Cloud Based HR Systems: An Overview

Transitioning to cloud-based HR systems is a common yet challenging path for many organizations today.

In this post, we will clearly define cloud-based HR systems, outline their key benefits, explore leading solutions, and provide actionable recommendations for successfully migrating your HR workflows to the cloud.

You will gain a comprehensive overview of what cloud-based HR is, the value it offers, top platforms and vendors, best practices for implementation, and how modernizing with cloud HR technology can transform efficiency, data insights, and the employee experience across your organization.

Introduction to Cloud Based HR Systems

Defining Cloud Based HR Systems

Cloud based HR systems are web-based, software-as-a-service platforms that deliver core HR functionality online via the cloud. This includes modules like recruitment, onboarding, payroll, benefits admin, performance management, and more. Key features include:

Accessible from any device with an internet connection
Automatic software updates
Scalability to support organizational growth
Integrated modules and data sharing between HR functions
Enhanced data security measures

By moving HR systems to the cloud, companies can streamline processes, free up internal resources, and provide employees and managers with tools for greater self-service.

Exploring the Benefits of Cloud-Based HR Systems

Migrating to one of the top cloud based HR systems brings several advantages, including:

Increased efficiency - Automation and seamless integrations between modules saves time on manual tasks. HR staff capacity is freed to focus on strategic initiatives.
Easy scalability - Cloud platforms scale up or down to accommodate fluctuations in headcount. This simplifies growth.
Enhanced data security - Leading cloud vendors employ robust security protocols and infrastructure to protect sensitive employee data.
Lower costs - No large upfront capital expenditures on servers/software. Pay-as-you-go subscription model costs less.
Improved self-service - Employees and managers have 24/7 access to HR tools and information via employee/manager portal. This empowers the workforce with real-time data at their fingertips.

Why Companies Choose Top Cloud Based HR Systems

The drivers behind organizations adopting cloud based HR systems include:

Replacing outdated legacy HR systems
Improving employee experience through user-friendly self-service access
Gaining better insights via real-time analytics on workforce data
Consolidating information across locations/business units into single HR database

Transitioning to a unified cloud HR platform provides the opportunity to standardize processes across the organization and upgrade technology capabilities. This allows people data and operations to be managed more efficiently.

Which HR cloud platform is best?

Choosing the best cloud-based HR platform can be challenging given the many options available. However, the "best" system depends on your organization's specific needs and priorities.

When evaluating HR cloud platforms, some key considerations include:

Features and functionality: Assess which features are most important for your workflows such as payroll, benefits administration, performance management, etc. Consider both current and future needs.
Ease of use: The system should have an intuitive interface for admins and employees. Look for platforms that provide self-service options.
Security: Cloud systems should have robust security protections and protocols in place such as data encryption.
Scalability: Choose a system that can grow with your evolving business needs. Opt for platforms that easily integrate with other tools.
Cost: Consider both upfront and ongoing expenses. Make sure the pricing model aligns with your budget.
Support and training: Look for responsive customer support and sufficient learning resources to facilitate adoption.

Some top-rated HR cloud systems to evaluate include BambooHR, Paycor, Rippling, Workday, Zenefits, and monday.com. Schedule platform demos to determine the best match for your priorities and use case. Weigh the pros and cons of each option.

By carefully assessing your needs against solution capabilities, you can determine the ideal HR cloud platform for your organization. The "best" system provides a combination of robust features, ease of use, flexibility, and affordability.

What is cloud-based HCM software?

Cloud-based human capital management (HCM) software delivers HR functionality over the internet through a software-as-a-service (SaaS) model. Rather than installing software locally, organizations access HCM systems online via a web browser. This approach provides several key benefits:

Flexibility and Scalability

Cloud HCM systems scale easily as organizations grow. There is no need for additional hardware or infrastructure costs. New features and updates are handled by the vendor.

Accessibility

Employees and managers can access payroll, benefits, performance reviews and other HR data from any device via a web browser. This enables mobile-friendly, self-service workflows.

Integration

Leading solutions offer hundreds of pre-built integrations with popular business apps like G Suite, Office 365, Salesforce and more. This streamlines HR processes organization-wide.

Security

Reputable cloud vendors invest heavily in security and protect sensitive employee data through encryption, access controls and advanced threat detection.

By moving HCM to the cloud, HR teams can focus less on manual tasks and more on strategic initiatives that drive business results. As examples, Oracle Fusion Cloud HCM and SAP SuccessFactors offer full-suite HCM systems with global deployments across industries. Evaluating providers based on configurability, ease of use and breadth of functionality is key to long term success.

What is SaaS based HRMS?

SaaS HR system is cloud software hosted by a third-party provider, licensed on a subscription basis and used for managing HR-related transactions. Its focus areas include personnel tracking, payroll, benefits, recruiting and onboarding, training, and more.

Key features of SaaS based HRMS include:

Accessibility: Being cloud-based, SaaS HR systems can be accessed anytime, anywhere via the internet. This enables remote work capabilities.
Scalability: They easily scale up or down to match changing business needs. Adding or removing users is simple.
Updates: The SaaS provider handles all software updates, so you always have the latest version.
Integration: Many SaaS HR platforms offer integrations with existing company software like payroll, accounting, etc.
Security: Data is securely stored on the provider's servers. Regular backups and encryption provide protection.
Affordability: SaaS HRMS follows a pay-as-you-go subscription model, avoiding large upfront costs.
Customization: Platforms allow for some customization to tailor the system to company needs.

Key benefits of SaaS based HR systems include increased efficiency and productivity in HR management due to streamlined workflows, better accessibility to data, and hassle-free maintenance since the provider manages updates, security, backups etc. The subscription model also allows flexibility to scale as needed.

Overall, SaaS HRMS aims to simplify HR processes using an intuitive and user-friendly platform accessible from anywhere at an affordable price point. The system integration capabilities also allow HR workflows to connect with other business-critical software.

Is breathe HR cloud-based?

With Breathe's cloud-based HR software, your data is held in a highly secure data center in the UK. The data center has complete CCTV coverage, motion sensors, reinforced doors, and controlled key storage systems to ensure data privacy and security.

Some key benefits of Breathe's cloud-based system include:

Accessibility - As a cloud-based system, Breathe HR can be accessed from any device with an internet connection, allowing for flexible remote work capabilities.
Automatic updates - The software is continually updated in the cloud, so users always have the latest version without needing to manually install updates.
Scalability - Cloud systems can easily scale up or down to accommodate changes in company size and needs. Adding or removing users is simple.
Integration - Breathe enables easy integration with existing company software like payroll, benefits administration, applicant tracking and more via API.
Disaster recovery - With data stored securely in the cloud, there is minimal risk of losing data due to on-site hardware failure.

So in summary, Breathe's cloud architecture provides flexibility, security, automatic updates, seamless scalability, easy integration and strong data backup capabilities. This allows for streamlined HR management and continuity of operations.

Comprehensive Capabilities of Best Cloud Based HR Systems

Cloud based HR systems provide a comprehensive suite of HR capabilities to streamline processes and improve workforce management. Some of the major modules typically included are:

Core HR Record Management

Centralized employee database for storing and managing key HR data like contact details, compensation history, tax forms, emergency contacts, and other personnel records. This eliminates duplicate data entry and simplifies reporting.

Applicant Tracking and Recruiting

Tools to post job openings, screen resumes, communicate with candidates, manage interviews and assessments, extend offers, and onboard new hires. This automates and optimizes talent acquisition.

Integrated Payroll Management

Built-in or seamlessly integrated payroll processing including managing payroll runs, tax calculations, garnishments, direct deposits, and digital pay stubs. Reduces manual work and errors.

Streamlined Benefits Administration

Online benefits enrollment, changes, ACA compliance tracking, and other features to efficiently manage and optimize employee benefits programs. Improves engagement.

Performance Management and Feedback

Functionality to define employee goals, provide continuous feedback, conduct performance reviews, and track development. Enables data-driven talent development.

By consolidating all these key capabilities into a unified platform, cloud based HR systems maximize efficiency, data accuracy, and workforce visibility. The centralized architecture and range of modules cater to diverse HR needs. Integrations further extend system capabilities as organizations scale. With powerful self-service and mobile access, they engage employees and managers alike.

Architecture of Cloud Based HR Systems

Cloud based HR systems utilize a software-as-a-service (SaaS) architecture, delivering applications over the internet through a web browser instead of needing locally installed software. This multi-tenant model allows multiple companies (tenants) to access the same cloud HR platform.

Understanding Multi-Tenant SaaS Architecture

Cloud HR platforms use a centralized architecture hosted in enterprise-grade data centers or public clouds. Companies access the software via the internet without needing local servers or hardware infrastructure. This multi-tenant model supports many customers on the same platform through isolated data and configurable settings.

Ensuring Data Security and Privacy in the Cloud

Leading cloud HR providers leverage infrastructure services like Amazon Web Services and Microsoft Azure that employ state-of-the-art physical and network security. Additional safeguards like encryption, access controls, and compliance certifications further protect sensitive employee data stored in the cloud.

Data Encryption and Security Protocols

End-to-end encryption of data in transit and at rest secures information as it moves between a company's systems and the cloud HR platform. Role-based access controls restrict data access to authorized personnel. Industry compliance certifications like SOC 2 demonstrate adherence to strict data security standards.

Customizable HR Workflows and Processes

While cloud systems utilize standardized software, companies can tailor many HR workflows and self-service portals to match unique business processes through configuration options. Custom fields, rules engines, and other personalization features adapt the platform to each organization’s specific needs.

Open API and Integrations with Other Systems

Cloud HR systems feature open API standards for connecting bi-directional data flows with existing ATS, payroll, benefits administration, and other business software. This allows companies to integrate the HR platform with critical systems to centralize data and streamline workflows.

Selecting the Best Cloud Based HR Systems for Your Business

When researching potential cloud HR solutions, key criteria to consider include:

Assessing Core HR Feature Set

Ensure the system supports your required HR modules like recruiting, payroll, performance management, etc. Cloud based HR systems typically include a suite of integrated tools covering:

Recruiting and applicant tracking
Onboarding
Payroll
Benefits administration
Time and attendance
Performance management
Learning management
Employee self-service

Evaluate which capabilities are must-haves vs. nice-to-haves for your organization. Also confirm whether key country-specific compliance needs are addressed, such as tax calculations.

User Interface and Experience

The platform should have an intuitive, modern interface for all types of users from employees to admins. Assess the UI on factors like:

Ease of navigation
Responsive design supporting mobile access
Custom branding options
Role-based interfaces and dashboards
Embedded help, tooltips, and training

Testing the actual system hands-on via free trial can clarify the real-world UX.

Configurability and Customization Options

Seek out flexible systems that can adapt via configuration vs. custom code to unique HR processes. Understand options to:

Tailor fields, forms, workflows
Build custom fields and objects
Integrate with other business systems via API
Modify system behavior with scripting

This configurability ensures the platform aligns to your existing processes vs. forcing process changes to fit the software limitations.

Mobile Cloud HR App Accessibility

Evaluate how well the solution optimizes for employees, managers and HR accessing information via mobile devices. Key aspects include:

Dedicated mobile apps for common employee/manager tasks
Mobile-friendly self-service portal
Offline access support a plus
Touch ID, Face ID, passcode access
Notifications and messaging

Anytime mobile access encourages employee adoption and productivity.

Understanding Implementation and Adoption

Understand the typical implementation cycles and internal resources required to rollout the system. Elements to explore:

Implementation timeframes
Training modes (virtual, onsite)
Change management best practices
Ongoing support model

An experienced implementation team combined with executive sponsorship helps drive user adoption.

Leading Cloud Based HR Systems Companies and Their Offerings

Some of the leading providers in the cloud HR system market include:

SAP SuccessFactors for Comprehensive HR Management

SAP SuccessFactors is a full-suite human capital management (HCM) solution focused on core HR, payroll, talent management, and employee experience. Key features include:

Comprehensive HR modules covering the entire employee lifecycle
Global HR and payroll capabilities
Performance management and goal alignment
Learning and development programs
Recruiting and onboarding
Employee data and analytics

With SAP SuccessFactors, organizations can consolidate various HR processes into a unified system accessible from any device. This helps centralize employee data, reduce manual tasks, and provide visibility into the workforce.

Workday: A Leader in Cloud Based HR Systems

Workday is a cloud-based HCM powerhouse known for high-end offerings centered around financial management alongside human resources. Workday HCM provides:

Core HR record management
Benefits, compensation, and payroll administration
Talent acquisition and onboarding
Learning and development
Workforce planning and analytics

As an end-to-end platform, Workday allows organizations to optimize HR operations, gain insights for strategic planning, and elevate employee experiences.

Oracle Cloud HCM's Global HR Solutions

Oracle Cloud HCM is part of Oracle's broader cloud solutions providing global human resources, payroll, and talent modules, including:

Core HR and workforce management
Talent acquisition and onboarding
Learning and development
Workforce rewards and well-being
HR helpdesk and employee services

Oracle Cloud HCM aims to centralize HR data and provide self-service access across devices. This gives HR leaders comprehensive visibility while allowing employees to manage their own information.

UKG's Unified Cloud Based HR and Workforce Management

Created from the merger of Ultimate Software and Kronos, UKG provides cloud human capital management (HCM) and workforce management solutions:

HR, payroll, and talent management
Time and attendance tracking
Scheduling and shift planning
Labor cost tracking and compliance

UKG consolidates HCM technology with workforce optimization, allowing for unified systems instead of multiple platforms. This connects frontline data with back-office HR.

BambooHR: Tailored for Small and Medium Businesses

BambooHR is a mid-market focused system for small and medium businesses (SMBs) that offers integrated recruiting, onboarding, human resources, and benefits administration, including:

Applicant tracking and hiring
HR documentation and recordkeeping
Time-off and leave management
Performance management
Customizable reporting

As an SMB-tailored solution, BambooHR aims to provide essential HR functionality that is affordable, easy to implement, and intuitive for smaller organizations.

Implementing Cloud Based HR Systems: Scheduling and Shift Planning

Cloud based HR systems provide powerful workforce management capabilities to optimize scheduling, shift planning, and time-off requests. By automating these processes, organizations can improve productivity, ensure compliance, and boost employee satisfaction.

Automating Scheduling with Cloud HR Tools

Cloud based scheduling software streamlines creating staff schedules based on availability, skills, and business demand forecasts. Key benefits include:

Auto-scheduling to assign shifts based on configured rules and employee preferences
Shift swapping so employees can easily trade schedules
Managing schedule exceptions like paid time off and sick days
Tracking attendance and integrating with payroll
Mobile apps so employees can view schedules remotely

By automating scheduling, cloud HR systems save managers time while improving workforce visibility.

Shift Planning and Real-Time Adjustments

Cloud platforms enable real-time shift planning adjusted to changing needs. For example:

Managing unplanned absences by notifying backup staff via mobile app
Accounting for fluctuating customer demand by extending hours or calling in additional workers
Communicating last-minute schedule changes across the organization

This agility allows optimizing operations and employee hours worked to lower labor costs.

Time-Off Management and Compliance

Cloud HR solutions centralize time-off requests and approvals with configurable workflows. Benefits include:

Employees submit PTO requests as per company policy
Rules ensure adequate staffing levels are maintained
Automated approvals reduce manual processes
Available time-off balances are visible to employees
Compliance reporting for laws like FMLA

By automating time-off management, organizations avoid compliance issues while improving employee time-off experiences.

In summary, cloud based HR systems deliver robust scheduling, shift management, and absence management capabilities to drive optimal workforce utilization, productivity, and satisfaction.

Key Takeaways and Conclusions on Cloud Based HR Systems

In summary, some of the major points to understand regarding cloud based HR systems include:

Summarizing the Efficiency Gains from Cloud HR Systems

Cloud platforms streamline HR processes and provide organization-wide transparency by centralizing data and automating manual tasks. This allows HR teams to work more efficiently and strategically.

Enhancing the Employee Experience with Cloud HR Apps

Modern, consumer-style UI with self-service functionality empowers employees and managers to access information and complete tasks anytime, anywhere. This leads to greater convenience, engagement, and satisfaction.

The Strategic Impact of HR Analytics in the Cloud

Built-in analytics and emerging AI tools provide real-time insights into people data. This supports data-driven decision making and helps HR demonstrate ROI on talent programs.

HR's Evolving Role with Cloud Based Systems

By automating administrative burdens, cloud systems free up HR staff to focus less on transactions and more on employee-centric initiatives that align with business goals. This elevates HR's strategic influence.