Cloud HR and payroll software vs. on-premise software: The pros and cons

Jan 5
11:39

2018

Sneha Raghunath

Sneha Raghunath

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The hallmark of cloud HR and payroll systems is the fact that they are available online and can hence be accessed from any location with an internet connection.

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Online HR software or cloud HR software and on-premise HR software (Click Here) are common choices when it comes to the question of automating your organization’s HR and payroll management. Each of these types of systems is a valuable asset to any organizations as they both automate and streamline your HR and payroll processes to achieve higher efficiency and free up your HR’s time by a considerable measure. However,Cloud HR and payroll software vs. on-premise software: The pros and cons Articles they also differ from each other in a number of senses. Below, we take a quick look at the pros and cons of each of these two types of systems.

Cloud HR and payroll software

What’s more, modern cloud payroll software even allows access from a smartphone or tablet. With this facility, your employees can now work even on the go!

 Such cloud software is never installed locally but remotely so that employees can log into the software from any location with internet access. This also has other positive fallouts such as the elimination of server maintenance and associated IT support or personnel, the associated costs, etc.

 

The Pros

 Quick implementation: Among the chief advantages of cloud HR and payroll software is the speedy set-up times associated with it. Without any of the hassles of software installation, a new user can easily be onboarded on to the software.

Scalable: A cloud HR and payroll software is built to suit the needs of a small, growing or large organization. It’s easily scalable without any hassles even in the event of sudden growth or downsizing. This is especially relevant in our uncertain times.

Cost-effective: The cost-effectiveness of cloud HR and payroll software cannot be overemphasized. Typically available at a price point no higher than your monthly mobile bill, cloud HR and payroll software is built to handle the needs of a company of any size - be it 5 or 500. Also, you save on software installation costs, updates, and patches, support, AMC, etc.

 

The Cons

 Long story short, only the availability of an internet connection affects the cloud HR and payroll software negatively, in practical terms. Thus, if you are based out of a remote location that does not afford you the luxury of a stable internet connection, you’re probably better off not using a cloud HR and payroll software. Also, the same holds true if you experience frequent internet downtimes irrespective of your location.

 

On-premise HR and payroll software

 The more traditional of the two options, on-premise is slowly being phased out around the world. And there are good reasons for this. While an on-premise HR and payroll software can function without an internet connection, the disadvantages of using one far outweigh the advantages. The software has to be installed on-premise and in-house IT personnel are required to provide support. These represent unavoidable cost heads while using an on-premise HR and payroll software. Moreover, features such as real-time attendance will remain unavailable to you as a user of an on-premise HR and payroll software, unlike with online attendance software (Click here for more info). And this is just the tip of the veritable iceberg that is the demerits of using an on-premise software.

 We strongly recommend you opt for an easily scalable, cost-effective and no-fuss cloud HR and payroll software to meet the needs of your growing organization.