Human Resource Outsourcing

7 essential reasons to choose a cloud-based HR software

Human resource (HR) management and human resource outsourcing service plays a fundamental role in an organization’s success, and efficient management of HR processes is essential for any business looking to thrive in today's competitive market. Over the past years, there has been a growing trend toward adopting cloud-based HR software, given the many benefits it offers over traditional on-premises solutions. 

Take a minute to think about your current HR system. How would you describe it?

  • Is it non-compliant?
  • Time-consuming?
  • Inefficient?
  • Has security issues?

If these and other similar descriptors come to mind, it is time to move on to cloud-based HR software.

Here are some reasons why it is imperative for businesses to adopt cloud-based HR software.

  • Accessibility

    One of the prime advantages of switching to cloud-based HR software is the level of accessibility and flexibility it offers. It enables professionals to access the system from anywhere and at any time, provided there is internet access. It enables employees to take a more active role in the organization’s needs.

    As a result of the PWC HR Tech Survey 2022, 86% of adopters of cloud-based HR software noticed increased productivity. In addition to this, there was seamless communication and collaboration between colleagues from different locations and within departments in the organization.

  • Cost Savings

    Cloud-based HR software can help businesses save money in various ways. For one, it does not need huge investments or maintenance fees. Furthermore, cloud-based HR software usually has a pay-per-use or subscription-based pricing model, allowing businesses to pay for only what they need and adjust usage as their needs change. 

    This reduces the costs incurred on deployment, maintenance, and upgrades. As per Gartner, 51% of professionals use cloud-based HR systems to allow cost savings.

  • Predictive Analytics 

  • Cloud-based HR software typically offers robust reporting and analytics capabilities, allowing HR professionals to analyze data and gain insights into their workforce. Artificial Intelligence within HR systems can track employee performance and take steps to deal with factors causing productivity loss.

    Cloud-based HR software can help identify the reasons behind HR issues like attrition and take corrective measures early on. Despite being a new technology, it plays a significant role in keeping firms competitive. 

  • Automation 

    Gone are the days of extensive paperwork and physically storing information in filing cabinets. Spending hours on tedious tasks is not just wasted time but also wasted money. Gartner reports that 56% of organizations use cloud-based HR software to automate repetitive or manual jobs. Such software can effortlessly automate and streamline many HR processes, save time, and reduce inconsistencies. 

    For example, onboarding and offboarding processes, scheduling interviews, or sending reminders can all be automated, freeing HR professionals to focus on more strategic tasks. 

  • Mobile Compatibility 

    Cloud-based software is typically compatible with mobile devices, allowing HR professionals to access the system from smartphones or tablets. This level of flexibility enables employees to respond to requests and resolve issues on the go, improving productivity and efficiency. No time will be wasted on physical follow-ups and constant email interactions. 

    The mobile-friendly user interface makes it easier for users to adjust to cloud-based HR computer programs quickly and effortlessly. According to a 2022 report by PwC HR Tech, companies not using cloud-based HR programs are 4x more likely to face barriers in enhancing user experience.

  • Security

    One of the major concerns for any organization adopting cloud HR software is security. What can stop hackers from stealing private information? How can data only be accessed by authorized users? These are some of the questions that bother users. With all the sensitive information stored in the system, these details must be protected. 

    To address these concerns, data encryption, multiple-factor authentication, and routine backups are just a few security measures cloud HR software companies offer. 88% of respondents in a 2022 PwC HR Tech survey reported that the deployment of cloud HR systems was beneficial in improving data security.

  • Integration

    It can be challenging to integrate traditional HR systems with other applications sometimes. Cloud-based HR software faces no such problem. It can seamlessly integrate with other systems and applications, including payroll, benefits, and time and attendance, with the help of APIs. It can streamline processes and reduce the need for manual data entry, saving time and reducing errors. Additionally, organizations can easily incorporate the latest innovations through secure APIs or plugins, keeping the system up-to-date.


In conclusion, cloud-based HR software offers various benefits, including enhanced accessibility, cost savings, robust security, automation, analytics, and reporting. Businesses can improve operational efficiency and derive valuable insights by leveraging cloud-based HR software. These solutions are unquestionably crucial tools for companies aiming to streamline their HR operations and maintain competitiveness in the modern digital world.

For organizations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed on organizational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive, yet modular suite of services is doing exactly that. Equipping organizations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organizations that are innovating collaboratively for the future.

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