By Key Business Advisors
Human Resources

Traditional vs Cloud-Based HR SystemHuman Resources management systems are now an arguably indispensable tool for businesses of all sizes, including small and medium enterprises. There is no doubt that HR management systems allow business owners and managers to seamlessly manage staff throughout the employment lifecycle, from recruitment through to termination of employment. If you’re looking to implement a system for your business, one of the first questions is, “Which one would be more efficient and effective in meeting your requirements – a traditional/on-premises HR management system, or a cloud-based system?”

The answer would depend on certain factors and considerations such as your budget, business size or number of workers, and performance or accessibility requirements.

Budget and Business Size
There are HR management/information systems for various budgets and needs, whether you require a basic or an all-encompassing system. Traditional on-premise systems tend to involve an upfront payment as well as payments for updates, upgrades and additional licences for installation on other computers or servers within a business. While cloud-based systems may also require ongoing payments and charges for more users, regular updates and enhancements are generally included for no extra charge.

Performance, Accessibility and Security
The performance, speed and accessibility of a traditional system depends largely on the hardware (e.g. computers and servers) in your business. Can your staff easily and quickly upload and download data to and from your own servers when they are not physically plugged into your office network? Cloud-based systems providers know that they must ensure network performance, accessibility and security of your data if they are to stand a chance of being considered by business owners and managers. Their resources (e.g. networks and servers) are usually state-of-the-art to ensure that you, your managers and other staff can access the system on the internet via a web browser any time, from anywhere, and that you can see the latest data in your system whether you’re using a desktop, laptop, tablet or smartphone.

Whether you choose a traditional or cloud-based system, make sure it:

  • is intuitive and easy to use;
  • provides and/or uses documentation, processes and employee management practices that are in line with Fair Work Commission, Workplace Health and Safety and other relevant workplace legislation requirements in your state;
  • has all relevant industrial instruments;
  • has training and development functions, and;
  • can guide you through the dismissal and termination process.


Key Business Advisors provides both traditional and cloud-based HR management systems. If you want to find out which type of system would best suit your business requirements, call our HR Team on 1300 4 ADVICE or email info@keyba.com.au.

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