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October 22, 2018

How Is Cloud Computing Changing Human Resources?

By Special Guest
David Fournier, Correspondent

Cloud computing has been the talk of the town for the past decade. Along with artificial intelligence and machine learning, it’s having an impact on everything a small business does in the world. This includes Human Resources.

Small and big businesses are using technology to their benefit in many areas, from marketing to accounting. Now many organisations are realising the value of using cloud computing in the HR department. With the help of cloud computing and software, companies are able to improve performance, benefit from high-quality talent management and to do so without extra costs.

So, what are those key areas of impact when a small business implements the use of HR software in the cloud?

Improved communication

The big factor is how cloud computing simply makes communication easier. Small business HR software that’s in the cloud will allow the HR department to seamlessly communicate with any other department within the organisation. Communication with other parts is easier, faster and this will improve overall happiness and organisational effectiveness.

Cloud computing makes data centralised. Instead of having one part of data in this department and some of it in another, HR professionals and other business operators can access it whenever and wherever. The flow of information is not stifled with physical barriers. Improved communication will mean:

·     Enhanced decision-making across the organisation

·     A better understanding of the current employment situation, both in terms of recruitment and retention

·     Wider transparency which can generate more trust

·     Boosts in employee management and happiness

Easier access and more flexibility

Cloud computing will also improve HR management by making access to data easier and more flexible. In fact, the correct small business HR software can allow HR professionals and employees to manage data and information without many restrictions on how and where they do it.

The user experience is simpler, mostly driven by access to data and the flexibility in using the software. Cloud computing removes the barrier to accessing and managing data. It’s because the system allows anyone within the organisation to be part of managing data. Employees, therefore, have more power in controlling and being part of the HR decisions the company makes.

Continuous software development

Small businesses have to compete against big companies with fewer resources. This has been a problem in the past in terms of HR and technology innovation. Many companies might not have had the initial investment to put in place to stay on top of the best small business HR software. But cloud computing changed it.

Since the software is in the cloud, it can be updated and upgraded instantly. You can start with catering to your smaller needs but include more features as the business grows. You can find solutions to payroll, recruitment and talent management without having to invest in all at once or buying software that’s aimed at big corporations.

What’s more, cloud computing gives access to new innovation much cheaper. Most of today’s small business HR softwareallows you to test drive it – if it doesn’t work with your business, you can stop using it.

Better cost-effectiveness

All of the above also doesn’t mean higher costs. It’s easy to think that such innovation and improvement would result in higher costs but cloud computing has actually done the opposite. The cloud computing HR software you can use will be cost-effective and uniquely tailored to your business needs.

There are a few major reasons for lowering costs while improving effectiveness. These are:

·     You don’t need to invest in infrastructure and hardware.

·     You don’t pay extra for maintenance because it happens in the cloud.

·     You don’t have to pay for things you’re not using.

A small business can enjoy the same benefits that big business can without having to pay extra for it. In essence, this will make it easier for small business to compete for talent – your HR will be just as good, if not better, than that of big business.

Pay attention to security

Overall, the benefits of cloud computing to small business HR are immense. This doesn’t mean that cloud computing wouldn’t come with challenges. The presence and reliance on the cloud does mean security problems and solutions are slightly different.

But much of this can be avoided with the right vetting of the software you use. Software with the highest level of encryption, support and compliance will guarantee data is safe. When selecting the HR software to use, the focus must be on security and your business needs. But overall, cloud computing will provide a new and improved HR experience.

Edited by Ken Briodagh

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