Benefits of Cloud Computing for HR

Benefits of Cloud Computing for Human Resources

          “It is not the strongest or the most intelligent who will survive but those who can best manage change.”

                                                                                                                                                                          – Leon C. Megginson

Cloud computing has been around for some time now. In fact, it’s almost impossible to walk your way through the world of HR without encountering references to cloud technology. We keep hearing large organizations making a move to the cloud. Despite the buzz, there still are companies and CHROs who are sitting on the fence, either aware and yet hesitant or still unaware of the immense benefits that makes cloud such a critical business asset in the current times and more so, in the coming future.

What is Cloud Computing?

Cloud computing refers to usage of configurable resources such as servers, storage, and software development platforms over the internet. In a cloud computing model the backend or the hardware is completely managed by the cloud vendor while the user pays only for the services used such as memory or software. These services are generally scalable. The main advantage for the user is that they do not have to build and maintain the computing infrastructure in house, thus saving in IT costs.  This new paradigm in information technology is particularly helpful for small businesses that do not have the financial prowess to match the large enterprises.

Benefits of Cloud Computing for Human Resources


Much of the discussion about adoption of cloud in HR revolves around the key benefits of cost of ownership, innovation and ease of use. When employers were asked to discuss their key motivations to implement cloud in HR, the results were along expected lines. While these advantages are strong enough to make a robust case for using cloud, those in HR who have learned to explore the hidden value of cloud computing will tell you there is more to what meets the eye.

Here are the top benefits of cloud computing in HR that your organization will experience:

Cloud computing in HR adds more flexibility

Moving your core HR processes to cloud adds more agility and flexibility. Catering to an audience which is always mobile, you need instant access to vital information and tools to remain relevant. Adopting cloud-based HR solutions eliminates the stacks of paperwork associated with the basic HR processes making them agile and responsive. Plus, even if the HR is working out of a different location like their home, cloud provides an easy way to manage and respond to workforce requests in an instant.

(Also Read: Why Cloud Based ATS is a better option)

HR and cloud computing allows innovation

HR is currently a minefield of changes, with a lot of things evolving even as we talk about the change. Cloud supports a quick access to innovation, unlike the on-premise software where one has to spend days going around in circle with the developers, and on boarding service executives. With cloud, not only the implementation of software innovation is fast, but also the changes are automatically adopted through updates with minimal disruption to day-to-day business. This way you will be saving time and money while implementation, and also, while adopting latest innovation to stay ahead of the curve through automatic system upgrades.

Use of cloud computing in HR saves costs

It’s surprising that out of the top three reasons of implementing cloud in the HR, lower costs of ownership ranked at third. After all, businesses are all about increasing their bottom lines and profit margins!

This points to a direction where the business leaders are now more worried about improving the qualitative aspect of their HR practices, rather than just focusing on growth numbers. In the long term, it is the easy implementation, quick upgrade, and low maintenance of cloud based HR processes which will result in significant dollar savings. Thus, cost savings to business is a natural corollary of all other benefits that cloud brings to the table.  Still, it is notable that only 14% enterprise moved to the cloud because cost saving was their primary purpose. Others latched on to it, as they realized that cloud offers more than cost reduction.

Other than these primary reasons, some other not so obvious advantages of cloud in HR include:

Impact of cloud computing in human resource management to streamline recruitment process

Recruitment is one of the most important HR functions, and with a number of stakeholders and departments involved, the process is far from simple. Requiring a lot of communication and collaboration between departments, hiring can be painstakingly time consuming at times for the HR. With the deployment of a cloud based recruitment solution, the entire process of hiring new talent which includes sourcing, interviewing and selecting the candidate can be streamlined. An integrated platform takes care of all aspects of recruitment and ensures participation of all those involved with minimal intrusion and effort, essentially cutting a lot of time and resources spent. An efficient employment process also goes a long way in building a positive company image.

(Also Read: How HR Technology can improve candidate experience)

Benefits of cloud computing in HR for talent acquisition

Till now legacy systems were at the heart of the recruitment processes. These software did make the work easy but

Benefits of cloud computing in HR for talent acquisition

owing to their dated functionalities, most of the work still needed to be done manually.  With human element involved, one cannot rule out the possibility of an erroneous decision being made on the basis of poor judgment, miscommunication or personal prejudice. Poor hiring decisions lead to waste of money and time and also put the brand reputation at risk. With cloud based technologies, one can totally avoid these human fallacies and make an informed decision based purely on data. Candidates are screened through a cloud based recruitment management system and the integrated analytics assesses the suitability of candidates through its smart algorithm. Thus, hiring the best possible candidate for an available position has become a lot easier with cloud based apps.

(Also Read: Ways to Improve Talent Acquisition)