HR Technology has changed a lot of things over the years. Many companies have opted for HR software and it has proven to be a solution for optimizing workload and building a transparent platform for the administration and the employees. There are various cloud based applications that are dedicated to payroll, accounting and recruitment services.
Companies tend to opt for such applications from various providers as per their requirement. As it is inevitable for any technology to function without having a few downsides, just like a coin has two sides, these applications might be a robust solution to various problems but they do have certain drawbacks. Let’s delve a little deeper and discuss the pros and cons of using an HR software.
Advantages of using an HR software:
- Immediate Access
Technology has made our lives easier and HR Software is also a part of it. It takes hours to download huge files and run installs before one can use it. Cloud-based applications like HR software provide immediate access to the user avoiding the hassle of large scale implications. HR software provides simple access and can be used on an active web browser. This saves the IT team from extensive labour of installing the application along with the infrastructural preparations in advance.
- Automated Updates
Web based software and applications are known for automated updates. Auto-update of the cloud-based HR system eliminates the task of updating the software whenever required. This enhances reliability and saves time and labor. The web based system allows the update to take place in the background. This avoids the inconvenience of the system being out of order on work days. The HR software keeps the system aware of changing labor laws and tax rates.
- Enhanced Communication
Multinational companies have employees working from different countries. Cloud-based applications provide the opportunity to connect with employees working in different countries, it also enables translation of documents and to even work on a common platform. As a result, this increases the global compatibility of the companies.
Disadvantages of using HR Software:
Although web based applications provide a secure data storage facility, we can’t deny the fact that global access to such applications increases the risk of data breach. The HR data has to travel through the internet before reaching the web based applications. Options like security software and encryption do minimize the risk but it is not an impossible task for a third party hacker to break through and gain access. As a precautionary measure, it is important to build up an infrastructural development for security prior to opting for a web based HR application.
The providers for cloud based applications keep working on new features to upgrade the facilities. These changes may or may not work as per your requirement. These changes might require unnecessary upgrade of the hardware increasing the expenses of the organization.
Increase in the fee of the service provider is another unexpected change that affects the budget of the organization.
Organizations tend to use various cloud based applications for different purposes. Integrating these applications for better results is a challenging task. One of the major challenges is integrating the cloud based applications with certain computer based applications. As these applications may not be compatible with each other. The only way to avoid such issues is to investigate the functionality of the cloud based application along with the loopholes before opting for a certain HR software.
Each application comes with certain limitations. One has to be aware of these limitations before opting for any HR software. As these applications will be responsible for delicate tasks of HRM, it is important to keep in mind the requirements of the organization and if the HR software you are opting for is compatible to function with such limitations.