At the modern workplace, Human Resource Management has become a critical tool. It deals with matters such as the salary of the employees, appraisals, progress, their working hours and attendance, and even the recruitment processes. With technological advancements it becomes inevitable for organizations to switch from the on premise Human Resource Management to an appropriate Human Resource Management Software on the cloud, for multiple reasons. Cloud HRMS systems not only ease decision making for the HR/Manager, but also serve as an employee-friendly platform as it is mobile-centric and easy to use, on the go.

Any company can choose from three types of software for the HRMS depending upon its requirement- Core HRMS, Strategic HRMS, and Integrated HRMS. The difference is in their functions and features. A Core HRMS is more suitable for startups and small businesses as it looks over the primary functions for managing the workforce such as the administrative functions like payroll, attendance tracking, workforce planning, and regulatory compliance.

However, the Strategic and Integrated HRMS platforms take care of recruitment, and other HR functions along with administrative functions. Now, these softwares are available either on-premise or on Cloud. An on-premise format limits the management within the four walls of the office. People can gain access to the information only through the main server in the office. This has more disadvantages than advantages when compared to the cloud-based format.

The edge than a cloud HR management platform provides is that, all the features of an on-premise are available with an instant access from anywhere, any time. Thus, cloud based HR software has several advantages.

Some of the top reasons to choose Cloud HRMS system are:


Cloud HRMS is a software which can be accessed from any place, through any device with an internet connection. It is very useful for MNCs where the employees maybe working in different/remote locations. Also, when there is an urgent task to be completed and the employee may not be in the office.

Saves Time:

Feature-rich Cloud HRMS offers tools for internal collaboration, travel and expense claims, attendance management on the go. This considerably saves resource time. Also, with the historical data available for employees, the HR does not have to get into administrative functions.

Data Security and storage:

With cloud, your employee data is stored safely and doesn’t need a regular back-up.


A cloud-based system has the advantage of customizing interfaces which helps in selecting useful and relevant features.

Easy collaboration:

This system also provides a feature of easy communication throughout the company, irrespective of the department. This helps employees to share information, create groups and even communicate urgent messages.

Thus, any system is useful depending upon the needs of the company. But, if you have a large scale or a multi-national company, a cloud-based HR management software is a smarter choice.


With the rapid pace at which small businesses are growing, and people moving in and out of these businesses at an even greater speed, especially in startups, it gets difficult to tackle the entire HR Management process. A Cloud HR Management System can help an organization take care of these functions, including payroll management, leave tracking, recruitment planning and much more.

The most essential feature of an efficient cloud based HR Management System is the ease of operation. Along with this the other factors that one must consider are – storage, security and efficiency.

Below are some of the most important features to consider, that will help an organization select the best Online HR Management Software in line with their requirement.

  • Data Management: The basic objective of using a Cloud HR Management System, is to simplify your employee data storing and management process. The HR System should eliminate difficulties and should be able to store vast amount of data. It also needs to be scalable in nature.
  • Easy interface: A complex system will require you to spend time in just getting acquainted with and take even longer to plan and manage HR tasks. You should invest in an Online HR Management software whose interface can be navigated easily without much trouble, so that you spend less time in setting up the system and receive instant benefits.
  • Software Reliability: An efficient Cloud HR Management System should be reliable and have a software that is made as per the best coding standards, that ensures unmatched experience for the users and performs well in the long run, free from glitches and any other issues.
  • Ease of Accessibility: As these HR Systems are cloud based, it becomes easier to access the HR Management System at any moment from anywhere. It saves a lot of time in trying to track down the data, if a person is not available, but with the online HR System, it can be retrieved anytime easily.
  • Enhanced Security and Privacy: The data which is entered in the system should be stored in a safe place with high security, while at the same time the company shouldn’t have to worry about taking backups on a regular basis. Stability of data in case of unexpected issues like crashes, should be ensured. An efficient cloud HR Management System always makes sure that the data is safe.
  • Easy collaboration: Other than data storage and security, an efficient human resource management software has a feature which allows easy communication throughout the company irrespective of the department that they are in. Employees should be able to share information, create groups, communicate urgent messages instantly.
  • Cost Effective: All the companies work towards eliminating unwanted overheads so that they can reap maximum benefits. A good HR Management System should be within reasonable operational costs, which gives efficient results while allowing you to have higher profits. In addition to this, a good HR software, would have less maintenance cost, thus saving you from spending endless money on maintenance.