Cloud computing has revolutionized the way we do things. The same can be said of human resource management software. On-premise HRMS with installed-only configuration can be a hassle to deal with.

They also require a dedicated IT team, infrastructure, and in-house resources that manage the software. A better solution is to use cloud-based options for your HR needs. This article will discuss the benefits of cloud HRMS and why you should switch from on-premise HR solutions.

Benefits of Cloud HRMS

The Information Services Group conducted a survey back in 2021 to understand the HR management culture in companies. The ISG survey recorded that almost 40% of companies had a data-driven culture in HR, while 46% of the 260 companies were using HR software and hybrid solutions.

The move to cloud-based HR options offers more flexibility to business owners and convenience in HR management and has especially highlighted its importance because of the pandemic. Let’s look at the main benefits of cloud HRMS technology.

Hassle-Free Installation and Agile Framework

Cloud-based HRMS solutions are equipped with an agile framework that offers ease of installation and hassle-free maintenance. Physical installation or on-premise HRM software brings with them several hurdles ranging from hefty investments in workstations to server and data center spending.

On the other hand, cloud-based HRM software programs are hosted over the internet and don’t require extra resources for installation or maintenance. Additionally, you do not need access to a workstation, and the software can be accessed using cloud technology from any device with internet access.

As a result, one of the benefits of cloud HRMS is the agility and convenience it offers business enterprises, so they continue focusing on growth.

Data Security

Data security is one of the benefits of cloud HRMS. Since the company’s HR department regularly deals with sensitive employee and business data, there’s a need for robust data security measures. On-site data centers and servers are prone to security breaches. Cloud-based HRM solutions offer superior data security measures and prevent unwanted visitors from accessing the cloud space.

Moreover, these programs usually have automatic updates, bug fixes, and patch releases to keep your system up-to-date and using the latest technology. Consequently, it becomes easier to prevent security breaches and deal with sensitive information.

Ease of Accessibility

Cloud-based HRM software was a game-changer during the pandemic. Since everyone shifted to remote work, HR management became a hassle. On-premise HR software can only be accessed using in-house workstations. However, cloud HRMS is stored in virtual memory and can be accessed from anywhere in the world.

One of the significant benefits of cloud HRMS is that you’re able to keep track of your company’s employees. You can manage their information, check daily attendance and performance scores, and access various documents using any device from any location.

Similarly, employees can also use the HRMS from anywhere to mark their attendance, apply for leaves, or access payrolls.


Scalability is one of the top benefits of cloud HRMS. As your enterprise grows, changes are required to HRM software to upscale them to manage growing numbers of staff and sensitive company data. On-premise software costs a lot of money to upscale and requires additional hardware infrastructure for integration. It’s not a good choice for businesses looking to increase profit margins and reduce running costs.

Cloud-based HRMS is a good choice if you don’t want to invest in new software every time your staff size grows or reduces. You’ll only need to make changes to your subscription plan by contacting the service provider, and they’ll configure the software for you, to improve the bandwidth or make any other required changes.

Moreover, cloud-based technology enables these software applications to efficiently integrate with third-party applications and services. Consequently, you can enhance functionality using single-platform solutions for all your HRMS needs.

More Feasible Alternative

A cloud-based HRM software is also more economical and feasible for companies. In-house HRM software requires additional costs to run seamlessly. You might be required to purchase a software license and spend extra money on staff training programs to maintain data security.

In contrast, cloud-based HRM software offers convenient payment plans, with monthly, quarterly, and yearly options that you can choose when you first subscribe to the cloud HRMS solution. Moreover, you get to choose the features you want and pay for them accordingly, unlike on-site HRM software.

Similarly, there are no high recurring costs for running a cloud-based HRM software. You will not be required to pay any additional money for installation or regular maintenance. Software updates can either be part of your payment plan or free of cost, depending on the service provider.

Ease of Customization

A good HRM software should be easily customizable to adapt to the changing business landscape quickly. If your HR solution cannot keep up with your business needs, it’s a good time to change services.

One of the benefits of cloud HRMS is the ease of customization they offer. The software is highly customizable, so you can easily make changes, so the solution remains well-suited for company needs. Moreover, it is easy to configure and make new changes to the system. The types of changes can range from enabling specific features to opting for new ones. Like before, you’ll only be required to contact your service provider, and they’ll help you make any changes to the HRMS setup.

Final Thoughts

The benefits of cloud HRMS result in increased employee engagement and sustainable business growth. With the business community actively transitioning to newer technologies, you will need a robust HRMS to manage your employees and measure their performance.

We suggest considering SimplyHRMS by Microsys, the leading software solutions provider. SimplyHRMS is a web and cloud-based HRMS that is simple to use and also cost-effective compared to other HRMS solutions.

Contact us today to learn more and experience the benefits of cloud HRMS!

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