Comparing Cloud and Computer-Based HR Software

HR software is a valuable business asset because it streamlines operations like employee payroll, performance tracking, and schedule management.

When compared to outdated techniques, it helps an HR department run much smoother and reduces complications. Just a few years ago, most of this software was computer-based, but now more companies are opting for the Cloud. Let’s discuss the basics of each option and their pros and cons.


This revolves around a virtualized data center that utilizes multiple servers to provide users with access to an HR platform via a web browser and apps. Rather than having to install software locally, everything is done remotely so employees can log into the platform from nearly any location with Internet access. In addition to PCs, most Cloud systems can also be used on mobile devices like tablets and smartphones so tasks can be performed on the go.

There are three main benefits to using the Cloud.

1. The biggest is a quick implementation time. Instead of installing software, a new user can immediately be configured and begin using an HR platform.

2. It’s scalable, so it can fit the needs of businesses both large and small. If your company experiences sudden growth or seasonal peaks, you can make the necessary adjustments to accommodate that growth.

3. It tends to be more cost effective than computer-based software. Because you aren’t required to install updates or purchase new software, you can save a significant amount of money over time. You also only have to pay for the server space your business needs.

In terms of drawbacks, perhaps the most significant is that you can experience downtime if your Internet provider goes down. This can disrupt daily operations and make you look unprofessional to customers. Another issue is that Cloud-based solutions could prove problematic to businesses in rural locations, where Internet access may be slow or limited.


This is the more traditional option, in which software is installed manually and configured prior to deployment. Businesses have been using computer-based software for decades, even before the rise of the Internet. To access this software, employees must be at a business’s central office or have it installed at a home office.

There are far more disadvantages than benefits with computer-based HR software. Because it has to be installed manually and requires periodic updates, it’s easy to rack up some serious costs over time. If you outsource employees or have any who work remotely, remote access could be difficult. You are also more prone to data loss because you’re required to back everything up on a disc or USB drive. Whereas, with the Cloud, you’ll typically have multiple servers, so even if one goes down, another automatically kicks in, so nothing is lost.

While the overall abilities of computer-based software aren’t as sophisticated as the Cloud, there are a couple of benefits. Perhaps the biggest is security, because your company’s data isn’t in the hands of a third-party Cloud provider. This means that sensitive data can’t jeopardized like it could be in the Cloud. You are also less susceptible to attacks from hackers. In addition, you may experience fewer technical issues. Unlike a Cloud-based platform that requires a steady Internet connection to function, you’re less likely to have glitches.

When comparing these two HR options, it’s difficult to not be swayed toward the Cloud for overall effectiveness and efficiency. Although computer-based HR software may be better for companies in rural areas with limited Internet connectivity, most companies would benefit more from the Cloud.

Upon implementation, your business can coordinate employees with ease, keep up with payroll, stay updated on individual employee performance, and complete numerous other tasks to keep it running like a well-oiled machine.