Should You Consider Migrating HRMS On Cloud For Your Business?

August 09, 2017

Should You Consider Migrating HRMS On Cloud For Your Business?

HRMS on cloud addresses the process of hiring, retaining and developing talent which is the biggest challenge that is faced by the HR departments of any organization today. Every growing business shares one thing in common, a desire to be quicker and efficient about its human resource management system. Relying on conventional systems that struggle to cope up with demands of 21st-century workforce can slow down a business’s process and hold back growth. As per PWC’s 17th Annual Global CEO Survey, 77% of respondents are concerned about shortage in skilled workforce which will impair their company’s growth

Cloud computing for HRMS is gaining the critical attention of HR leaders to adapt tools as the business evolves and meet the requirements of growing organizations. Cloud HRMS addresses the challenges of hosting multiple HRMS applications and consolidates these systems to improve the efficiency of the HR department. HRMS solutions have proven to bring in process efficiencies, improve visibility, time and cost saving and accelerate talent growth. Following are the benefits that organizations can receive by managing their HRMS on cloud.




There are multiple applications that perform various tasks like performance management information, employee personal details, pay scales and associated information, etc. Managing all such employee related tasks through one common system facilitates faster access to information and easy decision making. It helps the departments to aggregate multiple reports and metrics which can increase business efficiency.


Such systems allow management teams to access and use analytics to identify talent trends and skill gaps while providing insights to maximize opportunities. Since currently most of these applications are fragmented, HR teams have to plug gaps using manual workflows and processes.



Traditional systems are not well equipped to deal with multinational operations or integrate with different payroll systems. Changes within employee locations, their designations or their information if not updated can lead to loss of valuable credibility. Additionally, multinational companies need to adhere to local policies, laws and other compliance matters. To drive business operations seamlessly, they require a system which can handle such information. Improper management of such information results in a bureaucratic environment and decreased efficiency. If such processes are managed traditionally, metrics related to the entire company are challenging to gather and time-consuming.



Modern working environment involves speed, efficiency and electronic data for management. Additionally, social engagement has become imperative for today’s workforce and HR software that cannot keep pace with such change appear as traditional organizations. HRMS systems should allow employees access to use the platform at their disposal for certain tasks such as a change in information, request for leaves or other accruals. The reporting managers can retain the approval rights; however, a speedy process allows less amount of time invested in unproductive tasks. Conventional methods are prone to errors and consume longer duration for changes and approvals.



A cloud based HR software is vital for cross border compliances. Such systems help organizations to accommodate the expansion and scale easily. Such system should include secured systems to protect confidential information about employees including their address, bank details, medical conditions, etc. If such information is stored in spreadsheets, it is vulnerable to being accessed in inappropriate ways either accidentally or on purpose. The commercial vulnerability is of prime importance and must be securely held in an HR system.



When organizations grow with mergers or acquisitions, and integrated HRMS is a must application to maximize the benefit. Such platforms allow to seamlessly integrate without investing time and money to integrate the information. Without such systems, it becomes a cumbersome process for organizations to uncover complexities within the organizations. Conventional HR processes are bad for the entire business since they are not fit for the purpose. Manual systems can lead to staff frustration to fix various discrepancies across locations. An unsuitable human resource system can cause negative effects on the bottom line of the business.



The hardest part of success for implementing HRMS is process design and change management. However, with the new HRMS on cloud models, the iterative configuration and deployment are much quicker than the traditional on-premise HR software. Organizations can access tried and tested processes and remove unnecessary customized systems which enable a shorter and value-added implementation. Cloud based systems can remain stable, upgradable and maintainable. With cloud based solutions, companies can be more accurate with their processes from payroll to attendance; everything can be handled reliably. HRMS on the cloud also provides an accurate picture to senior management on the performance of the staff and areas of improvements.


HRMS on cloud provides multiple benefits to organizations including low initial cost, reduced risk in business operations, quick implementation of timelines, minimal manpower requirements and underlying security to the organization’s personnel data. Human resource managers can manage the entire lifecycle of employees in a simple, flexible and insightful manner. Though while cloud based systems offer a variety of benefits, there are business processes and foundational issues that must be considered in making a move.


Before concluding to adapt HRMS on the cloud, organizations should realize the full value of cloud based solutions. HR departments would lose the opportunity of such systems if they were to move their existing process to an online system. Such systems add value by standardizing the HR process with global standards while reducing the cost of infrastructure, staff, and maintenance. It allows HR departments to run more streamlined operations and efficient business. Such systems must be aligned to your business requirements and should have the ability to adopt modern HR best practices.


There is a common misconception that the best solutions offer maximum features. To conclude, one should evaluate which vendors can provide a secure system within the organizations budget and assist in meeting the strategic goals of the HR departments. Employees now expect a modern experience from workplaces and can seamlessly interact and collaborate with their peers. The best HRMS on cloud applications have become strategic tools for managing talent and are adaptable as per evolving needs of growing business.


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August 09, 2017

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