November 14, 2019

Role of Cloud in HR Management

  • By Abhishek Upadhyay
  • September 5, 2019
  • 2 Comments
Role of Cloud HR

Cloud Computing is not a recent buzzword. The technology has been here for more than a decade now. And no industry has been able to keep itself away from it, simply because it has a lot to offer.

HR technology has also been largely touched by cloud computing. More and more organizations are making the move towards cloud-based HR systems and leveraging its capabilities to better manage resources and cut down on costs. HR cloud is driving the efficiency and productivity of organizations on a global level.

But What Exactly Do We Mean When We Say “Cloud Computing”?

As per Gartner, Cloud Computing is a style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service using Internet technologies.

Techopedia defines Cloud Computing as the use of various services, such as Software Development platforms, servers, storage, and software, over the internet, often referred to as the “cloud.”

Cloud computing can be categorized into Infrastructure as a Service (IaaS), Platform as a Service (PaaS) or Software as a Service (SaaS).

PCMag simplifies the term for the laymen. According to it, Cloud Computing simply means storing and accessing data and programs over the Internet instead of your computer’s hard drive. The cloud is just a metaphor for the Internet.

Cloud Computing is the on-demand delivery of computing power, database, storage, applications, and other IT resources via the internet with pay-as-you-go pricing – Amazon.

How Cloud Computing Impacts Human Resource Management

There are more jobs than unemployed people in the US. The Bureau of Labor Statistics said that there were 7 million job openings while the number of unemployed people was 6.1 million in the third quarter of 2018.

Hiring the right talent with the precise skills required for a role is getting tougher for HR professionals. Large companies (with over 250 employees) find it twice as difficult to fill roles than companies with 10 staff or fewer. A cloud-based HR system can come to the rescue of these organizations and improve the overall HR process for good.

Provides Companies with Easy Access to Innovation

As technology is taking an upward trajectory, access to innovation is getting easier for companies. Irrespective of their size, organizations can make use of Cloud HR software without investing heavily in it. They don’t need to change their HR software and/or invest in new technology as updates happen. They can simply opt for a cloud HR solution being offered by numerous firms as Software-as-a-Service (SaaS).

Furthermore, the ease of implementation is what drives the companies towards cloud solutions. The system is already in place and installation/migration needs just minutes. Tasks such as payroll management, recruitment, applicant tracking, talent management, benefits administration, etc., can be carried out with much ease. Also, the services can be availed for a fraction of the cost and it is the responsibility of the service provider to make updates available at regular intervals without billing extra.

Read more: What is Applicant Tracking System (ATS)?

Adds More Agility and Flexibility to the HR Process

Moving the core HR processes to the cloud provides organizations with added agility and flexibility. The audience is mobile and this creates a demand for a system that is always accessible. Cloud HR helps eliminate the stacks of paperwork linked with the basic HR functions in a company. This makes the HR team more responsive and agile. HR personnel can now manage and respond to workforce requests in a jiffy, from anywhere around the globe.

An aspect often associated with the above-mentioned benefits is security. With all the company data available on cloud and accessible seamlessly, wouldn’t there be a concern in the minds of the business owners about the security measures in place? Of course, there will. But the relief is, service providers, keep data safe by employing industry-standard security measures.

Streamlines the Recruitment Process

Recruitment is one of the core HR functions. An inefficient recruitment process that juggles to and fro departments within a company may leave candidates waiting and dissatisfied. Providing an excellent candidate experience is a top priority for HR managers and recruiters today. Not to forget, a smooth onboarding experience is also a necessity.

53% of HR professionals say that improved onboarding experience also increases employee engagement. So, one win follows another!

Cloud-based recruitment software can streamline the entire recruitment process. Each and every task right from screening candidates, to sifting through applications, to ultimately hiring and onboarding them can be managed by a centralized recruitment software with cloud capabilities. AI-powered HR software systems can help make intelligent hiring decisions without the introduction of any kind of bias.

Automates Repetitive and Data-heavy Tasks

A single job opening attracts 250 applications on average. Think about the pain a recruiter undergoes in screening and scanning each and every resume to shortlist the best-fits from the lot.

No doubts HR is a data-heavy department. Talk about employee data, performance reviews, payroll information, employee feedback – a lot of data makes way for itself every minute. While the task of collecting, organizing, and accessing data was a manual task in the past, cloud computing has changed the scenario.

Whether it’s about screening thousands of resumes for a specific skill, or messaging/e-mailing shortlisted candidates, or scheduling interviews for a large group of candidates at the same time, cloud HR automation makes it possible to automate the entire process. This makes it easier for the HR department to focus its time and resources on other productive tasks.

Facilitates Training, Learning, and Development

Implementing modern TLD (Training, Learning, and Development) measures are necessary for any organization to keep its workforce updated and in-sync with the latest in technology. With the companies now shifting to e-learning methods, the need for in-person training and learning methods are now passé. Gone with them are the hassles of manually training each employee as they join.

Modern-day HR software on cloud facilitates the training and learning process by having a central repository of training materials in the form of online lessons/classes, videos, presentations, audio files, and a lot more. VR videos are taking the learning industry by storm nowadays. Those are highly helpful in educating and training employees effectively.

The HR sector has completely transformed with the aid of cloud-based computing integration. Talk about scalability and security, or the ease of managing complex HR functions – Cloud Computing simplifies the task at hand. Last, but certainly not the least, HR Analytics obtained from the platform will help companies make data-driven intelligent decisions.

Cloud HR system is certainly beneficial for companies large or small, and not investing in it may prove fatal to organizations that want to hire and manage talented workforce better.

Read more: 4 Compelling Reasons SMBs Must Invest in HR Technology

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Abhishek Upadhyay

Abhishek Upadhyay is a Content Marketer with an affinity and flair for writing. He has crafted blog articles and marketing collateral for both B2B and B2C campaigns in his career of over 7 years and served various industries covering IT, Mass Media, Manufacturing, e-Commerce, and Services. The world of digital marketing is of immense interest to him. A staunch supporter of the Harvard comma, Abhishek is often called a Grammar Nazi.
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