The most valuable and important asset in your company is not your office building or your warehouse but it is actually the people who work there. Without them, your company would not exist. Human resource is the most vital factor of production for any organization. Therefore one of your top priorities should be to look after smoothening your HR processes.
Before you embark on your journey to an HR solution, one of the most important questions you may ask yourself is which channel of deployment would be the best suited for your business. The deployment preference of most of the users is spread across On-premise and Cloud Based HR Software. And it’s viable to distinguish between the two so that you rest your choice on the best one. However, it is to be believed that, when it comes to technology adoption, usage and preference, cloud based HR software deployment remains high.
Moreover, we will also share some aspects of on-premise and cloud solutions which can help the HR team and decision makers choose the one that suits their requirements.
Traditionally most companies used to opt for an on-premise solution, where adapting to new software is often a time-consuming project. However, in regards to implementation and user adoption, cloud based HR software take an edge. With cloud based HR software everything is already configured, it’s easy to get started right away.
On the other hand, On-premise solutions tend to be a lot more expensive in terms of design, investment, and maintenance. It also involves a lot of hardware, firewall, security, backup and helpdesk resources.
Cloud based HR software are significantly cheaper, up-front and are usually charged per user. It is easy to predict costs over time, and organizations do not have to invest in additional hardware. The downside is that the organization may end up spending more money over the course of the system life cycle. With on-premise solutions, the initial upfront investment cost is more likely to be substantial. In addition, organizations are required to pay for ongoing maintenance, hardware, and IT personnel costs.
With cloud based HR software, it’s incredibly easy to add or reduce the number of users. Just like building blocks, you can fit in your needs and avoid paying for solutions which doesn’t serve your business purpose anymore. As the company and its needs evolve, cloud based HR software offer relatively easy transition with a pay-as-you-go model.
Cloud based HR software are more adaptable as compared to on-premise solutions. With cloud based HR software, version upgrades and customer support are usually looked after by the vendor as part of the ‘pay-as-you-go’ model. Furthermore, the version upgrades are readily available and ‘pushed’ out to all clients.
It is not surprising to say that while choosing an on-premise vs. cloud based HR software, cloud platforms will sustain more in terms of scalability, cost-effectiveness, and pace of innovation in the coming years. However, corresponding to your needs, your organization can pick what works best for your business. As with most business decisions, there is no such thing as a silver bullet. Decision makers must weigh their options when it comes to security concerns, cost savings, labor and maintenance costs, and even physical space. The best decision is a decision well-researched.