The modern human resource executive is now as technology savvy as ever. The use of analytics, data mining, prediction, and the cloud has become an indispensable part of managing people. Particularly with cloud technology, human resource management has gone leaps and bounds.
According to the most recent KPMG Global HR Transformation Survey, 42% of companies intend to migrate from traditional HR systems to the cloud. The shift to cloud HRMS is expected as the cloud provides for a seamless and real-time exchange of data and information, a critical need for every human resource department. But more benefits can be gained with the use of HR systems based in the cloud.
More efficient and effective
The cloud offers pure efficiency, cutting massive amounts of transactional and maintenance tasks in just a few steps. As such, the operational management of HR tasks are more effective. An HRMS operating in the cloud ensures a self-servicing capability for company personnel. It also improves process and workflow management, as well as access to management data and information.
For a traditional HRMS, implementation is significantly slower. It is also required that your company has the right hardware and the right IT people to implement and maintain HR databases and systems processes. Cloud HRMS solves the lack of hardware and IT personnel. Installing and infusing future systems updates are now way faster and less intrusive as before.
Cloud systems are cheaper. Since no hardware and additional personnel to maintain them is needed, it saves bucks. As with purchasing the service, the ‘pay as you go’ subscription model of payment is conveniently affordable. A company no longer needs to shell out initial investment fees and software license fees. In accounting terms, the subscription model falls under operational expenditures while traditional HRMS is under capital costs.