The HR industry has been through a series of technological revolutions over the past decade. Automated payroll has replaced cash wages. Spreadsheets have taken the place of paper sheets. And cloud HR solutions have replaced recurring, time-consuming HR procedures.
In this post, we discuss why every business, regardless of its type, size, and industry, should use cloud HR software.
1. Streamlined Recruiting
Recruitment and onboarding of new employees are one of the core functions of the HR department. However, the recruitment process can be tedious. It’s data-heavy and requires a bunch of repetitive, time-consuming, and resource-intensive tasks. These include scanning resumes, scheduling interviews, sending emails to candidates, and more.
While conducting the actual interview is something that requires human interaction, the other tasks can be automated. Here’s where a cloud-based HR solution can help.
The best HR software helps you automate the pre-interview process, including resume scanning, applicant tracking, screening, and scheduling. This enables you to save time so that you can focus on the essential task of conducting the interview.
2. Improved HR Efficiency
As discussed, HR operations include numerous admin tasks. These tasks decrease your HR department’s productivity and don’t add any real value to your organization. Ask yourself this. Why should your HR team manage the payroll manually if you can entirely automate it?
The best payroll software solution increases your HR department’s operational efficiency by automating administrative activities like payroll, attendance management, timesheets, and more.
3. Strengthen Your Employer Brand
We live in a business-driven world. New companies come to life every day. This gives job applicants various options to choose from.
If you’re a startup or small business, you’ll need a powerful team to help you grow and thrive. But unless you’re a Google or Microsoft, you’ll have a hard time making candidates interested in working at your company.
So, how can you stand out from other companies? Establishing and strengthening your employer brand is a great way to do so. When you have a strong employer brand, job applicants will come to you instead of you sending them offers.
If you want to develop an engaging employer brand, a cloud HR system can help. It integrates with communication channels like social media, where you can display your company’s employee-centric culture at scale.
4. Keep Up With Compliance
Managing wages and hours, data entry, and employee benefits are some common compliance challenges HR departments face. HR teams need to be updated with the latest guidelines and regulations to dodge hefty penalties.
The best payroll software can help you stay compliant. The software vendor will send automatic updates whenever a new rule or regulation is introduced, ensuring that your organization stays in line with it.
Every year, new company regulations, such as overtime norms and privacy requirements, pop up. A cloud-enabled HR solution takes care of the compliance side of things so that you can focus on your core tasks.
5. Ensure Data Security
The HR department deals with a sea of sensitive data on a daily basis. This includes employees’ personal information, bank details, company bank information, and more. A leak or breach of this data can hurt your company in many ways.
A cloud HR system comes with cutting-edge security capabilities. It enables multi-factor authentication and data encryption to ensure only authorized personnel get access to sensitive information.
6. Reduced HR Costs
An ADP study showed that small businesses spend roughly $27 billion every year on HR management. While some HR costs are unavoidable, there are several unnecessary expenses that you can avoid.
For example, ink and paper cost a great deal. Though often overlooked, companies in the US spend $460 billion only to manage paper-driven information overload. And let’s face it; the HR department accounts for the majority of paperwork taking place in a company.
An HR software solution can eliminate all paper-based procedures. Instead of using paper sheets, you can use customizable spreadsheets to organize your data.
Besides, an HR system helps you reduce labor costs. It automates several recurring processes, helping you cut down your workforce and reduce expenses.
7. Seamless Scalability
Are you getting new members on board? Get ready for some intensive paperwork. Making a new hire increases the information load. You need to store the candidate’s resume, documents, and other paperwork.
This inefficiency can limit your scaling ability. If you had to suddenly make multiple hires, you’d need to perform a substantial amount of manual paperwork. Moreover, the risk of losing and misplacing the papers will always be a sword hanging over your head.
The best payroll software enables seamless scalability. When you make a new hire, all you need to do is create a new employee profile and upload all the documents digitally. The solution comes with automatic backup and restore. Even if you lose all your data, you can easily revive it.
8. Seamless Integration
The best HR software solutions integrate seamlessly with other enterprise systems, such as best CRM software, ERP, project management and more. This helps you create a consolidated work environment and manage all your business operations from one place.
In the absence of integrations, companies have to administer processes separately. Not only is this time-consuming, but it also increases the risk of discrepancies and errors. Cloud HR software’s integration capabilities resolve these hurdles, thereby ensuring efficient collaboration.
9. Environmental Benefits
Companies play a monumental role in increasing pollution. Even if you’re a digital agency or service provider, the paper and electricity you use hurt the environment.
As humans, we have the moral responsibility of protecting and preserving the environment. By implementing a cloud HR software system, you cut down the consumption of paper, ink, and electricity, which reduces your carbon footprint.
With cost-efficiency and operational productivity becoming the essential aspects of HR management, the best HR software is something every forward-thinking company should have. By implementing a robust cloud HR solution, you can cut down your expenses, streamline recruitment and payroll, and provide a better experience to your employees.