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With so many cloud HR software solutions on the market, choosing the right one for your business can feel overwhelming. You need a platform that not only streamlines essential HR tasks—like payroll, recruitment, and performance management—but also offers secure data storage and anytime, anywhere accessibility. The challenge is finding a solution that truly fits your organization’s unique needs.

As an HR and recruitment specialist with hands-on experience using dozens of HR tools across various industries, I understand what makes a platform effective and what falls short. In this guide, I’ve cut through the noise to deliver a carefully curated list of the best cloud HR software, helping you simplify HR management and support your team’s growth with confidence.

Why Trust Our HR Software Reviews

We've been testing and reviewing HR software since 2019. As HR professionals ourselves, we know how critical and difficult it is to make the right decision when selecting software.

We invest in deep research to help our audience make better software purchasing decisions. We've tested more than 2,000 tools for different HR use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent, and take a look at our software review methodology.

Best Cloud HR Software Systems: Pricing Comparison Chart

This comparison chart summarizes pricing details for my top cloud HR software selections to help you find the best HR software for your budget and business needs.

Best Cloud HR Software Reviews

Here are my detailed summaries of the best cloud HR software that made it into my top 10 list, including notes on why I picked them. Each review offers a detailed look at the key features, integrations, and ideal use cases of each system to help you find the best tool for you.

Best for end-to-end global payroll management

  • Free trial + demo available
  • From $29/month
Visit Website
Rating: 4.8/5

Deel is an excellent cloud-based HRIS for businesses that need to manage employee data and handle payroll tax compliance. It’s used by companies like Dropbox and Shopify to handle their global workforces.

Why I picked Deel: Deel's platform can hire employees or contractors in over 150 countries on your behalf as an employer of record, eliminating the need to set up a new entity or understand foreign payroll requirements. The platform is easy to use and provides a variety of features that make it a great choice for businesses of all sizes. You can also use Deel to offer international benefits, offer stock options, and track equipment in a streamlined manner.

Deel Standout Features and Integrations:

Features include contract management, expense reimbursements, and off-cycle adjustments. Employees can also self-manage their pay and personal data independently, which reduces admin load.

The platform does not provide tools for screening candidates or tracking applications but integrates with applicant tracking systems like Ashby and Greenhouse. You can also import qualified candidate data directly into Deel to initiate onboarding and use Deel’s built-in Veriff integration to validate users.

The company provides 24/7 client support and live chat. Any company considering hiring an international worker should evaluate Deel for their workforce.

Integrations are available with Ashby, BambooHR, Expensify, Greenhouse, Hibon, NetSuite, Okta, OneLogin, Quickbooks, Xero, Workday, and Workable. They also have an Open API to support additional custom integrations too.

New Product Updates from Deel

500+ New Platform Enhancements for Global Hiring and Payroll
Deel's dashboard overview, showcasing global HR, payroll, and compliance management in one unified platform.
July 13 2025
500+ New Platform Enhancements for Global Hiring and Payroll

Deel announced over 500 platform enhancements focusing on global hiring, HR, payroll, and AI-driven compliance, featuring tools for faster hiring, smarter HR management, strategic planning, and enhanced payroll flexibility. For more details, visit the source: Deel Blog.

Best for employee self-service

  • 30-day free trial
  • Pricing upon request
Visit Website
Rating: 4.1/5

Paycor is a cloud-based human capital management (HCM) system that streamlines HR processes and improves team collaboration. The system includes a robust suite of tools for managing employee data, tracking time off and absences, and creating and managing employee onboarding processes. Using Paycor, you can manage employee records, create custom reports, and set permissions for those who can access the system. The system offers a built-in audit trail that tracks all changes to employee records.

Why I picked Paycor: Its web and mobile HR app allows employees to access their HR information and perform various tasks independently through the self-service portal. Employees can update their profiles, access and sign documents, and view and print their payslips. Paycor provides users with a comprehensive knowledge base of HR best practices, including toolkits and manuals.

Paycor Standout Features and Integrations:

Features include payroll process automation to generate payroll reports, create invoices and performance reviews, and send reminders for upcoming deadlines. This feature can also automate repetitive tasks such as scheduling employee shifts or ordering supplies, freeing up resources to focus on more strategic tasks.

Paycor also offers templates and tools to facilitate well-organized, comprehensive employee performance reviews, ensuring that all relevant employee information is included for an efficient review process. Additionally, Paycor's software has a built-in rating system that objectively evaluates employee performance, making the review process fairer and more accurate.

Integrations include Broadcast Employee Communication Suite, Millie, OurPeople, Uncommon Giving, Spark Hire, Workvivo, and numerous others through their app marketplace.

Best for core HR features

  • 7-day free trial
  • From $6.19/user/month (billed annually)
Visit Website
Rating: 4.4/5

Say goodbye to your filing cabinets - BambooHR’s cloud-based HRIS system is designed to be a single source of employee data that simplifies common HR tasks, saving your business time and money. By integrating all your data points into one system, it’s fast and easy to keep your employee records up-to-date, and run deeper and more meaningful reports on the data.

Their HR system includes core HR features like an applicant tracking system (ATS), preboarding, onboarding and offboarding functions, e-signature capabilities, time tracking and paid time-off (PTO) tracking systems, a performance management solution, and an employee satisfaction module that measures your eNPS (employee Net Promoter Score).

They also have a long list of add-on features that can be configured depending on your needs, such as full payroll processing services, tax filings that are compliant with U.S. federal and state tax laws, year-end forms and many other features. It’s a great platform for small business owners and startups as it can scale over time, as your business grows.

The Employee Self-Service portal gives staff the power to keep their own HR files up-to-date, with the ability to upload documents like health forms, certifications, drivers’ licenses and whatever else they need. Other self-service elements include their intuitive Time-Off Manager, access to an employee directory, and an org chart that updates in real-time. As well, the helpful shared company calendar captures everyone’s vacation days in one place, as well as key dates like birthdays and work anniversaries.

BambooHR integrates with 60+ commonly used programs including Slack, Greenhouse, HireRight, Indeed, Lattice, 15Five, PayScale, Pingboard, NetSuite, Spark Hire, Zapier and many others. They also have an open API that allows for integration with other HR software tools.

New Product Updates from BambooHR

Ask BambooHR Provides Instant Help Center Answers
Ask BambooHR provides instant support for employees.
July 27 2025
Ask BambooHR Provides Instant Help Center Answers

BambooHR's "Ask BambooHR®" feature offers immediate answers to how-to and support questions using Help Center content, removing the need for manual searches. More details are available at BambooHR Product Updates.

Best for complex HR processes

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.2/5

Paychex Flex is an all-in-one solution that covers core HR, payroll, and benefits management. It is designed to serve businesses of all sizes, providing a single platform for various HR-related tasks.

Why I picked Paychex Flex: I included Paychex Flex in this list due to its comprehensive suite of features that cater to various HR needs. It stands out as an all-in-one platform that combines HR, payroll, and benefits management, making it a versatile tool for businesses of all sizes. What differentiates Paychex Flex is its ability to automate complex HR processes, thus simplifying administration tasks.

Paychex Flex Standout Features and Integrations:

Features include customized payroll packages, online payroll services with round-the-clock support, time and attendance tracking, retirement services, recruiting and applicant tracking, benefits administration, hiring and onboarding services, a professional employer organization (PEO) solution, assistance with retirement plans and employee health benefits, and support claiming valuable tax credits.

The tool also enables businesses to track employee time and attendance through various methods, including time clocks, mobile apps, and web-based time entry. The onboarding feature provides a digital platform for new hires to complete necessary paperwork, review company policies, and access training materials.

Paychex Flex also offers robust reporting and analytics capabilities, allowing businesses to gain insights into their HR data. It assists businesses in managing payroll taxes by calculating and filing federal, state, and local taxes, and offers retirement services, including 401(k) administration and compliance support.

Integrations include QuickBooks, Xero, ClockShark, TSheets, Aflac, UnitedHealthcare, Hubworks, Indeed, Jirav, Microsoft Azure AD, and Oracle.

New Product Updates from Paychex Flex

June 29 2025
New Direct Deposit Verification

Paychex Flex will introduce a new verification procedure for direct deposits to enhance security against errors and fraud. For more details, visit Paychex Product Releases.

Best for the full employee lifecycle

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.6/5

ClearCompany is a cloud-based talent maximization platform that's designed to help HR teams support their staff across the full employee lifecycle. Their platform covers many features, including applicant tracking, employee onboarding, performance management, employee engagement, and related analytics.

Why I picked ClearCompany: What sets ClearCompany apart from other HR software systems is its focus on transparency and alignment. It's designed to help you create a clear, aligned workforce where everyone understands their role and how it contributes to the company's overall goals. It achieves this alignment, in part, through its performance management module that includes advanced goal-planning tools.

Using this module, you can set goals for your employees, track their progress, and provide feedback. It's a great way to keep your team motivated and focused on their objectives.

ClearCompany Standout Features and Integrations:

Features include its applicant tracking system, which offers you more than just a portal for posting job ads and collecting resumes, and powerful automation features to help you screen candidates, schedule interviews, and even conduct background checks. It's a huge time-saver and makes the entire recruitment process much more efficient.

Integrations are available with numerous skill assessment platforms, background-checking tools, payroll systems, and benefits providers. Key systems to note include ADP, BambooHR, Ceridian, Checkr, eSkill, Office 365, Okta, OneLogin, Paychex, Paylocity, UKG Pro, and others.

Best for AI-driven HR automation

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.5/5

Paylocity is a cloud-based HR and payroll platform that centralizes employee data and automates core processes like scheduling, benefits, and compliance. It helps midsize to large organizations manage HR operations more efficiently, with built-in intelligence that informs everyday decisions.

Why I picked Paylocity: Paylocity stood out for how seamlessly it embeds automation and AI across key HR functions. It forecasts staffing needs, generates job descriptions, recommends market-aligned compensation, and flags retention risks with actionable suggestions—all without requiring external tools. These capabilities make it easier for HR teams to respond to workforce changes quickly and accurately.

Paylocity Standout Features and Integrations:

Features include headcount planning, automated scheduling, personalized benefits guidance, and a self-service portal where employees can manage pay, time off, and benefits. An AI assistant answers platform and policy questions in real time, reducing support requests. Built-in analytics offer visibility into labor costs, staffing trends, and compliance status.

Integrations are available with BambooHR, Greenhouse, NetSuite, ADP, Oracle HCM, Workday, Salesforce, Microsoft Teams, HubSpot, Zendesk, Slack, and Microsoft SharePoint, allowing Paylocity to plug into your existing HR systems.

Best with integrated benefits administration

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.8/5

GoCo is an all-in-one HR software platform designed to simplify HR processes for small and mid-sized businesses. It offers a comprehensive suite of tools for managing HR tasks, including payroll, benefits administration, time tracking, compliance, and talent management. 

Why I picked GoCo: I like that it offers an employee self-service portal, which allows employees to manage their personal information, benefits enrollment, and leave requests independently. The automated workflows feature also enhances process efficiency by automating repetitive HR tasks.

GoCo also has integrated benefits administration. It supports online benefits enrollment, ACA compliance, and carrier integrations, ensuring that all aspects of benefits management are handled seamlessly. Additionally, GoCo's Magic Docs feature offers an innovative approach to document management, allowing users to create, send, and sign HR documents digitally. 

GoCo Standout Features and Integrations:

Features include the new hire onboarding feature that automates the onboarding process. This feature helps make a great first impression and gets employees up to speed quickly. The AI for HR tools integrated into the platform also simplifies HR tasks and enhances the user experience for both HR professionals and employees.

Integrations include 360Learning, Checkr, E-Verify by Tracker I-9, Execupay, Human Interest, Ideon, JazzHR, Paychex, Remote, Verified First, QuickBooks Online, and Tango Card.

Best or employee well-being

  • 14-day free trial
  • From $4.50/user/month
Visit Website
Rating: 4.4/5

Factorial is a comprehensive and innovative cloud-based HR software designed to revolutionize the way businesses manage their human resources. With a wide range of tools and features, Factorial simplifies HR processes, from employee onboarding and time tracking to performance management and analytics. Its user-friendly interface, automation capabilities, and data-driven insights empower organizations of all sizes to streamline their HR operations, enhance employee engagement, and make informed strategic decisions.

What makes Factorial stand out from other HR tools in the market is its comprehensive feature set. It's not just about managing employee data or tracking time, it's about managing your entire HR process in one place. Some of the standout features for me include the performance review module, which allows you to easily track and manage employee performance, and the time tracking feature, which makes it easy to keep track of employee hours and overtime. The onboarding and offboarding features are also pretty neat, making it easy to manage the entire employee lifecycle.

Factorial sets itself apart by placing a primary focus on employee well-being through a specialized module that facilitates anonymous feedback, concern reporting, and improvement suggestions. This module offers a secure platform for employees to freely express their viewpoints, creating an environment of open and transparent communication. With the addition of sentiment analysis capabilities, HR teams can proactively recognize patterns and tackle potential concerns.

Integrations include Sage, Gmail, Payflow, Dynamics 365, LinkedIn, TravelPerk, PowerBI, Indeed, Recruitee, Slack, and other. 

Best for customizing workflows

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.3/5

Kallidus Sapling's cloud-based HCM (human capital management) platform allows HR teams to automate common HR tasks from onboarding to offboarding and everything in between.

Why I picked Kallidus Sapling: Their HR tools simplify tasks using auto-assigned workflows, email scheduling, and alerts which can be customized for different locations, departments, or employee types to standardize processes. This is a useful feature for companies with distributed teams as it helps HR managers regulate processes across all work locations and departments. Their system also comes with pre-built reports to analyze any type of data that’s stored in the system.

Kallidus Sapling Standout Features and Integrations:

Features to improve your employee experience include colour-coded org charts by location, department, or custom groups, an employee directory, and customizable employee profiles to help reflect your company culture and core values. It's also easy to track job-related data such as promotions, salary adjustments, relocations, and other historical changes. In addition, the system also supports paid time-off (PTO) tracking, including customizable PTO policies for different groups.

Integrations include 50+ leading HR, IT, and productivity systems such as JazzHR, Lever, Workday, ADP, Paylocity, 15Five, Lattice, OneLogin, Greenhouse, Okta, Zapier, the Google Suite, Slack, Lessonly, ChartHop, Jira, LinkedIn, and many other platforms.

Best for managing talent and succession planning

  • 30-day free trial
  • From $6/employee/month
Visit Website
Rating: 4.3/5

Sage HR is a cloud-based software system designed for HR teams. It offers reliable, secure, and user-friendly tools that can improve the way an organization manages and optimizes its HR processes.

Sage HR helps streamline the entire employee lifecycle, from recruitment and onboarding to performance management and succession planning in one centralized location. It also helps you track employee data, including attendance records, time off requests, and benefits information. The software includes features such as ATS, which allows you to quickly review job applications and access candidate profiles. With the ATS feature, you can easily post job openings on multiple job boards with just a few clicks. Additionally, Sage’s automated onboarding process allows you to quickly and easily onboard new hires by providing them with digital forms that can be filled out electronically.

Additionally, Sage HR provides you with access to employee self-service portals where everyone can manage their personal information such as addresses, contact details, and bank accounts. The software also enables users to easily track employee performance and attendance records through its reporting feature. Moreover, it provides the business with insights into how employees are performing in areas such as attendance, customer service metrics, or other KPIs so they can make quick decisions based on data rather than guesswork. 

Finally, Sage HR provides compliance management tools so users can be sure that all their data remains in line with industry regulations and standards. 

Integrations for this software include an API you can use for custom integrations, Microsoft Azure, Slack, G Suite, and thousands of additional apps using Zapier.

Other Cloud HR Software

Here are a few more options that didn’t make it into my top 10 list for the best cloud HR software, but are still worth checking out:

  1. bob

    For connecting hybrid teams

  2. Arcoro

    For health and safety-focused industries

  3. HR Cloud

    For digital onboarding and offboarding

  4. Collage HR

    For Canadian SMBs

  5. Cloud9HR

    For organizational management

  6. Rippling

    For automated onboarding

  7. Rise

    For Canadian companies with lean HR teams

  8. Oyster HR

    For international hiring

  9. Zenefits

    Cloud HRIS system for benefits management and group insurance

  10. OrangeHRM

    Free cloud-based HRMS software, available via open source

If you still haven't found what you're looking for here, check out these other related tools that we've tested and evaluated:

Selection Criteria for Cloud-Based HR Software

Selecting HR software requires a deep understanding of how each functionality meets a specific use case, solves a common pain point, or improves operational efficiency. My approach to choosing the best cloud HR software for this list is grounded in my years of HR management experience and thorough research to ensure my recommendations are valuable. Here's a summary of the evaluation criteria I used to make my final picks for this list.

Core HR Software Functionalities (25% of total score): To be considered for inclusion in my list of the best cloud HR software, each solution had to fulfill these common use cases first:

  • Core HR data management capabilities that centralize all your employee data
  • Integrated modules for easy digital data management
  • Some form of employee self-service module to reduce administrative requests
  • Customizable user roles and permissions to curate who can access your employee data

Additional Standout Features (25% of total score): To help differentiate one HR system from another, I also kept a keen eye out for unique features that will ultimately make your day-to-day life easier, including the following:

  • The ability to track employee working hours and/or attendance management within the system (with bonus points awarded for systems that automatically sync time-tracking data with their payroll module)
  • Tools to facilitate performance reviews and create continuous feedback loops
  • Features that cover all key phases of the employee lifecycle, from recruiting and hiring to onboarding, employee development, and offboarding
  • Integrated compliance monitoring features to monitor regulatory requirements
  • Automations to streamline common yet time-consuming administrative processes and improve the system's ease of use

Usability (10% of total score): To evaluate the usability of each system, I considered the following:

  • An intuitive design and user interface that are straightforward to master and create a positive user experience
  • Clear and concise on-screen instructions and tips to improve ease of use and create a positive user experience
  • A user-friendly mobile experience or dedicated mobile apps for Android and iOS mobile devices to support remote and on-the-go HR management
  • Role-based access controls that are straightforward to configure

Onboarding (10% of total score): To get a sense of each software provider's customer onboarding process, I considered the following factors:

  • A streamlined setup process and clear configuration guidelines for new users
  • The availability of training materials such as videos or interactive tutorials
  • The availability of live support or chatbots for real-time assistance during setup
  • Customizable templates to speed up the onboarding process
  • Support for migrating historical employee data into the new HR platform

Customer Support (10% of total score): To evaluate the level of customer support each vendor offered, I considered the following:

  • The availability of multiple support channels, including email, phone, and chat
  • Whether a dedicated account manager is provided for personalized support
  • The existence of a self-service knowledge base, an FAQ repository, or other self-help resources to speed up troubleshooting
  • The overall quality, responsiveness, and helpfulness of the support team during customer onboarding and post-purchase, as inferred from customer reviews

Value for Price (10% of total score): To gauge the value of each software, I considered the following factors:

  • The availability of free trials or demos to test the software before purchasing
  • Competitive and transparent pricing models that reflect the software's feature depth and explain which features are included at each level
  • Tiered pricing plans that cater to different business sizes, from small to medium-sized businesses (SMBs) up to enterprise-level organizations
  • A clearly demonstrated positive ROI through efficiency gains and cost savings

Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how well a product performs in the hands of real users. Here are the factors I considered:

  • Whether a product has consistently high ratings across multiple review platforms, indicating a broad level of user satisfaction
  • Specific praises, criticisms, or trends in customer feedback that indicate the software's strengths or areas for improvement
  • Whether customer feedback specifically mentions issues with ease of use, customer support responsiveness, or lacking features
  • Any testimonials that highlight significant improvements in HR processes or employee management capabilities

Using this assessment framework helped me identify the cloud-based HR systems that go beyond basic requirements to offer additional value through unique features, intuitive usability, smooth onboarding, effective support, and overall value for price.

How to Choose Cloud HR Software

Cloud-based HR software can solve many different challenges and improve numerous workflows. To help you figure out the best HR software for your needs, you need to pinpoint your key users and document their specific challenges first.

As you work through your own unique HR software selection process, keep the following points in mind:

  • What problem are you trying to solve - Start by identifying the challenges you're trying to overcome. This will help you clarify the features and functionality the cloud HR software needs to provide.
  • Who will need to use it - To evaluate cost and requirements, consider who will use the software and how many licenses you'll need. Depending on the platform, you'll likely want employee-level access for your entire workforce, with special access for your HR administrators and managers. Once that's clear, it's also useful to rank the needs of your different users to identify your key priorities for your HR software power users, managers, and employees, to ensure they're all met.
  • What other tools it needs to work with - Clarify what tools you're replacing, what tools are staying, and the tools you'll need to integrate with, such as accounting, time-tracking, or payroll software. You'll need to decide if the tools should integrate together, or alternatively, if you can replace multiple tools with an all-in-one cloud-based HR platform.
  • What outcomes are important - Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to provide a more enriched employee experience through increased self-service abilities or improve employee engagement by increasing team recognition capabilities. You could compare HR software features until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you could waste a lot of valuable time.
  • How it would work within your organization - Consider the software selection alongside your existing workflows and systems. Evaluate what's working well, and any problem areas that need to be addressed.

Remember every business is different — don’t assume that a cloud-based HR system will work for your organization just because it's popular.

Understanding emerging trends in cloud HR software helps you better assess what to look for in a solution. I try to keep up with the shifting functionalities, features, and focuses of these products to ensure my lists are not just up-to-date, but forward-looking. Here are several trends taking shape now and into the future:

  • AI-Driven Talent Acquisition: Artificial intelligence (AI) capabilities are enhancing hiring processes by improving how you can attract, discover, and recruit the right people for your open roles. They're becoming increasingly adept at understanding job requirements and candidate profiles, offering a more efficient and effective recruitment process. For example, AI-driven recruitment tools can analyze vast amounts of data to:
    • Identify the most suitable candidates,
    • Reduce time-to-hire, and
    • Improve the recruitment and onboarding process.
  • Employee Wellness and Mental Health Platforms: The rise of platforms focusing on employee wellness and mental health speaks to the increased importance of demonstrating care for your workforce. These cloud-based solutions offer resources like counseling services, wellness tracking, and stress management tools. By prioritizing employee well-being, companies can see a marked improvement in employee satisfaction, retention, and productivity. And this ultimately aligns with the objectives of HR leaders to build a supportive and enduring workplace culture.
  • Advanced Performance Analytics: Employee performance and talent development are as important as ever—particularly with AI becoming increasingly present in many employees' day-to-day. Performance management tools provide actionable insights into employee productivity, engagement, and skill development. They help in identifying areas for improvement and training needs, ensuring that employees are performing to their best ability and are on a path of continuous growth.
  • Hybrid Workforce Management Solutions: Cloud HR software is increasingly incorporating features for managing distributed teams, bridging the gap between remote and in-office work environments, and ensuring efficient operations irrespective of the physical location of employees. This includes tools for:
    • Remote attendance tracking,
    • Team collaboration, and
    • Streamlined communication.

These trends are shaping the development of cloud HR software, making it more efficient and capable of meeting the complex needs of modern organizations.

If you’re interested in learning more about how AI is enhancing HR software systems, check out our articles explaining how AI will impact human resources.

What is Cloud HR Software?

Cloud HR software is an online platform that handles various human resource functions, providing remote access, data security, and efficient management of employee-related processes. Key features of cloud HR software include remote accessibility, employee data management, payroll processing, recruitment and onboarding tools, performance tracking, benefits administration, and real-time analytics and reporting.

Features of Cloud HR Software

Here’s a summary of the main features I assessed while building this list of the best cloud-based human resources software:

  • Core HR data management features: A single source of employee data management that populates all software modules automatically in real-time.
  • Payroll functions: Integrated, tax-compliant payroll management software that removes the need for manual calculations.
  • Time off & attendance: Tracking when your employees start and stop work, as well as their vacation and other leave requests.
  • Benefits administration: A way to link your health benefit offerings to your core employee and payroll data, and digitize the benefits enrollment process.
  • Performance management: Tools to facilitate performance reviews and track employee performance and development over time.
  • Recruiting & onboarding tools: This includes digital tools to screen candidates, streamline the hiring process, and turn candidates into new hires, including an applicant tracking system (ATS). 
  • Training & learning management features: A process for tracking employee qualifications and certification expiry dates, and hosting in-house training presentations.
  • Employee self-service portal: The ability for employees to update their own personal information and access other details independently without relying heavily on HR staff.
  • E-signature Solutions: Cloud-based software caters to remote, hybrid, and distributed teams, which often requires digital systems for collecting and storing signatures for key HR paperwork.

Benefits of Cloud HR Software

Cloud-based HR software is designed to make your human resource functions more efficient and accessible from anywhere and any device. It can also help you reduce costs, enhance security, and ensure your software is always up-to-date with the latest features and improvements.

By selecting the best cloud HR software for your needs, you can expect to gain the following benefits:

  • Improved Accessibility: Cloud HR software allows users to access information and perform tasks from any location with internet access. It also allows for remote and hybrid document management systems from anywhere.
  • Improved Cost Efficiency: By reducing the need for in-house IT infrastructure and personnel, cloud HR software significantly lowers upfront and ongoing costs. Organizations can avoid large capital expenditures on hardware and enjoy a subscription-based model that scales with their needs.
  • Enhanced Security: Providers of cloud-based HR software typically invest in robust security measures, including data encryption and secure data centers, which are often more extensive than what individual organizations can afford. This helps protect sensitive employee data against breaches.
  • Continuous Updates and Improvements: Cloud software providers continuously update their products to include new features, improve user experience, and enhance performance. Users automatically receive these updates, ensuring they always have access to the latest tools and functionalities.

By adopting cloud HR systems, businesses can enjoy greater flexibility, reduced costs, improved security, and a host of other advantages that are crucial in today’s dynamic business environment.

Costs & Pricing for Cloud HR Software

Cloud HR software offers different plans and pricing options to support different business sizes and types, from startups to large enterprises. Each plan comes with its own set of features and pricing structure, designed to provide scalability and flexibility. Here’s a breakdown of common plan options to help you make an informed decision.

Plan Comparison Table for Cloud HR Software

Plan TypeAverage PriceCommon Features
Free$0Basic HR functions, limited users, and limited data storage
Basic$10-20 per user/monthCore HR features, employee self-service portal, and cloud storage
Professional$20-40 per user/monthEnhanced HR features, API access, and customization options
EnterpriseCustom PricingAdvanced features, full customization, dedicated support, and analytics
A breakdown of plan types, costs, and features for cloud HR software.

Choosing the right plan depends on the size of your organization, the complexity of your HR needs, and your budget. It’s important to consider not only the immediate capabilities of the software but also its potential to grow with your business. Keep these factors in mind as you compare different cloud HR software options to find the best fit for your needs.

Frequently Asked Questions

Here are some answers to commonly asked questions about cloud-based HR software and how it works:

What is a software cloud?

When related to software, the term “cloud” describes systems that operate remotely via the internet. They’re managed through a series of web servers that run applications and store data on your behalf. The original software developers are also responsible for ongoing system maintenance.

Another term for cloud software is SaaS (software-as-a-service), a popular software subscription model. As well, the term “on-demand” is sometimes used interchangeably, since cloud software is always available.

The opposite of cloud-based systems are “on-premise” systems. On-premise systems run locally on your computer or company network. Since they are not a one-size-fits-all solution, they can often be customized for specific business needs. The flip side is, your in-house IT support needs are likely to increase.

If you’re looking for something to help you organize all your workplace apps, take a look at my list of the best SaaS management platforms for some solid options.

Are there different types of cloud-based HR software?

There certainly are. For the purpose of keeping this list focused, I selected cloud-based HR systems that fall within the realm of HR management systems. Within the HR management software space, you’ll find the following sub-categories of software:

Beyond that, there other types of cloud-based software systems too. Popular types include online payroll software and cloud recruitment software among others.

How popular are cloud-based HR software systems?

According to Verified Market Research, 70% of the HR software market is comprised of cloud-based HR software. This includes HCM, HRMS, HRIS, and other types of talent and workforce management systems. Industry experts are projecting a compound annual growth rate of 11.12% between 2021 and 2028.

In a separate 2021 study by the Information Services Group that surveyed 260 companies, 46% of respondents confirmed they were currently subscribing to a SaaS platform, with 57% expecting to have subscribed by 2023.

What is the average implementation time for cloud HR software?

The average implementation time for cloud HR software can vary significantly depending on the complexity of the business’s requirements and the specific software chosen. Typically, small to medium-sized businesses can expect an implementation period ranging from a few weeks to a few months. Larger enterprises with more complex needs may require several months to fully integrate and train staff on the new system.

It’s crucial for companies to work closely with their software provider to establish a clear implementation plan, including milestones and training sessions to ensure a smooth transition. To gain a better sense of your own implementation needs, have a read through this article on software implementation and how to tell if you’re ready for new HR technology.

How do different cloud HR software handle data privacy?

Data privacy is a critical concern for cloud HR software, and reputable providers adhere to strict data protection regulations such as GDPR, HIPAA (in healthcare), or local data protection laws.

Most software platforms employ robust security measures including data encryption, regular security audits, and compliance checks. They often offer customizable privacy settings to allow businesses to control who has access to sensitive employee information.

Users should inquire about the specific security protocols each provider uses and ensure they align with the organization’s own data security standards. This article offers more details into data management best practices if you’re interested in learning more.

What are the contract terms like for cloud HR software?

Contract terms for cloud HR software vary by provider. Important elements to review include the length of the contract, cancellation policies, and any fees associated with early termination. Most providers offer a range of options from monthly subscriptions to annual contracts, giving businesses flexibility based on their budget and needs.

It’s important for potential buyers to thoroughly review the contract terms, understand the scope of the services provided, and clarify any points of confusion with the provider before signing. Questions about scalability, data ownership, and service level agreements (SLA) should also be addressed within the contract.

Other HR Software Reviews

Here are a few other cloud-based HR software lists that may also interest you:

For a more holistic view of what the HR software landscape has to offer, don't miss our complete guide to HR software

Final Thoughts

Cloud HR software is at the forefront of HR transformation. By digitizing your core HR processes, you’ll be able to ditch your filing cabinets and say goodbye to your spreadsheets. Instead, you'll gain intelligent data dashboards, increase your efficiency, and improve your overall employee experience. 

Lastly, be sure to subscribe to our People Managing People newsletter covering industry trends in HR leadership.

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Kim Behnke
By Kim Behnke

Kim Behnke is an HR software writer and analyst for People Managing People, drawing on nearly a decade of hands-on experience in human resources. With a background spanning recruitment, onboarding, performance management, training, policy development, and HR analytics, she brings a deep understanding of the challenges HR teams face and how technology can solve them. Kim holds degrees in psychology, writing, and technical communication, and is a Certified Digital HR Specialist through the Academy to Innovate HR. Her work is driven by a passion for streamlining systems and optimizing workflows to help HR teams work smarter.