Global HR 7 min

Advantages of HR cloud software in the workplace

Written by Barbara Matthews
May 27, 2024
Barbara Matthews

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Your HR team takes on a bigger workload as your company grows. With remote and hybrid work arrangements, traditional HR systems just aren’t cutting it anymore.

Cloud-based human resources software is your solution to manage global teams. In this article, we'll explore the numerous benefits of moving your HR operations to the cloud. We'll also suggest features to look for when shopping for a cloud HR platform.

What is cloud-based HR software?

HR cloud software is an HR platform that you can access from anywhere. You don’t manage the physical storage or server space because the company's provider maintains it for its users.

Cloud-based HR programs tend to be categorized as Software-as-a-Service (SaaS). So, as a customer, you subscribe to the software instead of purchasing it outright.

These platforms give your HR team access to the software from anywhere to handle HR tasks, manage employee benefits, and more. Depending on the software, payroll team members can also run global payroll and related tasks from the software. Plus, employees can often self-serve to manage their information, pay, and benefits.

However, HR software doesn’t replace the need for humans and human decision-making, nor does it guarantee better outcomes. It’s simply a tool — not a team member. HR software makes your HR team more productive and gives them more space to focus on higher-level matters.

HR software can’t operate in a vacuum, either. Ideally, you integrate it with other business software programs to consolidate all your tools.

What should you look for when shopping for cloud-based HR software?

There are many cloud-based HR software options. So, you can get lost if you don’t know what to look for.

Narrow your search with the following criteria:

person reviewing hr cloud software

Customizability

Every organization is different. If possible, find software that fits your industry and lets you tailor its features to your needs.

For example, good cloud-based HR systems let you build custom workflows and assign team members to specific roles within the software.

HR systems can also let you customize dashboards and reporting to give you the data you need when you need it. Ultimately, HR software should work for your team, not the other way around.

Integrations

Integrations with other tools allow for data exchange or data flow between platforms. For example, if your HR software integrates with a payroll platform, you can process payroll compliantly based on employee location.

Software solutions can come with pre-built integrations or connect via Zapier to other platforms. Some also offer application programming interfaces for custom integrations.

Plans and pricing

Platforms vary in terms of pricing and plan structures. Some charge flat monthly fees. Others may have a lower fee but also charge per team member. 

Weigh each platform’s price against the potential time and cost savings it can provide you. Look for pricing transparency and watch for hidden fees. See if any of them offer free trials so you can test them out prior to investing in a platform.

Customer support

Customer support helps you adapt to new software, troubleshoot issues, and answer questions. It should be easy to access. Look for platforms that offer phone, live chat, and email support.

Good cloud platforms also offer self-serve support, like a knowledge base with help articles.

The 9 advantages of HR cloud software

Cloud HR software offers many conveniences:

Circle chart showing the benefits of HR cloud software

1. Access from anywhere

Accessibility is a major benefit of cloud HR software, as team members can access the platform from anywhere. Check if your HR solution has a mobile app option for employees on the go.

Cloud HR software also syncs data so team members can work with real-time information. It’s challenging to manage a distributed team without a cloud HR software that supports teams across locations. Cloud HR software also keeps information up to date, so your employees can access accurate HR information anytime.

2. Scalability and cost-efficiency

Cloud-based solutions for HR should scale with your company, with no reason to add infrastructure.

Infographic on cloud HR’s scalability

With scalable HR cloud software, you only pay for what you need, helping you optimize resource allocation. Scalable software helps you budget HR expenses and expand your business without blockers.

3. Customizability

A good HR cloud solution should be customizable and user-friendly, tailoring to your unique HR needs. Ideally, you should be able to customize HR features like:

  • Workflows

  • Reports

  • Fields

  • Dashboards

Some cloud-based HR solutions offer modules and add-ons within and outside of HR, such as payroll and benefits management. These let you customize a more comprehensive hub for your business needs.

You can tailor your software to the needs of your team, organization, and industry, enhancing the user experience for everyone in your organization.

Still, the level of customizability can differ between platforms. It’s one of the most important criteria to evaluate while looking for software solutions.

4. Employee self-service capabilities

Employee self-service (ESS) lets employees access and manage their employment details. Employees can keep track of their data, including the following:

  • Personal information

  • Time tracking

  • Leave

  • Benefits enrollment and management

Employees can feel more comfortable accurately managing their own data without interference from someone else. ESS functions also free HR professionals from manual work, helping them focus on strategic HR matters.

5. Easier hiring and onboarding

Good hiring and onboarding starts the employer-employee relationship on the right foot and strengthens retention. They also get employees quickly up to speed.

Cloud-based HR systems make onboarding easier through customizable onboarding checklists and automated workflows. Remote Talent also makes hiring easy, by helping you find top global talent in one place.

6. Real-time employee performance assessments

Real-time assessments are a common feature in top cloud-based HR software solutions. You get visibility on employee productivity, strengths, and areas for improvement on the fly for more efficient employee development. Plus, you can analyze goals and progress at the team and employee levels.

Feedback keeps your employees engaged. They feel like the company is investing in their development and success — which also helps with employee retention.

7. Automatic compliance

HR cloud software regularly updates to comply with changing tax, payroll, and labor laws and regulations. It also provides a detailed paper trail for payroll audits. Automatic compliance features take one of the most time-consuming administrative tasks off your team’s plate and help you avoid legal trouble.

8. Strong security

When you subscribe to cloud HR software, the cloud service provider also bears responsibility for data security. They will monitor threats and help you keep your software and data safe. This takes some burden off your IT team.

A few data security features to look for include:

  • Encryption

  • Secure data centers

  • Multi-factor authentication

  • Access controls

9. Regular updates

There’s no need to update your cloud HR software manually or purchase a new version. The cloud provider constantly develops new features and upgrades existing ones to stay competitive in the SaaS market. They also update the interface and security features to protect your system against the cyber threats

The provider should aim for little to no downtime through all this so that you can keep running HR smoothly. 

Using HR cloud software for global remote teams

If you’re going global with your workforce, your HR cloud software needs to support international hiring and compliance. This is how a cloud-based platform like Remote can support remote, global, and distributed teams.

Local tax reporting

Tax laws vary, and they change. HR Management software like Remote keeps up with regulation changes, so your HR and payroll team doesn't have to.

Easy onboarding from anywhere

Onboarding can be difficult for remote teams spanning distance and timezones. HR cloud software makes onboarding simple with self-serve checklists, self-scheduled training, and a consolidated database.

It’s time to move to the cloud

The advantages of working in the cloud are clear. HR cloud software frees up your HR team to work on larger strategy problems while combining your HR process all in one place.

If you have a flexible global team, consider an HR Management platform like Remote. Remote helps you juggle the varying tax codes and labor laws to keep you compliant with local laws, no matter where your team member is based.

Chat with Remote today to manage your workforce from anywhere easy.

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