I believe an HR system is a must for all of my clients, and indeed all small businesses with employees. Not only does it save time, but in the new GDPR world we live in you need to make sure your employee’s data is safe and secure.
What is a cloud-based HR system?
A simple definition: ‘the cloud’ is where users ‘rent’ hardware and/or software instead of actually buying it. You pay for the amount you use and never own it.
Understanding cloud computing
Many of us use some form of cloud computing without really knowing it – Gmail and Dropbox are good examples, but it could even be said that doing your banking online or even buying a book from Amazon puts you ‘in the cloud’.
Taking cloud computing to its ultimate level, businesses with hundreds of employees will operate entirely online – they won’t have in-house servers or installed applications. All of their IT infrastructures, file saving and applications will be will be done ‘in the cloud’.
The key thing to remember is that there is no ‘cloud’. All cloud computing is firmly land-based, often behind impressive hard and soft security. All responsible cloud providers have infrastructure that most small businesses could only dream of.
Software as a Service (SaaS)
Software as a Service is where users need an application to do a specific job but don’t want to buy the software. In a business situation that might include CRM tools like Salesforce or Infusionsoft.
You pay for them based how much you use and the advantages are:
• No big upfront cost to buy and install the application
• No ongoing maintenance costs such as installing software updates or maintaining servers.
What does this mean for you?
You and your clients will almost certainly be using something in the cloud and it’s not going away. Whilst it could be said that every client is different, there are some real benefits to Software as a Service that all businesses should consider.
Where a business needs specialist systems then cloud applications may be the only cost-effective option. If a business needs multiple employees to access a system and/or access outside of the office then SaaS applications come into their own.
Why do you need HR software? Here are just 5 reasons:
- Improved security – Keeping your employee’s data within a cloud-based system means reducing the paperwork that is kept on location. The protection that goes into a system is far superior than a filing cabinet!
- Improved effectiveness – With an HR system, you have everything at your fingertips. This means your business decisions can be made quickly and easily.
- Improved productivity – A self-service system can hugely increase productivity. No longer do employees have to locate forms for annual leave or write emails updating personal information.
- Improved engagement – You can use tools within an HR system to track objectives, praise members of the team and send announcements to make sure everyone is on the same page.
- Increased ROI – HR systems don’t have to cost the earth but the time-saving measures that they can bring from freeing up yours and your employees’ valuable time can be incredible!