| 30 August, 2023 | 7 Min Read

7 Reasons to Move to Cloud HR Software in 2023

The advent of the internet has changed the dynamics of every industry. However, many businesses continue to rely on outdated HR practices that waste time, cause errors, and slow down operations. Cloud HR Software is the future, and it can help you find and develop the best employees, boost their productivity and cooperation, and make smarter business choices.

Back in the day, HR professionals' role was limited to hiring great people, onboarding them, and giving them the resources for job completion. But times have changed.

The workplace is now global and remote, with new risks and opportunities. Today's workforce wants to experience a more streamlined, efficient, and smooth working culture. They want to see results, and they want to see them now.

According to research, 47% of companies have HR software that is more than 7 years old, and 33% have 10+ HR systems.

With such developments, a traditional human resource process is no longer the best way to address these advances. Companies need to learn about and incorporate new Cloud HR Software that provides a better ROI while catering to the new expectations.

How does a cloud-based HR system work?

Cloud HR Software is a web-based management system hosted on a secure cloud server. It is a centralized system of employee data, payroll, human resources, labor relations, benefits, performance reviews, HR documents, time tracking, and more.

Aimed at improving the efficiency of HR departments of any business, cloud-based HR software allows efficient and cost-effective HR management of all data into a single piece of software that can be accessed, managed, and stored from any internet-connected device. In simple words, it aids in the streamlining of HR by removing the need for costly HR solutions that frequently necessitate ongoing setup, maintenance, and updates from IT specialists, causing a burn in the pocket.

In fact, there are several free cloud HR software for SMBs in the marketplace.

Reasons you should adopt cloud HR Software

Roughly 44% of talent managers look to cloud solutions to increase efficiency and productivity, while 35% see the cloud as a way to reduce costs.

So, if you are unsure about how cloud-based HR solutions can help? Or, perhaps you are looking for reasons to justify the cost of this investment; here are some of the best and most compelling reasons to use cloud-based HR Software.

1. Integrated recruiting tools

Today’s job market is more competitive than ever. To attract and hire the best talent, you need a clear strategy. A streamlined recruiting process with the right tools can help you stay ahead of the competition and find the best candidates for your open positions.

With cloud HR software integrated hiring tech stacks such as offering a custom branded career page, a customizable recruiting pipeline, social media job posting, applicant tracking, automated offer letters and onboarding, and more, it becomes easy to find, screen, and evaluate top candidates.

Nowadays, some ATS and recruitment software integrated with Artificial Intelligence (AI) help you parse CVs and build candidate data houses. That means you can hire faster, find the right person for the right role, and reduce your hiring time.

You can focus on what matters most and leave the rest on the cloud HR software with every step.

2. Enhanced employee engagement resources

The phrase “employee engagement” gets tossed around a lot these days. It’s become a buzzword and a sales pitch. However, employee engagement is a vital business issue and not just about making employees feel good about their jobs.

Many companies have invested a lot of time, money, and resources, but the results have been underwhelming. The reason for this is the lack of appropriate resources. You can fix this engagement gap and boost employee morale by investing in HR cloud software, particularly an employee engagement app that helps efficiently manage the employee lifecycle with tools like company social feed, interest groups, peer recognition, feedback, and surveys.

3. Centralized employee management

As of 2020, over 80% of Fortune 500 companies now have their HR team operating solely in the cloud, and the majority of these companies are increasing their use of cloud-based HR software.

The growth of cloud-based HR software is due to many factors. First, cloud HR allows for a consistent user experience among all users. In addition, companies can quickly scale their HR functionality to match their workforce as their needs grow within the company.

When you centralize employee management, you bring all of your employee-related processes, software, and employee data under one roof, which gives you much greater control and access to information. This makes it easier to respond to changing business needs and avoid costly mistakes. Employees can also manage, track and analyze their performance data using our employee self-service feature.

4. Onboarding tools with device accessibility

Compared to firms with bad onboarding strategies, companies with solid onboarding procedures have 2.5 times greater revenue and 1.9 times the profit margin.

The first few steps are critical when it comes to onboarding. If a candidate can’t get through the pain barrier, they’ll leave. That’s why it’s so important to make sure your new hire receives a seamless and fast onboarding employee experience.

By providing a tailored onboarding experience,  like what Grove HR offers, HR is able to reduce the burden and complexity of employee onboarding. Additionally, employees and managers can perform onboarding on autopilot, use customized onboarding templates and checklists, create reports, enable self-onboarding, and invite them using a pre-recorded video.

So why wait when it’s worth it to invest in tools that help you onboard more effectively?

Grove HR - Employee Onboarding

Track all new hires' onboarding progress at a glance 


5. Automatic payroll preparation

Automated payroll is a cloud-based service that allows businesses to automate their payroll process so that HR professionals no longer have to worry about manual calculation of employees’ pay. With automated payroll, you can get all inputs to calculate salary, such as time attendance, time off, allowances, and so on; then, it will be easier for you to continue further steps with taxes and insurance. 

In addition, with technology and cloud-based clubbed-in-one software, employers can calculate employees' gross pay, customize payroll structure, review, double-check correctness, and make quick modifications. Upload, evaluate, and deliver the correct payslip to the right individual - by email or mobile.

6. Performance enablement & reporting

According to market research firm IDC, companies lose 20 to 30% of revenue every year due to inefficiencies.

Employee performance is an integral part of any company’s success. Poor employee performance can lead to lost revenue, high costs, or even legal issues. To keep employees motivated, productive and happy, it’s essential to find the right balance between providing them with the resources and support they need to succeed and holding them accountable when they don’t.

Leveraging performance management tools and techniques by using free 360 feedback tools can help managers improve performance and build high-performing teams. The tool allows to conduct 360-degree qualitative self, manager, and peer reviews using in-built review templates, automated review schedules, and reminders, and keep a close eye on the review process.

We collected 20+ free productivity apps for individuals and team collaborations.

Grove HR - Self, manager, peer reviews

Collect self, peers, and manager reviews for more objective evaluations


7. Simplified time attendance

Time attendance is one of the most fundamental administrative functions of any company. It is used to keep track of the number of hours that employees have worked. Unfortunately, traditional time attendance is clunky, complicated, and prone to human error.

Thus, a simple time attendance system that allows time tracking via QR code clock in/out, geofencing capabilities that guarantee remote/hybrid employees can only punch in and out inside a set boundary, and mobile-enabled clock in/out for further flexibility.

It also offers a mobile app that allows managers to collect timesheet data, supervise employee attendance, and set work schedules anywhere.

Empower & enable employees with centralized cloud HR Management

With the help of cutting-edge HR cloud technology, human resources have never been easier to manage. At Grove HR, we help small businesses manage employee needs— from recruiting to payroll to benefits administration—through our award-winning software.

Cloud HR Software is intuitive, easy to use, and highly customizable to fit the needs of any business. With an HR platform demo, you can see how the software works, and how it can improve your workflow and save you time.

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Reduce manual effort with automated HR processes

  • Reduce manual effort with automated HR processes
  • Automate attendance and time off.
  • Conduct 360-degree performance management easily.