Benefits of Cloud-Based Human Capital Management Solutions

HR Voice
HR Voice
6 Min Read
Benefits of Cloud-Based Human Capital Management Solutions
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It won’t be wrong to say that technology is evolving at lightning speed. Artificial intelligence and machine learning are changing the corporate game by introducing efficiencies that reduce human error and allow better decision making. Technology has also shaped the new face of HR, which has come a long way from cabinet files to accessing employee information on computers.

With HRMS on cloud, the functioning of HR has changed even further. If you have still not evaluated shifting your HRMS from on-premise servers to cloud, now may be a good time to do so. 

Here are the benefits that your organisation can enjoy by moving to a scalable and flexible cloud-based HRMS.

Centralised Management of Data:

HR functions deal with enormous amounts of confidential data. Maintaining the sanctity of data while limiting accesses to the central repository is always a priority. With HRMS on cloud, HR functions can now easily manage high volumes of data at one place. That too, without being concerned about limited storage space as was the case with internal servers. Moreover, the professionals can access data from anywhere, anytime and from any device.

Support for Global Expansion:

HR functions of global organisations find it challenging to adhere to local laws while also maintaining the credibility of data at a macro level. With HRMS on cloud, they can organise their local forms and policies at one place and collaborate seamlessly when implementing any changes on a global level. It can ensure uniform employee experience across locations. Moreover, with all information available on their fingertips, employees can quickly make crucial decisions from anywhere in the world.


Every organisation is different and so are its needs. For instance, the HR needs of a startup which is trying to formalise the basic HR process are starkly different from well-established organisations that have legacy processes. 

With in-house servers, HR functions had to adapt to software with limited capabilities. They also had to repeat the entire process of selecting, implementing and transitioning to a new system as and when they moved to a different stage in their lifecycle. However, HRMS on cloud offers customisation of the highest order. HR functions can choose the features they need and change it as per their needs.

As the underlying system remains the same, the transitioning is not only more cost-effective but also more seamless. Besides, employees do not have to go through the painful process of getting used to a new system.

Better Collaboration:

Highly effective organisations are the ones that make quick decisions and act fast. Time is of the essence, and the more time that organisations spend on crucial decisions, the higher is the opportunity cost. With HRMS on cloud, employees can collaborate in real-time and move at a much faster pace. Gone are the days when a document would have to go through multiple stages of to and fro before it could be approved. HRMS on cloud allows several users to access the documents in real-time, make changes, and accelerate the approval process.

Enhanced Employee Experience and Engagement:

Millennials are a generation that feeds on social media and easy communication. With myriad apps at their disposal, they are used to doing simple tasks such as ordering food, booking cabs and watching videos on their mobile phones. They are also hungry for information and want instant answers.

HRMS on cloud allows the employees to access information and raise requests with a simple login process. They can seamlessly perform tasks like timesheet submissions, travel requests and income tax declarations without filling out lengthy spreadsheets. Moreover, they can do all of these through their mobile phones with reduced human error. 

When the HR processes are on cloud, all the employees, regardless of their location, can experience a superlative degree of HR service. 

Automatic Software Updates:

HR is a function that has to comply with all the local and organisational norms. For instance, adhering to income tax brackets and latest data security systems. The problem of compliance can intensify if the presence of the organisation is on a global level.

HRMS on cloud offers the convenience of regular and automatic updates to take care of these changing norms. Moreover, any new modules or security patches to the HRMS get automatically added. 


As seen above, HRMS on cloud is scalable, flexible, cost-effective and allows an organisation to offer better personalisation to the employees. With better collaboration tools, employees can deliver higher productivity and efficiency in their roles.

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