You can be on Entrepreneur’s cover!

4 Signs It's Time for a Cloud-Based HR Platform Just like most business functions, you can now get HR help from the cloud. Is it time?

By Gwen Moran

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

You've had an uptick in hiring and your managers are awash in benefits applications, employee training materials, and accommodating new employee scheduling needs. With all of the administrative duties that hiring and managing people requires, it seems that there's barely any time to, well, manage anyone.

"When your people are managing process more than other people, it might be time to look at some of these solutions," says Adam Ochstein, founder & CEO of Chicago-based StratEx, a human-resources technology firm.

Related: Boosting Employee Engagement in the Summer Months

Like most business functions, HR platforms are increasingly cloud-based. Here are four signs such a tool might be a good move for your business.

1. When HR is a productivity-killer. Ochstein recommends doing an analysis of employees' time. Are your managers or HR personnel spending too much time on basic tasks that could be automated? And if they were spending time on other areas, could that deliver more value to the company?

2. When solutions exist. Solutions exist for areas such as new-hire tracking, time and labor management, performance management, benefits administration, and other human-resources activities. Is there a good option for the needs your company has? Look for solutions with good track records and solid reviews. You can find information about and reviews of various platforms in trade publications and on web sites like Capterra.com and GetApp.com. Of course, ask colleagues for referrals, as well.

Related: How Career Sushi Is Sprucing Up the Digital Job Hunt

But, don't "kill an ant with a mallet," Ochstein says. Many comprehensive solutions are typically beyond the needs of a small- to mid-sized business. For example, you don't need applicant tracking if you're not hiring a hundred people a year. However, using a platform that lets employees sign up for their own benefits and request vacation time could be a big time saver for your staff, he says.

3. When your team buys in. Of course, the best platform in the world won't be effective unless your HR department and managers use it. Be sure to involve them in the platform review and selection process to ensure that the investment will really pay off.

4. When there is room for ROI. Ochstein says that bare-bones applications can be as little as $8 per employee per month, while robust, comprehensive systems can run up to $60 per employee per month. A typical 25- to 30-person company would likely need to budget $8,000 to $10,000 for moderate solutions, he estimates. If the benefit of having your employees devote their HR administration time to other tasks and projects would exceed the projected expenditure, that's another sign it could be a good move for your business, he says.

Related: Recruiting at a Hackathon? 5 Tips for Success.

Gwen Moran

Writer and Author, Specializing in Business and Finance

GWEN MORAN is a freelance writer and co-author of The Complete Idiot's Guide to Business Plans (Alpha, 2010).

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

I Designed My Dream Home For Free With an AI Architect — Here's How It Works

The AI architect, Vitruvius, created three designs in minutes, complete with floor plans and pictures of the inside and outside of the house.

Business News

This Fan-Favorite Masters 2024 Item Is Still $1.50 as Tournament Menu Appears Unscathed by Inflation

The pimento cheese sandwich is a tradition almost as big as the tournament itself.

Business Ideas

7 Link-Building Tactics You Need to Know to Skyrocket Your Website's Rankings

An essential component of SEO, link building is not just a 'Set them and forget them' proposition, but a dance of skills and strategies.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Here's One Thing Americans Would Take a Pay Cut For — Besides Remote Work

An Empower survey found a high percentage of respondents would take a pay cut for better retirement benefits and remote work options.