The Benefits of Cloud-Based HR and Payroll Software Solutions

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Written by Nikki Joy Baeza

Explore the benefits of cloud-based HR and payroll software and how it can help create big changes for your small business.

Benefits of Cloud-Based HR and Payroll Software
Benefits of Cloud-Based HR and Payroll Software

At the onset of the pandemic, many workplace trends emerged for businesses to continue operating across the world. One of which is the increased adoption of digital technologies in businesses. In today’s conditions, the question is not just whether or not your company delivers products and services. 

Now, the challenge is for companies to catch up with the speed, accuracy, and efficiency that today’s world requires. Given this, automation has become one of the most valuable investments businesses can make, especially in managing resources. One such example is the rise of cloud HR and payroll software. But how do they actually work and benefit you?

What is cloud HR software?

Cloud HR software or cloud-based HR software transforms many aspects of traditional human resources processes using cloud technology. It consolidates all HR documents, data, and functions in one place. Furthermore, cloud-based HR software can help automate core HR functions and speed up processes from hiring to retiring employees and everything in between.

What is cloud payroll software?

What is cloud payroll software?
What is cloud payroll software?

Simply put, a cloud payroll keeps all employee information in one place and processes complex salary computations in a matter of seconds. Furthermore, most cloud payrolls are also connected to a timekeeping feature that provides real-time statuses of employees. This way, employers can do more than check attendance and keep track of worker activities.

All these recent advancements in HR tools are mainly driven by the growing community of remote workers. HR professionals need to manage a team of people scattered across different cities. With cloud software solutions, HR teams are more equipped with a management system that does not compromise communication and teamwork.

What is included in cloud HR and payroll software?

What is included in cloud HR and payroll software
What is included in cloud HR and payroll software?

While cloud HR and payroll software solutions vary, there are common features that effective HR systems should have. These features include payroll management, employee management, self-service portals, and reports.

Payroll management

Payroll management is the entire process of calculating and distributing salaries to employees in the most accurate way possible. And because it concerns money, payroll is often a tedious task composed of repetitive computations and a pile of data to organize.

That said, pay computations need to be reliable and up-to-date to keep employees satisfied. Fortunately, most payroll management software can now complete complex tasks in a matter of seconds. And it is all thanks to cloud technology and automation.

Accordingly, payroll software often comes with timekeeping and attendance applications. This way, it can track and record employee data in real-time. Once the time-tracking platforms collect the information, it can be accessed and calculated in one place.

An efficient payroll management system accomplishes the following tasks:

  • Compute gross pay
  • Calculate and withhold deductions
  • Process bank forms
  • Comply with tax

Employee management

Employees play a crucial role in your business because it is ultimately the results of their labor that affect the bottom line. In other words, it is an essential part of HR management. Therefore, it is also crucial to managing employee performance so that your business efficiently handles your talent pool.

As with payroll, automation has also transformed employee management. With more centralized and organized data, businesses now have access to analytics. As such, managers and business owners can make more informed decisions.

Employee management software helps bring efficiency into the company’s fundamental HR processes. It manages and directs employees’ activities as required by the company. Additionally, it securely maintains and retains your workers’ personal and other work-related information. As a result, it is simpler to store and access data when needed.

In general, employee management should include the following features:

  • Employee database management
  • Time and attendance management
  • Online backup
  • Mobile adaptability

Other systems may also include a platform for performance reviews, people analytics, benefits administration, and onboarding management.

Employee self-service

In traditional human resource settings, most HR tasks would most likely be catering to workers’ requests. These include pay slip requests, filing leaves and overtime, and updating personal information. Other systems may also include a portal for reimbursements and worker benefits.

In summary, cloud HR software with an ESS delegates tasks to employees. As a result, it significantly reduces the administrative tasks shouldered by the HR department. In addition, this HR solution also accomplishes staff requests faster without compromising sensitive information.

Aside from making this information available for employees, self-service portals also make sure they are easily accessible and fast. That said, most HR solutions software are available for mobile with an ESS portal that usually includes, but is not limited to the following:

  • Viewing and downloading pay slips
  • Filing leaves
  • Clocking in and out
  • Shift schedule and calendar of holidays
  • Employee profiles
  • Employee documents


Without knowledge of their own organization, HR stakeholders find it difficult to make educated business judgments. This is where storing information in a cloud is, again, beneficial. When you store information online, your HR software can process data and provide analytics as they come in.

From there, HR professionals can generate reports as needed. For the purpose of making well-informed decisions, HR reports offer both quantitative and qualitative data on workers, HR procedures, and even business trends.

With robust analytics and effective reporting, HR can have a better analysis of what has occurred as well as predict what will happen in the future. This is why HR reporting is so important since it offers the knowledge required to make wise business decisions and boost performance throughout the entire firm.

An efficient HR reporting must have the following:

  • Accurate data
  • Well-connected data
  • Industry knowledge
  • Well-trained HR team
  • The right HR software

What is the advantage of cloud-based HR and payroll?

What is the advantage of cloud-based HR and payroll?
What is the advantage of cloud-based HR and payroll?

There are many advantages to adopting a cloud-based HR and payroll that benefits your HR team, employees, and the organization itself.


For one, a cloud-based HR significantly reduces paperwork. Opting for a cloud-based HR and payroll system means saying goodbye to days of photocopies and filing cabinets. Saving information in the cloud allows members of your organization to look up data anytime and anywhere with internet access. And since your information is stored online, it cannot be easily damaged like physical files normally would.

Second, cloud-hosted HR software also saves time and resources. Compared to on-site or on-premise HR management systems, cloud HR software is also more flexible. Having a third-party host maintain your cloud HR software unloads your internal team of the task of maintaining the resources.

Accurate and Real-Time Data Processing

With cloud computing and automation, worker information is also more accurate. Updating worker information has never been easier, and any changes in the information can be reviewed by both the company and the worker, ensuring only factual data is stored within the system. Cloud computing and automation also allow HR to let employees add or edit certain information while also maintaining confidentiality on sensitive information.

Cloud-based HR system enables data to be processed in real-time. Once the data come into the system and is completed, all necessary processes are conducted simultaneously behind the scenes. For example, as soon as the daily attendance and time worked by the employee enter the system, computations involving that information are performed instantaneously and changes are affected in the employee’s information immediately.


Decision-making is a crucial part of running a business. Wise and effective decisions are the key to moving forward and success. Wise decisions stem from getting essential information about the business and the industry. Cloud-based and automated systems readily provide reports that are easy to comprehend and clearly reflect the trends of the business through well-created charts and graphs.

Cloud-based HR management solutions have charts and graphs modified to reflect what the business wants and needs, with as many factors or elements as they can accommodate in real-time. With the use of charts and graphs, decision-makers can easily see trends in sales, like the fastest-moving products and months with the highest revenues.


Having a system custom-built for your own company may be a hugely expensive undertaking that is sure to bore a hole through your budget. From development to deployment and personnel training, it costs not only money but also time. Employing the services of cloud-based HR software is more affordable than having a system custom-built for your business or hiring an HR and payroll provider.

Cloud-based HR system offers greater flexibility and value for a cheaper price. It provides reliable data recording and safekeeping and allows for better time handling and saving. Cloud-based HR also has no need for upgrades and much maintenance. This permits more time and money to be allocated to other key parts of the business.

Cloud-based HR and payroll software advantages
Cloud-based HR and payroll software advantages

Easy On-Boarding

A company’s workforce is one of the most important factors in a business’s success and longevity. That is why the onboarding process is usually a long, tedious, and difficult process for both the applicant and the employer. The ones in charge of hiring workers, usually the HR team, must make sure that the people they hire have the necessary skills and the appropriate characteristics and attitudes that will strengthen the company and submits the proper documentary requirements. Hopeful applicants, on the other hand, must go back and forth to take examinations and interviews with the company they are applying for, aside from making sure they have all the necessary documents.

With cloud HR, all or most parts of the onboarding process can be conducted online through the system with little intervention from the HR team, if needed. Each applicant must only be registered once to have an account, where all their exam results and submitted documents can be consolidated. All documentary requirements can be uploaded to their accounts without leaving their homes, and can also be viewed by the employer anytime. Those hired by the organization keep their accounts. Orientation and seminars may be uploaded to the system and accessed by newly hired employees.

Easy Access

Aside from being costly, offline custom-built HR and payroll systems, or on-premise HR and payroll systems, can only be accessed while on the premise where the software is installed. This can be inconvenient when trying to extract information from your system for emergency decisions or situations, or even just for real-time viewing outside of office hours. Also, if the business is to expand into other branches, the installation process would have to be conducted all over again.

Cloud HR allows access to the system from anywhere at any time of day, given that the device used to access the system is connected to the cloud. This is advantageous when you want real-time monitoring of your numbers, like sales and inventory. This easy access also allows the HR team to manage employee information easily.

How to choose the right cloud HR and payroll software?

How to choose the right payroll software
How to choose the right payroll software

Business Needs

One of the primary considerations in choosing the right cloud HR and payroll software for your business is the needs of the business itself. The software must be able to provide a solution to the current problems the business is facing regarding HR and payroll matters. Its functions and features must be reliable, efficient, and reflect the identity of the business.

Software Cost

Having the best-suited HR and payroll software is one of the best assets the business can have. It might cost more than a little pocket money, but the benefits really outweigh the drawbacks, especially in the long run. However, the most expensive software in the market might not be the best fit for your business. And it might just burn a hole through your budget without giving you what you really need. For instance, you should clarify whether there are any additional charges for some functions and features and support or maintenance services.

Software Usability

The market now holds so many different HR and payroll software. So many that it has become quite a feat to choose the best fit for your business needs. One factor to consider is the usability of the HR and payroll software. No matter how good the design is, if the software is hard to comprehend and difficult to use, it will only be a liability. Difficulty to learn and use the software may lead to errors that can hinder the business or set it back. The HR and payroll software you choose for your business must be easy to comprehend, learn, and use.

Support Services

One more thing to consider in choosing the right HR and payroll software is the availability of the support services and to what extent. This is an important factor to look out for, as unsolved issues with the system when it is in use may be detrimental to the business. Some issues with software may only be easily remedied by the developers, which is why good support service is essential.

Cloud HR and Payroll for your micro or small business

Make your HR processes more accurate and save up on resources with eezi‘s cloud-based HR and payroll. See more ways how our cloud solutions can transform your business.

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