On-premise vs cloud-based HRIS solution: The efficiency question

As a proprietor, selecting a suitable HRIS solution is one of the most critical business decisions. No individual solution is ideal, as every organisation has its own set of challenges and objectives to meet.

There is much to consider when making this choice, primarily between opting for an on-premise or a cloud-based solution. Before taking that leap, step back and think of what you want to achieve from your HRIS solution:

  • Record and manage HR data in one secure location; and/or
  • Implement stronger data privacy and protection controls; and/or
  • Automate routine administrative functions; and/or
  • Build a great company culture (yes, it’s possible! We’ll get to that shortly.)
 
On-premise vs cloud-based: What works and what doesn’t?

Over the years, advancements in cloud technology capabilities have re-configured comparisons to on-premise solutions. Here are the key factors to bear in mind:

FactorsOn-premise solutionCloud-based solution
Infrastructure
  • Involves procuring and deploying technology and allocating physical space for operations
  • Requires a stable internet connection
Setup cost
  • High capital investment in purchasing equipment and hiring IT personnel
  • Low setup costs, as it entails a subscription-based license fee; usually paid monthly, quarterly or yearly

 

Recurring cost
  • Includes ongoing maintenance costs, staff training and system upgrades
  • Subscription fee is the only recurring cost

 

System updates
  • Primarily takes place quarterly, half-yearly or annually; this requires system downtime
  • Automatic, frequent updates (typically on a fortnightly basis) with minimal impact on business operations
Data protection and security
  • Difficult and expensive to implement advanced security features. Plus, time lag between server updates can adversely impact data protection and security capabilities
  • Robust security controls in place to ensure the protection of large amounts of user data
Third-party integrations
  • Customisable to facilitate integrations during the setup phase. However, it is time-consuming and expensive to achieve this post-implementation
  • Seamless integration with external, third-party software providers at any stage
Compliance
  • Limited infrastructure and pre-defined capabilities may require additional configuration, time and resources to meet new compliance requirements
  • Agile, scalable solution enabling ease in meeting new compliance requirements

 

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Cloud-based HRIS solution: What to expect

If the comparison above determines that a cloud-based HRIS solution is better suited to organisational needs, here are the key differentiators to bear in mind when selecting your technology partner:

Automation

Cloud-based HRIS solutions are excellent to build “set and forget” triggers that automate routine and time-consuming tasks. However, most solutions are primarily developed to boost efficiencies in HR departments.

New cloud HRIS platforms, such as Flare HR, go a step further by not only optimising HR productivity, but boosting employee engagement. These end-to-end solutions approach HR automation from an employee’s perspective – right from their onboarding journey to securing long-term financial wellbeing – thereby, removing paperwork, cutting time spent on administrative tasks and driving higher productivity.

It allows your HR personnel to focus on strategic tasks, such as forecasting workforce requirements, implementing training & development initiatives and enhancing employee engagement. Combined, you will reap the rewards of overall efficiency, whilst improving the bottom-line and creating an excellent company culture.

Security and Compliance

These are two of the major concerns when selecting a technology provider to accelerate any business function. HR departments hold large amounts of sensitive employee and organisational data which, if compromised, can irrecoverably damage employer-employee trust and brand reputation.

When selecting a cloud HRIS provider, ensure that they have robust data security and protection features in key areas, including solid encryption techniques, strong data protection policies, disaster recovery plans and business continuity plans.

Customisation

In comparison to on-premise platforms, cloud-based solutions are limited in their capability to make radical customisations or changes to software. The best option would be to find a technology provider who can work with you to customise the platform to suit your company’s HR processes and practice. An additional, yet vital, aspect is the capability to build third-party integrations with other service providers (such as payroll, accounts or recruitment), thereby minimising disruption and streamlining integrated processes.

Scalability

Cloud-based HRIS solutions optimise organisational efficiency from their ability to scale. This is excellent news for companies increasing or decreasing their capacity, as they adapt to changing economic environments. Cloud solutions provide a better representation of day-to-day functioning through real-time data reporting, as they can effortlessly manage changes in operational activity.

Customer Support

Partnering with a cloud HRIS technology provider means outsourcing a considerable amount of IT support tasks to their team, which is offered with no overheads and is included in the subscription fee. Ensure that the technology provider you select offers access to unlimited, free and round-the-clock customer support for you and your team.

Ask questions about the implementation process, customer helpdesk and feedback mechanisms to know how the provider will facilitate the transition to ensure operational functionality with their solution.

Don’t just automate – accelerate efficiency

The HRIS solution you implement will impact operational efficiency and business growth. Make a choice that accelerates HR productivity through automation, whilst vastly improving employee engagement.

Book A Demo with Flare HR

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