Understanding the Cloud Based HR Software

The human resources profession isn’t known for being responsive to change. However, new advances in cloud technology have finally forced it to evolve. New cloud HR software makes employee management easier than ever. It is particularly beneficial for smaller organizations that lack the resources to hire a team of HR professionals.

Shaun Sutnerof TechTarget reports that SaaS solutions are actually used by more organizations than traditional HR systems.

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“Big HCM vendors have moved decisively to SaaS HR software platforms and are increasingly adding talent management, employee engagement and other new tools to supplement core HCM functions, according to a report from Forrester Research. In fact, for the first time, SaaS HR software has surpassed on-premises systems in the HR tech market, accounting for 56% of installed HCM systems, up from 36% in 2013, according to the report, lead authored by Paul Hamerman, vice president and principal analyst at Forrester,” Sutner writes.

Key Features of HR Applications

There are a number of software applications, such as peoplehr.com which are used for streamlining important HR functions. Here are some of the things that you can use these tools for:

  • Keeping track of sick time used
  • Tracking hours worked and exporting to your payroll provider
  • Ensuring compliance with federal and state employment agencies
  • Storing details on new job applicants
  • Solicit feedback from employees

Since information is stored in the cloud, it can be edited and accessed in real-time.

Primary Benefits of HR Software

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Many organizations are facing a number of challenges with employee management. HR software can address them.

Here are some of the primary reasons more employers are leveraging HR software.

Boost Employee Retention

According to surveys from Payscale, nearly 60% of businesses are concerned about employee retention. HR tools help companies identify employee concerns that must be addressed.

Address Employee Tensions in the Workforce

Some employees will become frustrated enough with workplace problems that they will leave. However, most people will simply let their frustrations fester, which leads to other issues, such as:

  • Declining productivity
  • Discord with coworkers
  • Disregard for customers

All of these problems can create serious problems for the company if they aren’t addressed. Fortunately, new HR software makes it easier to track these problems and take prompt action.

Avoid Payroll Oversights

Payroll management is one of the most frustrating parts of being an employer. If you fail to pay employees what they are owed, your employees can become very disgruntled. You may have to pay fines to the labor board for failing to take proper action.

Tax issues are also a major problem with payroll error. Approximately 40% of all businesses have to pay fines to the IRS for failing to pay all necessary payroll taxes.  The average fine is $845 a year.

HR software makes it much easier to track payroll and avoid making costly mistakes.

Improving the Hiring Process

Making poor hiring decisions is a huge mistake that most businesses make at some point. According to the Harvard Business Review, 80% of all employee turnover is due to bad hiring decisions.

Vetting employees is one of the most important parts of hiring. Even if you do your due diligence, it is easy to overlook or forget certain information that you uncovered on your prospective employees.

New HR software makes it easier to keep track of your applicants, so you can make more informed decisions. You just have to use it properly.

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