How a cloud-based HCM software can boost the operational efficiency of your HR department

Oct 28, 2020 2:51:52 PM

How Cloud HCM can improve HR productivity

In the past few years, we have seen an explosion in cloud-based software for all business needs. Companies like Salesforce provided incredible value to their customers through their cloud software and Software as a Service (SaaS) model. Older companies like SAP and Microsoft have transitioned to the cloud-based offering as well.

In this article, we will explore how a cloud-based HCM might help you.

What does Cloud-based HCM mean?

Traditionally Human Capital Management (HCM) software used to be purchased and installed on an organization’s servers. It used to be a monolithic system that was not easy to change or scale. Thanks to the advent of cloud computing, the new cloud HCM software offers incredible flexibility and cost efficiency that was not possible with traditional HCM software. Read on to find out why you need HCM.

Also Read: Why do you need cloud-based HRIS for your organization?

How cloud Human Capital Management improves HR department

Cost efficiency and scalability: As we mentioned Cloud HCM uses the SaaS model, this would mean that your upfront costs of setting an HCM system are greatly reduced. You don’t have to maintain your servers. Your hardware cost and maintenance costs are also reduced. This makes scaling your HCM a lot easier.

Customize to your business needs: A startup has different needs from a large organization. Cloud-based software allows each organization to adapt to their requirements. And as the organization evolves, the system evolves as opposed to migrating to a different system.

Faster and better software: HRM is no longer bottlenecked by the server’s capacities. This means that the software performs better even with a lot of data and also distributed teams can work more easily. 

Machine Learning (ML) and Artificial Intelligence (AI): Cloud offers incredible computational power. A cloud HCM can leverage ML algorithms to analyze data for better insights. ML can provide insights that can improve hiring decisions and insights from employee data like surveys which help define better policies. Employees can interact with AI-powered chatbots that provide instant answers to their queries. Your employees are better served and HR professionals have more time working on more time-intensive tasks like recruiting.

Ease of access: Older software was restricted to just the desktops. Using cloud-based HCM software employees access their information right from their smartphones. This makes it easier for HR professionals and managers to approve requests as well. It also increases employee efficiency and engagement. 

Access to the latest software: In a traditional HCM, you pay your vendor for additional updates or newer versions of the software. If you use a cloud-based HCM you can be confident that you always have access to the latest and best version of your HCM.

Security: Your HCM holds confidential and critical information about your organization. A traditional HCM holds all your data on a local server that might be susceptible to attacks. Your data is also at risk from any physical damages to your servers like earthquakes. Cloud HCM stores your information in data centers that have better security from both cyber threats and natural calamities.

Compliance: An organization with offices in multiple countries, needs to adhere to the local laws and regulations of each country. By using a cloud HCM, compliance with the laws of each country becomes smooth and manageable. 

Also Read: Unlocking business success with a custom HRM software


Successful management of your workforce amid the growing competition can prove to be stressful. Clouds are the future. This post establishes how a cloud HCM improves the overall productivity and operational efficiency of your HR department.

The right cloud Human Capital Management not only helps you simplify your daily tasks but provides a great experience to your employees too. Manage performances, employee engagement, law and compliance, and more evolving HCM trends all in one place.

If you are looking for a scalable tool that integrates functions such as payroll, attendance and more then let us help you. Contact our team of experts here to find the right cloud solution suited to your needs. 

Topics: CloudOps

Devi Singh

Written by Devi Singh

Content crafter at Daffodil. Eager to bring the latest ideas and developments in technology.