Seven reasons to choose a cloud HR system



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7 mins

Choosing a cloud HR system won’t only give you access to vital HR data on the go, it’ll also improve your organisation’s efficiency and data security

Think about your HR system and what words you’d use to describe it. Is it inefficient? Non-compliant? Out-of-date? Expensive? If these and a few other negative idioms make your list, then it might be time to switch to a modern cloud HRMS system.

What is cloud software? What is a cloud HR system?

Cloud software is hosted on the system provider’s server and can be accessed by users on any internet-connected device. Rather than paying a one-off fee to use the software, you’ll typically pay a monthly or annual licence charge.

A cloud HR system is HR software that is hosted on the cloud. It unifies your data on a central platform that makes for quicker and better HR data management – and it should handle all aspects of your HR processes, from online recruitment to training and payroll.

Changing your HR system is a significant decision to make, but making the switch to modern cloud HR software, or from your legacy on-premise HR software to a new SaaS (software-as-a-service) HR system should bring a great number of benefits to your organisation. Here are just seven of the top reasons why you should choose a cloud HR system.

Why choose a cloud HR system?

1. It’s accessible any time, from anywhere

This is one of the biggest advantages of choosing a cloud HR system. You employees can access the information they need anytime, anywhere. All that’s required is online access and, in some instances, use of your organisation’s VPN (Virtual Private Network).

This allows your staff to be more dynamic, making more effective decisions on behalf of your organisation. You may find this to be a great asset if you have a multi-branch structure, where a sizeable proportion your people work remotely, work off-site, or are not desk-based.  Even your desk and office-based employees will enjoy the option of accessing your HR software from their preferred device.

2. Your data is securely stored in the cloud

This is a significant concern for many organisations contemplating a move to a cloud-based HR system. Many will ask how data can be made available only to those with authorised access, and what safeguards are in place to stop hackers from stealing this information.

Since nearly all HR operations are data-driven, it’s imperative these details are safe – especially since this will include bank information and national insurance (NI) numbers, for example. Yet it’s the responsibility of your cloud HR system provider to ensure the latest security mechanisms are in place (not your organisation) are updated when required, and is culpable should a data breach occur.

Want reassurance? Then search for an HR software vendor like Ciphr that’s ISO 27001 accredited. This is the benchmark for IT security, cybersecurity and privacy protection, and is crucial for companies as this keeps them safe. This is the best-known standard for information security management systems, with best practice for data protection and cyber resilience covered.

3. Software updates are managed by your vendor

Think HR, think compliance. One of the top advantages of having a cloud HR system is that your software updates will occur automatically – removing the stress and worry that comes with having to manually maintain an HR system so that it complies with the latest regulations.

With data-security legislation evolving frequently, organisations need to be able to produce comprehensive reports frequently and demonstrate their software is compliant. Your cloud-based solution will be a benefit here, since it will be maintained by your chosen vendor – whose team will regularly update your applications to conform with these regulations. Chances are there’s an advanced reporting function within the system, too, so generating reports becomes an easy task.

4. It can scale quickly and easily as your organisation grows

Since your cloud HR system will be flexible, it can keep up with the growth of your business. The result: you can add to the number of licences and modules you choose to have without needing any additional hardware, or be concerned about load testing.

Using a cloud-based system means you can increase or decrease its scale, depending on your business requirements. Not only will this add freedom to your organisation, but it will also boost the overall efficiency of your organisation and employees.

5. Simple integration with other third-party applications

On-premise HR software can be difficult to integrate with other applications. However, many cloud HR systems will have open APIs (application programming interfaces) so they can be integrated with other applications. This seamless capability will reduce function redundancy, and also eliminate data isolation from different departments since access to this information is in a single portal.

Cloud HR software makes it easy to keep up to date with the latest technology, too, as cutting-edge apps can be added through these secure APIs or plugins – so you can keep innovating as you add more functionality to your system. Applications that Ciphr’s cloud HR system integrates with include, for example, Adobe Sign (for electronic document signatures), TrustID for right-to-work checks, and Power BI (for business analytics).

6. It’s easier to use than outdated on-site solutions

We know a cloud HR system receives automatic updates, but how does that benefit your team? It’s that word again: compliance.

Although your vendor will ensure data privacy, it’s HR that’s ultimately responsible for compliance because it’s your team that identifies pertinent policies and processes so the workplace has a thorough awareness of relevant regulations. So the automatic updates your vendor will implement offer you a great advantage over an on-site solution that takes time to upgrade.

7. There are more opportunities to automate tasks

Feel like there’s potential to streamline your processes? Cloud HR systems can do this effortlessly for your data-heavy activities. Some of these tasks may include timesheets, holiday requests, sick leave notifications, performance reviews and employee information updates.

Let’s take timesheets as an example: digitisation here means it’s easier to calculate salaries and taxes with just a few simple codes. Without this option, calculations can be cumbersome unless you’re using certain tools.

Using a cloud online HR system will eliminate extensive paperwork, as well as data errors and inconsistencies – Ciphr HR, for example, can help automate the set-up of new system users through its integration with Microsoft Active Directory. And, as an added bonus, this will lead to a better digital experience for employees, and improved satisfaction.


If your on-site HR software is more problematic than performance-enhancing, then now’s the time to consider a cloud-based solution. Not only will moving to this type of system improve compliance and accessibility, but it can also boost satisfaction and efficiency. Contact Ciphr to arrange a demonstration of our cloud HR system, and experience how it can integrate with your other business tools to boost productivity and improve compliance. If you’re not sure what functionality you might need in your next HR software, why not take a look at our HRIS requirements checklist for help?