Human resource software helps businesses complete vital scheduling, performance tracking, recruiting and payroll tasks. If your company needs it, you have two major options: you can install conventional computer-based applications on your local network (i.e. PCs or network servers) or access web-based HR software through your browser.
TechTarget reports that many corporations have switched to cloud-based HRIS systems in recent years. In fact, cloud-based HR software topped the list of our study on HR software buying trends. These include well-known companies like Equifax, Twitter and Hewlett-Packard. Online human resource software appeals to numerous small firms as well.
Nevertheless, it’s crucial to consider both the pros and cons associated with web-based HR software.
Web-Based HR Software Advantages
1. After your business signs up and pays for this service, staff members can begin using online programs immediately. There’s no need to download huge files and run installs. If a computer already has a compatible Web browser, you probably won’t have to install any new applications to get your HR software up and running.
2. You can use cloud software on PCs in any location with an adequate Internet connection. Some providers also offer smartphone or tablet access. The system stores all human resources information on a central server, so your data is always available as well. Consequently, you won’t need to copy files or applications from one computer to another.
3. Most cloud software developers regularly create backups of HR files. You’re unlikely to experience significant data loss if a provider’s server fails. Likewise, you won’t lose information when an office computer’s hard drive ceases to function. A staff member can immediately switch to a different PC and continue working.
4. Web-based programs automatically stay up to date. You don’t need to manually download updates or install them. This enhances reliability and saves time. It will also help your company comply with new labor regulations. In 2015, the Society for Human Resource Management reported changes to numerous laws regarding employee privacy, sick leave, wages and tips.
5. If you want to use the latest HR software every year, you’ll probably spend less on a Web-based system. This option involves a smaller initial investment. Furthermore, it will cut labor costs because employees won’t need to waste time installing or maintaining these programs, along with mitigating the risk of it becoming obsolete with changes in operating systems.
6. Cloud-based human resource applications usually offer a better solution for businesses with locations in multiple countries. Most programs allow users to select one of several languages. The system also centralizes data and makes it easy to access from offices around the world.
Web-Based HR Software Disadvantages
1. A downside of online file storage and global access is that they increase the risk of data breaches. All HR information must travel through the Internet before it reaches a cloud-based server. Although security software and encryption minimize the risk, it’s not impossible for hackers to intercept confidential data.
2. Web-based programs make your business more dependent on the Internet. When an outage occurs, you’ll completely lose the ability to access human resources data or perform HR tasks. This drawback causes more problems for companies in regions with frequent severe weather, especially if they use satellite or cable Internet services.
3. Cloud HR software has the potential to change in undesirable ways. For example, the provider could raise its yearly fee or require a new browser that necessitates hardware upgrades. Your business can permanently acquire the current edition of a computer-based application by making a one-time payment, so costs are more predictable. This software remains the same unless you decide to replace or update it.
4. Some companies find it difficult to integrate online HR systems with related business applications. This usually happens when they use cloud software from multiple providers or continue to run certain computer-based programs. It’s important to investigate the compatibility of different applications before attempting to use them together.
When both options supply equivalent features, cloud HR software generally delivers the most benefits. It offers much greater flexibility and convenience. Nonetheless, traditional computer-based programs still provide a better choice for companies with unreliable Internet connections. They also give businesses more control over HR data and software configuration.