Why Should You Choose Cloud HRMS in 2021?

Advances in technology have transformed human resources in the last few decades. We all understand the importance of keeping up with the latest developments. Adapting to new technology can give you an upper hand in the competition. Those businesses that cling to traditional ways not only face a lack of productivity but soon become irrelevant. We no longer deny the important role that advanced technology plays for the firm.

The HR department is no longer home to the endless paperwork. Companies understand that it can do much more. With a cloud-based human resources management system, it can do all the complicated processes easily. It gives better efficiency and saves time. It provides much-needed flexibility in rapidly changing times. This is difficult to adapt to for premise-based software. We are in 2021 where organizations have moved from the confinement of physical space. Sticking with a solution that cannot be accessed remotely brings down productivity. In this blog, we will discuss the advantages of choosing cloud HRMS.

Easy to access

In 2021, most of us are partially or completely working from home. It is important to have an HRMS that is compatible with the remote work culture. On-premise software needs the physical presence of an employee to access it. The cloud-based human resources management system can be accessed from anywhere.

Employees can do most of the operations like marking their attendance, applying for leave, accessing important documents, and recording work hours. All this can be done with a simple android application on the phone. Those firms which operate globally can take care of all the basic HR needs of their employees through cloud software.


It gives more value at a lower cost. This comes as a surprise to many, but cloud-based HRMS is much more affordable. There are so many things like licenses, maintenance, installation, server, and upgrades that you pay for while using premise-based software. The cloud-based software uses a subscription-based model. You pay for what your company uses. This can be a monthly or annual subscription. There is no need to buy some expensive hardware for support either. It is budget-friendly and can be customized to suit the needs of the firm.

There are absolutely no hidden charges. It can save a lot in the long run. It also provides a self-service feature for employees. They can make changes on their own. This significantly reduces the workload for the HR department. The workforce can work on other productive tasks

Data Security

The HR department needs to maintain employee data. This data can be privacy sensitive as it contains a lot of personal and financial information about the individual. With ordinary software, it requires regular backups and someone trained for the job to handle it. In cloud HRMS updates are automatic. This way the latest security patches are always there for protection.

The cloud software is designed with the privacy aspects. Data is stored remotely and often encrypted to guard privacy. The systems are compliant with security guidelines. The backups are done by the software provider, so there is no need to worry about the loss of data. Access to this data is restricted to a few. This way it ensures to keep away people with no access code or an id. 

Reduced Paperwork

All the data can be saved safely in the cloud. It is easy to access this whenever someone needs it with a mobile phone or computer. It takes seconds to find the information that an HR person needs. There is no need to maintain a room full of paper files. Which usually takes hours to locate that single piece of paper when it is required. 


With cloud software customization is done to cater for the specific needs of the company. With more and more organizations shifting to dynamic structures, flexibility is important. In on-premise software, it might take a long time for the IT department to make the necessary changes. The same can be done quickly for the cloud-based system with the help of a software provider. 

Compliance management

Keeping up with the regulations is one of the important roles of the HR department. It becomes easy to update the guidelines and HR policies in the cloud software. It can be too much work to keep up with all the rules manually. The cloud software also makes it easy to curate various reports that need to be presented with a few clicks. The same process to make these changes in the regular software is very time-consuming. 

Employee engagement

Corporates understand the importance of employee engagement. It results in better involvement in operations, knowledge sharing, increased productivity, and initiatives. A cloud-based HRMS plays an important role here to keep the connectivity beyond the campus. It allows staff members to update all the information and take care of all basic HR functions on their own. They have access to their information. It facilitates easy communication with coworkers.

The HR department also gets real-time data. HR can also send a quick survey to employees which they can respond to from their phones. This data can be utilized to make quick decisions. Employees feel more empowered and valued this way. That also helps in better employee retention. 

Strategic advantage

Cloud-based HRMS Software gives easy access to information. It is stored securely and remotely. HR no longer need to be absorbed in piles of paperwork. It gives the department opportunities to generate valuable reports and instant analysis. This information can be used to make better-informed decisions which help in better recruitment, retention and engagement. It makes the processes faster and helps to build productive organizational culture. The analysis and predictions can also help higher management to make strategic plans.


It is the need of time to invest in cloud HRMS. It is a value for money with advanced features. It brings better accessibility and efficiency at a lower cost. The HR department is no longer attached only to keeping up with the regulations. The cloud HRMS empowers the human resources with strategic tools to increase productivity.

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