What Are The Pros And Cons Of Setting Up A Cloud Based HR System?

Advancement in the fields of internet technology has made the HR system one of the most versatile platforms through which an organization can manage its resource system as well as improve operations. Most of the Human Resource Management systems that are used by companies are cloud-based. One of the major reasons for this is its complete versatility and flexibility of operations. A cloud based HR system can be accessed from different locations if required. While small businesses still use the typical on-premise HR solution system that is maintained and operated locally, there is a raising need for a cloud-based system.

In this blog, we would be discussing the pros and cons of a cloud-based HR system.

HR systems these days can be broadly categorized into 2 main system

  1. One-premise or localized solution
  2. Cloud-based or remote server solution

A cloud-based solution is generally operated using Software as a Service or commonly known as SaaS. The advantage of this system is that it is browser-based and thus one can use authentic login details to gain access to the HR system from anywhere. The system is fully accessible from remote locations and thus it provides enough flexibility to corporate companies that have their offices in different countries or continents. Cloud-based software comes with loads of benefits that a company can use.

  • It is affordable

One of the primary things about the cloud-based system is that is very affordable. Since the system can run on a web browser it does not require any huge upfront investment for the company. A yearly or monthly subscription with SaaS is enough to make it accessible. Unlike a localized system, which requires a hefty investment initially, a cloud-based system makes it easier on the cost. The TCO or total cost of ownership is also low as the cost of updates and maintenance comes integrated with the subscription. A company does not need any local team for its maintenance.

  • Time to market

The time to market or TTM is faster when you opt for a cloud-based HR system. It does not require any local installation and can be used just out of the box. There is no need to go for any time-consuming implementation process.

  • Automatic upgrades

Your cloud-based HR system on SaaS will be upgraded by your provider through remote access and thus you would not lose any of your business hours just for the upgrades. The provider can update and upgrade the patches on the server to make the system up and running.

  • Perfectly secure service

HR data is quite sensitive and needs to be protected with high-security measures. SaaS platform provides a high and advanced security system to protect your data.

While there are many more pros for a cloud-based HR system, one can point a couple of cons as well. The disadvantages can be mentioned as:

  • Less customizable

SaaS happens to be a browser-based system that does not offer drastic customization of the already designed HR system. So, if you are looking for a thoroughly customized system to suit your company’s requirements, that you should think twice.

  • Less control

The security system cannot be controlled by the company but by the provider only.

To conclude

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A cloud based HR system is the future of Human Resource Management and with all its features, it will be the right choice for companies currently.