make this task easier by letting you modify your features and processes. HR rules and guidelines are subject to change as organizations expand and new compliance standards are established. The user-friendly interface of cloud-based HR software packages lets you record labor laws, important HR policies, and guidelines. In addition, you can tailor these systems’ applicability to different employee types based on work type, location, and other demographic criteria.

4. Data Security

Cloud-based HR solutions use strong security features, including encryption, access controls, and regular backups to protect the integrity and confidentiality of employee data. You have complete control over user access, and complex safety measures are in place to keep unauthorized people from accessing private data.

Cloud service providers usually have teams with specific responsibilities for protecting data to provide organization reassurance.

5. Scalability 

Cloud-based HR systems provide scalability, enabling businesses to seamlessly handle growth or downsize. Without causing significant delays, the HR staff can easily add or remove users, storage space, and modules. Such software allows you to adapt to changes in workload or changes in the economy and be able to scale up or down as needed.

How To Choose The Best Cloud HR Software?

Choosing the best cloud-based HR software for your company calls for considering a number of factors. Businesses need to make an informed choice by extensively reviewing multiple of these aspects. Let’s take a look at some of them.

Ways To Choose The Best Cloud HR Software By SoftwareSuggest

1. Types Of Hosting Services

  • Software as a Service (SaaS): It is an online service and requires no user installation or maintenance. SaaS solutions, which are usually subscription-based, include payroll, benefits, and talent management functions.
  • Infrastructure as a Service (IaaS): IaaS services give customers access to servers, storage, and networking that make up the core cloud infrastructure.
  • Platform as a Service (PaaS): PaaS solutions give customers access to a platform for creating, utilizing, and monitoring HR software projects. 

2. Integrations

  •  Data Sharing: Through integrations, HR software can easily exchange data with other programs, like accounting, payroll, and time monitoring. 
  •  Customization: Integrations enable HR software to be customized in accordance with an organization’s unique needs. 
  • Reporting Capabilities: Integrating HR software with systems like finance, enterprise resource planning (ERP), or customer relationship management (CRM) provides a complete picture of the company and its performance. 
  • Workflow Efficiency: HR software can improve processes and overall efficiency by integrating with a variety of applications. 

3. Crucial Features 

  • Time Tracking: A productive way for employees to log overtime and for managers to easily monitor labor costs.
  • Employee Database: A centralized location designed to make it easy to store and retrieve employee data, including personal and employment history.
  • Onboarding: A streamlined process that includes training, compliance checks, and document management for integrating new hires.
  • Automated HR Processes: These include the capacity to automate time-off requests and shift modifications, which saves time and reduces errors.
  • Mobile Access: A smartphone application that manages HR duties and provides instant access to data, such as approving time-off requests and obtaining information from the employee directory.
  • Analytics and Reporting: The ability to create personalized reports and extract information from HR data, like employee attendance and attrition rates.
  • Leave Management: An electronic system designed to monitor and authorize requests for time off while guaranteeing compliance with regulations and company guidelines.

4. Security

  • Multifactor Authentication (MFA): To improve the security of user accounts, look for software that requires multiple kinds of verification, such as a password plus either fingerprint or facial recognition.

Source: Tools4Ever

  • Access Controls: Make sure the software has comprehensive access controls so that only individuals with permission can access sensitive data.
  •  Security Updates and Patches: To fix possible security flaws, choose software that is updated often.
  • Compliance with Industry Regulations: Depending on your business and region, be sure the software you’ve selected conforms with applicable rules, like the General Data Protection Regulation (GDPR) or the Health Insurance Portability and Accountability Act (HIPAA).
  •  Data Encryption: Ensure that all the data stored in the cloud is encrypted to prevent unauthorized access.

5. Customer Support

  • Response Time: The response time of the team must be quick. 
  • Support Availability: Know about the time duration of the support staff. They must provide help 24/7.
  • Self-Service Resources: Know whether there is availability of a knowledge base or user manual.
  • Training and Onboarding: Learn whether the software provider offers training and onboarding support to ensure a smooth transition to the new system.
  • Support Quality: Learn whether the customer support team is helpful and knowledgeable.

Top 5 Picks For Cloud HR Software

You can boost overall effectiveness and streamline your HR processes by using cloud-based HR software. Choosing the best software can be challenging due to the multitude of options. We’ll make it easy for you by shortlisting the top 5 cloud HR systems for you. Let’s take a look.

1. BambooHR

BambooHR

 BambooHR is a cloud HR system that ensures a seamless and integrated experience. It uses a centralized data source to streamline necessary operations, tasks, and integrations. The tool enables electronic signature tracking and collection to streamline employee processes. With BambooHR, you can easily interface with workflows at every stage of the employee lifecycle, ensuring that your business runs efficiently.

Features

  • Application management
  • Calendar management
  • Candidate management
  • Data import/export
  • Data visualization
  • Benefits administration
  • Employee management
  • Employee onboarding
  • Goal setting/tracking
  • Interview management
  • Job application management
  • Payroll reporting
  • Performance review management
  • Recruitment management

Pricing 

  • Please connect with the vendor for pricing.
  • Free trial available.
Pros
  • The tool offers an easy onboarding experience to employees.
  • It is easy to view pay details, including the tax and tax forms.
  • The software offers options to clock in and out from smartphones.
Cons
  • The tool is time-intensive to implement.
  • The customer service needs improvement.

2. Paycor

Paycor

Paycor is a cloud HR solution that gives managers the ability to upgrade and improve every aspect of workforce management. Employee data will always be unified owing to the integrated Human Capital Management (HCM) solution. With the help of Paycor, users can set up recurring personnel schedules, manage labor costs and distribution, and take care of any irregularities like unauthorized time sheets and overtime warnings. 

Features

  • 401(k) tracking
  • Activity tracking
  • Attendance tracking
  • Benefits management
  • Candidate tracking
  • Compensation management
  • Compliance management
  • Job description management
  • Performance management
  • Task scheduling
  • Sick leave tracking
  • W-2 preparation
  • Wage garnishment
  • Timesheet management
  • Workflow management

Pricing

  • Please connect with the vendor for pricing.
  • Free trial available.
Pros
  • It is easy to pick and choose modules according to business requirements.
  • The tool offers up-to-date information to help address issues.
  • The payroll processing is seamless and saves time.
Cons
  • The mobile app needs optimization.
  • The customer response time needs improvement.

3. Deel

Deel

Deel is an all-inclusive HR platform made for global teams, offering full HR management services to teams located anywhere in the globe. Using Deel’s internal back office and locally-owned entities, businesses offer seamless worldwide payroll management. Employees, managers, and leaders can quickly change withdrawal data, view team structures, keep an eye on total payroll expenses, and complete a number of other duties by utilizing Deel’s modern self-service interface.

Features

  • Deduction management
  • Compliance tracking
  • Document management
  • Employee management
  • Engagement tracking
  • Feedback management
  • Immigration management
  • Job management
  • Leave tracking
  • Market data analysis
  • Orientation workflow management
  • Recruitment management
  • Scheduling
  • Sick leave tracking

Pricing

  • Deel HR: free (up to 200 people).
  • EOR: starts at $599/per month.
  • Contractors: starts at $49/ per month.
  • Global payroll: custom pricing.
  • Free trial available
Pros
  • The UI is excellent, and the implementation is fast.
  • The customer support is excellent, with a fast response time.
  • It is easy to withdraw funds and receive payments.
Cons
  • Certain features are limited in European countries.
  • The payment mode is limited to dollars.

4. Sage HR

Sage HR

Sage HR is a cloud-based HR that enables improved workforce management by streamlining HR processes. It is an easy-to-use HR software that offers employees a customizable dashboard with a thorough overview of their goals, tasks, leaves, and feedback to increase productivity. Using Sage HR gives many benefits, including reduced email volume, informed HR decisions made possible by accurate reporting, and more organizational transparency.

Features

  • Assessment management
  • Interview management
  • Calendar management
  • Attendance management
  • Interview scheduling
  • Employee data management
  • Job description management
  • Job requisition
  • Labor forecasting
  • Candidate management
  • Class scheduling

Pricing 

  • Sage HR: £4/per employee/per month.
  • Free trial available.
Pros
  • It is easy to manage leaves, expenses, and staff documents.
  • The tool makes it easy to run reports and gather data fast.
  • It is intuitive for both administrators and users.
Cons
  • Certain things, like emails sent as invites, are difficult to personalize.
  • It is time-consuming to use the project timesheet module.

5. OrangeHRM

OrangeHRM

OrangeHRM is a  pioneer among the top cloud HR software options. With the help of flexible modules covering time and attendance, employee self-service, leave management, recruitment, benefits, and personnel information management, businesses can efficiently manage their workforce. OrangeHRM’s modular design gives users the flexibility to modify the software to meet their specific company needs. It can be accessed either through cloud hosting or on-premise hosting, depending on your requirements. 

Features

  • Applicant tracking
  • Assessment management
  • Candidate management
  • Document management
  • Employee onboarding
  • Expense tracking
  • Leave policy management
  • On-going performance tracking
  • Recruitment management
  • Self-service portal
  • Workflow management

Pricing

  • Please connect with the vendor for pricing.
  • Free trial available.
Pros
  • The tool makes it easy to track the time of employees.
  • The payroll integration offers a seamless experience.
  • It has a clear, simple, and easy-to-use interface.
Cons
  • The platform has security breach issues.
  • The talent management module needs improvisation.

Conclusion 

Cloud-based HR systems are revolutionizing the way businesses manage their workforce. We have made the top 5 choices available to you if you’re looking for efficient HR management software to make your complex processes simpler. Furthermore, the latest developments in cloud HR software offer excellent abilities to address the primary issues that HR professionals face. Adopting these trends helps strategically position any organization to improve its HR operations and sustain a competitive advantage as the workplace experiences constant change.

Frequently Asked Questions

Cloud HR software ensures data security and privacy through encryption, access controls, regular audits, and compliance measures. These safeguards protect sensitive HR information, mitigating risks and ensuring confidentiality.

Cloud HR software systems facilitate remote work and flexible arrangements by centralizing employee data, automating processes, and enabling seamless access from anywhere. This enhances collaboration, efficiency, and adaptability to varying work structures.

Yes, cloud HR software can seamlessly integrate with various business systems, promoting interoperability and ensuring a cohesive digital ecosystem for streamlined data sharing and efficient cross-functional operations.

Cloud HR software facilitates seamless collaboration in organizations by centralizing data, enabling real-time access, and fostering efficient communication. This enhances teamwork, information sharing, and overall collaboration among employees.

Cloud HR software streamlines talent acquisition and recruitment by centralizing candidate data, automating processes, and providing collaborative tools for efficient communication among hiring teams, fostering a more streamlined and effective hiring process.

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