How Cloud-Based HR Systems Resolve These Common HR Pains

HR Platform In UAE

April 14, 2022

The shift to HR automation has increased now more than ever, especially with the recent covid outbreak. Amidst the many HR softwares that organizations are utilizing in their journey to automation, a cloud-based HR system stands as one of the most inevitable options. In fact, it is reported that the use of cloud-based HR solutions has tripled since 2015 and is expected to see steady growth in the foreseeable future. One of the main reasons for this growth in the cloud-HR space is due to proven ability in tackling some common HR pains, a few of  which are as follows. 

 

Excessive Paperwork Creating Inefficiency 

It is estimated that in a traditional HR setting around 50% of HR functions are focused on processing and filtering paperwork. HR managers also admit that most of the time, they tend to find themselves stuck doing paperwork. This alone takes up a significant amount of employee working hours that can be spent on other value-adding HR areas such as decision making, critical thinking, and evaluations. 

With a cloud-based HR platform, all files can be created and stored digitally and accessed instantly with apps like Box, Google Drive, and DropBox.  Even filtering for a particular document can be done in a matter of a few seconds, giving employees and the HR team enough productive time to focus on crucial areas. 

 

Delayed Performance Assessments 

Performance assessment is a key necessity to motivate, engage, and retain employees. One of the common reasons why employees leave is due to delayed assessments that occur through tedious paperwork and unfair appraisals done through biased views that are not matched against real-time performance statistics. Such assessments also create a bad reputation for the company and restrict the ability to attract potential talent. 

As cloud-based HR software allows employee performance to be tracked automatically and in real-time, there is no room for manual interventions, errors, or biased views. This allows timely performance assessments and recognition which goes a long way in motivating employees and increasing their engagement levels. It also lets employees know where they need to improve or if they require additional training. 

 

High HR Costs 

According to the McKinsey Global Institute, it is estimated that 56 per cent of all tasks human resources departments perform can be automated with existing technologies, which includes cloud-HR. As cloud HR software automates many HR functions, the need for employees for different HR functions such as file management, recruitment processes, and employee assessment can be minimized, significantly reducing HR costs. Additionally, the need to train them, and provide benefits and incentives can also be completely eliminated, supporting a financial advantage and facilitating in overcoming such HR pains. 

Moreover, in a manual HR setting corporate data is stored using different methods like filing cabinets, file lockers, fire-proof filing cabinets, and so on. All these measures make up a huge sum for HR expenses monthly. In some cases, maintaining backups for these paper and file records is also equally as costly. However, with a cloud-based HR system, only authorized individuals can access the data and the entire system is protected using many different features like built-in firewalls, consistent security updates, AI and auto-patching, redundancy (Ulta-backed-up-data),  and third party security testing. This eliminates the need to incur an extra expense on protecting and safeguarding confidential HR data stored in the form of hardcopy.