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10 Benefits of Cloud HR Software for Small Businesses

One Minute Takeaway

  • Cloud HR software redefines the possible when it comes to modern HR.
  • Paycor research shows typical HR teams spend 70% of their time on inefficient tasks. Cloud software gives HR leaders time back in their day.
  • Software is scalable, growing with your business.


When the business world changes, HR changes too. In a little over a decade, cloud software has gone from “nice to have” to an essential tool for HR teams of all sizes. It might be the biggest technological development in the history of HR. Here’s why: cloud software doesn’t just make life easier for HR leaders—it redefines what’s possible. By automating manual admin, HR teams can focus on the bigger picture.

  1. Cloud Based HR Software Saves You Time – Paycor research has found that HR teams spend 70% of their time on inefficient admin tasks. It takes a lot of time to create schedules, track employee hours and calculate payroll using spreadsheets, let alone pen and paper. And that’s before you get to other HR responsibilities, like compensation strategy, succession planning and overseeing certifications. Cloud software automates many of these tasks and reduces manual errors.
  2. HR Can Be Redefined – Tasks that used to take hours can now be overseen in minutes. More time means HR leaders no longer need to spend every day lost in paperwork. Instead, HR departments can focus their attention on the business’s bottom line and getting the most from the workforce. This means diving into people analytics, planning long-term strategy and making proactive changes, rather than reacting to the latest crisis. With software taking care of the admin, HR becomes a more interesting job, while providing more value to the company you serve.
  3. Cloud HR Software Saves You Money – The more your HR team can do with its time, the higher your return on investment. Hours spent on manual admin aren’t just wasted time, they’re wasted money. But the financial benefits don’t stop there. Here’s where it’s important to understand the difference between software and cloud software. Rather than purchasing software outright, cloud software operates on a subscription bases. This reduces costs for individual companies, who also no longer need to worry about installing, maintaining and upgrading software—this now happens automatically. An added bonus: in PPP Round 2, Cloud Computing upgrades are a forgivable business expense.
  4. No Physical Technology – Cloud software is especially useful for small businesses. Operating technology outright means taking ownership of hardware and support costs. Bigger companies can afford to have their own, experienced IT support teams who are used to taking care of all in-house technical issues. Smaller businesses can’t. The good news is that with cloud software, they don’t need to.
  5. Location-Flexibility – Cloud software opens the door for HR teams to become ‘location-flexible’. That’s a fancy way of saying you no longer need to be chained to your desk. Employees are increasingly able to work remotely, so HR teams should be too. Cloud HR software is accessible wherever you are, so whatever needs done—whether it’s fixing schedules, communicating with job applicants or verifying your payroll data—it can be done on-the-go.
  6. It’s Updated All the Time – In the past, when you bought software, updates were infrequent if not non-existent. Cloud software means that your software can be upgraded literally every day, so you’re always using the latest version. In the world of HR, where you’re dealing with ever-evolving labor legislation, this can be the difference between a job well done or major compliance headaches.
  7. An HR Solution That Grows With You – Most companies are working toward a clear goal: growth. But are they ready for the changes that’ll be required when it happens? If your HR team (and software) isn’t scalable and flexible, you’ll be caught short when your company expands. With cloud software, you’re prepared for whatever happens. Unlike your team, software has limitless capacity: an increased workload won’t slow it down. As your company expands and decides on new strategic goals, you’ll be able to access new product features and specialized bundles that better meet your new reality.
  8. Seamless Integrations – Cloud HR software covers a lot of bases, and its possibilities are expanding all the time. If there’s something that your software doesn’t have, though, it doesn’t have to be a problem. Cloud software can easily integrate with partners who lead the field in other industries. For an HR team, this can be helpful for attaining services like specialized pay solutions, background screening or expense management. For the end-user, you’ll experience these add-ons as if they were part of the same software solution.
  9. Data Security to Keep Employee Records Safe – Your employees’ data is only as safe as the system it’s stored on. This is a big responsibility for businesses of all sizes, with severe consequences for those who fail. The easiest way to ensure information security is to leave it to the experts. Cloud HR software can offer threat detection, data encryption and risk assessment, giving you confidence that all personal information is kept safe, confidential and secure.
  10. Big Data Brings Opportunities – As HR leaders move beyond admin and take a greater responsibility for broader business strategy, it’s important that decisions are based on the best possible data. Software allows for instant analysis and provides easily consumable real-time data in complex trends, but the real value add is in the utilization of big data. By analyzing information from all clients, cloud HR software allows for industry benchmarking and comparative analysis, so businesses don’t get left behind by their competitors when it comes to recruitment, retention and compensation.

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