What is cloud HR software?

“The cloud” is a buzzword that’s come to be associated with better tech. But what, exactly, is cloud-based HR software? And how might your business benefit from basing your HR management in the cloud?

The cloud might sound like a fluffy, vague concept. In reality, it’s a web-based technology that’s hosted remotely, rather than having to be installed on your business premises. It can also refer to the bundling of services into a single solution.

Read on as we explore the features and benefits of a cloud-based HR management system.

What is cloud HR?

While the technological concept of the cloud was originally thought up in the 1960s, it’s only in more recent years that it’s been developed for business use.

HR functions have traditionally been managed through an internal network, calling for the installation of expensive software that’s had to be run and maintained by trained IT experts.

The cloud has made HR management that much easier.

Linking your HR processes, allowing information to be accessed remotely through computers, tablets, and phones with an internet connection. This opened the door to cloud-based HR services being easy to access from anywhere and at any time. It allows for more streamlined document storage, security, and data access.

What are the benefits of managing HR in the cloud?

There are numerous benefits to managing HR with cloud-based software. Let’s dive into the top six benefits that small and medium-sized business owners in Australia can enjoy.

Accessibility

One of the main benefits of a cloud-based HR system is that it can be accessed round-the-clock, whether you’re at home, in the office, or anywhere else in the world.

This flexibility makes room for added efficiency and accuracy in the handling of everything from your payroll reporting to employee onboarding because everyone involved in the process has real-time access to the same information.

Scalability

Cloud-based HR management software has the capacity to handle a vast amount of employee data. While many HR software providers increase prices to accommodate varied data storage needs, it’s still bound to be a more cost-effective option than if you had to upgrade or replace internal HR management systems.

Plus, a digital HR solution is able to grow with your small business and scale up with you instead of slowing you down or limiting your business growth.

Time savings

From monthly payroll calculations to the calculation of annual leave, there’s no denying that HR activities can take up great chunks of time. And the balancing of so many plates can take a toll, especially for small business employers who tend to wear many hats in their business. HR web-based software can take some of the load off through automation and digitalising manual tasks.

Automating routine tasks free up HR professionals to focus on aspects that make the best use of their knowledge and skills. For instance, more time can be spent on analysis and making decisions that actively boost growth and business performance based on HR data.

Financial savings

In freeing up more time for high-level activities, HR software can make for a great return on investment. It’s bound to save you money too, given that you won’t be faced with the costs of internal software deployment, maintenance, or upgrading. You can start off with the cheapest package, and only upgrade when and if your business and HR needs call for a change.

This is especially useful if the HR software you invest in provides end-to-end coverage of your HR process. Having one, centralised system over several disconnected programs will always present better outcomes.

Security

Whether you’re a business owner or an in-house HR specialist, you’ll appreciate the importance of protecting sensitive employee data. It’s a particular priority for multinational companies, given stringent European GDPR.

Cloud software like BrightHR’s own solution comes complete with two-factor authentication for secure logins and check on the authenticity of admin changes. Plus, cloud storage protects your information from risks that physical storage solutions often fall victim to like natural disasters and other emergency situations.

Employee engagement

Worker engagement is a major issue for companies of all sizes. Ipsos reports that 72% of Aussie workers experience a positve work culture and 67% say they would recommend their organisation to other people.

However, a 2024 Gallup report reveals that nearly two-thirds of Australian workers aren’t engaged at work and 44% are actively on the lookout for new jobs. Changing these figures will take a concerted effort across many facets of a business.

But HR software can support with boosting engagement and satisfaction levels across your business by putting employees in the driving seat. With self-service portals, employees can submit their own leave requests, have a transparent view of the team calendar, submit their own expenses, and stay on top of their accrued leave balance.

Cloud-based HR services also allow for the remote storage and access of vital HR documents. Authorised employees can view their personal data, company policies, and training materials all in one place. With more of an understanding and a say in HR matters, they can help dedicated HR staff to fulfil any employee needs and concerns, which, in turn, makes for greater engagement.

Is cloud HR software the same as cloud HRMS and HRIS?

Terms such as cloud HR software, HRMS and HRIS are often banded about as if they’re one and the same. However, there are some key distinctions when it comes to the scope and operation of these HR technologies.

Cloud-based HR software is hosted remotely and managed via the web. It’s based on a software as a service (SaaS) model, which minimises the need for on-site tech.

Take BrightHR, for example, updates are managed automatically, with a range of features for easy HR management. You simply subscribe and pay for the level of service that you need.

HRMS and HRIS systems differ in that they’re focused on a range of HR activities and employee data management. Either of these systems can be delivered via the cloud for greater accessibility and scalability. The level of complexity and potential for customisation depends on whether you opt for an HRMS or HRIS solution.

What about online HR software?

Whether you want to call it cloud-based or not, all online HR software is hosted and accessible via the web. With that said, the term “online” is often used in reference to the actual portal, or UI, that users log into. In the case of BrightHR, it’s a single user-friendly platform for the end-to-end management of HR processes.

There’s no need to download or install your HR software when it’s hosted on the cloud. No budget has to be set aside for the arrangement of on-site servers. And you don’t have to rely on in-house tech staff for software upgrades, backups, or troubleshooting. Everything is taken care of by the software provider.

Enjoy these benefits with BrightHR

Having explored the key functions and benefits of cloud-based HR software, you can see them all in action by booking a free BrightHR demo.

From there, it’s a simple matter of set-up and integration. There’s no need for on-premises installation, so you don’t have to worry about the drain on your IT resources.

Plus, BrightHR saves your business money with its high return on investment. The average Australian business can save upwards of $10,000 by investing in BrightHR software.

Go ahead and book your free demo today!