Cloud-based human resources (HR) solutions accelerate workforce processes and help companies free their employees from routine tasks. The following is a presentation of modern recruiting tools, digital staff files, and more that SMBs can use to automate staff work.
Digital transformation is advancing and does not stop in HR departments. Regardless of whether you work in the automotive industry, service industry, or IT – every business needs employees, and the functional requirements of HR software that can be used to manage it efficiently always remain relatively the same.
Horizontal personnel management solutions that can be used in any industry and in any company are therefore ideal for the cloud. In this context, it is not surprising that cloud-based business applications for everything related to payroll, time management, candidate management, talent management, etc. become more and more popular.
SMBs are discovering the HR cloud
Small and medium-sized companies play a central role as engines of growth. Because they are increasingly investing in software solutions that support HR processes better than Excel and the rudimentary office tools they used in the past. The range of simple and inexpensive HR tools specifically targeting SMEs is still quite small compared to other business software segments such as customer management, collaboration or accounting. But now you can find a whole range of professional cloud services on the German market that are precisely tailored to your needs.
These enable HR departments to speed up daily strategic and administrative processes, work better together in teams, and do their jobs more efficiently. According to analysts at Roland Berger, German companies use HR tools that focus on administrative tasks (such as payroll accounting, vacation planning, or time recording) much more frequently than strategic solutions. But cloud systems that support companies in recruiting, talent management, and the like show higher growth rates than operational HR tools, according to analysts.
Next, we present professional and modern HR solutions for recruitment and personnel management with which startups and SMEs can digitize the work of personnel in the cloud. We focus on software providers that operate their applications in European data centers, as well as international providers whose products comply with the new General Data Protection Regulation (GDPR).
Lean vs. All-in-one solutions
Companies that are still in their infancy when it comes to digitizing their HR work can basically choose between two approaches to finding the right tools for their teams: “Best in class” or “All in one”.
The best-in-class approach is to use several lightweight HR tools that are inexpensive and easy to implement, each focusing on a specific functional area. Companies can use one tool for recruiting, another for talent management, and another third-party solution for payroll accounting.
The great disadvantage of this approach is that the integration of different solutions is not easy in practice, on the contrary. To avoid data redundancy or complicated integrations, many companies opt for all-in-one solutions. These comprehensive suites bring together multiple functional modules under one roof and offer users a uniform and consistent user experience across departmental boundaries. This, in turn, can increase user acceptance of the newly introduced solution, because employees do not have to be familiar with the different systems and orient themselves.
This is how recruiting works today
For example, if you want the software to optimize employee search and candidate management, you can use the best lean tools like eRecruiter, Coveto, Taledo, JobTool 24, Softgarden, or Recruitee, which are entirely focused on recruiting. . Or you can opt for feature-rich HR suites like Personio, Zoho People, HR Works, Jacando, or HR Suite Plus from Sage, which in addition to a recruiting module include other tools for staff development, time management, job management. travel expenses, payroll accounting and talent. – Offers management and more.
Among lightweight tools, Recruitee impresses as a high-quality SaaS solution that attracts startups and SMEs, as well as larger companies with a flexible pricing model. Clients benefit from flexibly tailored professional pages, which are the number one point of contact for applicants. Here companies can impressively tell their story and post vacancies. With the integrated editor you can design your career page yourself and adapt it to your corporate design. One plus point: Career pages are optimized for mobile devices and can be easily integrated into your own company website.
Other core features include direct links to job boards and multiposting. Job postings can be posted on more than 400 job boards around the world and shared on social media. The hiring process for each advertised position can be controlled individually. It is also practical: after receiving an application, a CV analysis tool ensures that incoming CVs are read automatically and relevant information is saved in a candidate profile.
Another young startup on the road to success with a cloud-based recruiting solution is called Prescreen and has branches in Vienna and Berlin. Last year, the startup was acquired by Xing, the German market leader among professional platforms, for 17 million euros. As soon as you move with Prescreen, you will immediately notice that this is a product of the cloud age.
The service launched in 2012 not only impresses with its appropriate features, but also with the high level of usability and price transparency that characterize modern cloud software today.
Marketed as the “candidate management software of the future“, Prescreen enables companies of all sizes to quickly post job postings online (on over 200 job boards) and offline and offer candidates the opportunity to apply directly for vacancies through a career page.
Therefore, Prescreen competes directly with Recruitee. And not just in terms of functionality. Both tools have the same price level. While entry-level rates at Recruitee start at € 79 net per month (4 jobs open), Prescreen costs from € 75 net per month (3 jobs open).
2. Holistic HR suites
Not only are these startups competing with each other, but they must also prevail against established HR software vendors who are also focused on candidate management but have been in the market for a long time. These include Softgarden, eRecruiter, Bite, Coveto, and JobTool 24. There are also a number of comprehensive HR suites that have a recruiting module but support other functional areas as well.
In fact, the subject of personnel management is so comprehensive that it often makes sense to use a 360-degree suite in which the various processes related to payroll, vacation planning, registration can be centrally managed time management, travel expense accounting, staff development, talent management, or absence management. can handle in one place. Thanks to the modular structure of the solutions, companies can start small and then scale the system step-by-step if necessary.
3. Zoho People
Digital personnel files are a good entry point into the digital world of human resources and are available as a standard module of all major human resources suites. This includes, for example, Zoho People. This allows you to centrally store business information, contracts, payroll, sick leave, and other employee documents.
By centralizing employee data in one system, HR departments should achieve greater transparency and easy access to relevant employee data. The concept of self-service plays a central role here. Employees can request their vacation themselves, update their personal data and skills themselves, and log in and out. At the same time, managers have access to all relevant employee information at any time, they can control approvals, plan and approve vacations, and much more. Another advantage of Zoho is the price. With fees ranging from US $ 1 to US $ 5 per employee per month, the program is one of the cheapest alternatives in this comparison
Personio presents itself as another software vendor that has declared war on the chaos of Excel paper and tables and is driving digitization in the human resources area. Unlike Zoho Corporation, which is based in India and employs more than 7,000 people, Personio is a startup that was launched only a few years ago. However, since its founding in 2015, the Munich team has grown surprisingly fast.
Personio now employs more than 100 people and has already raised more than US $ 14 million in capital. With the software, which is marketed as a “human resources operating system” for companies with up to 1,000 employees, companies can centrally manage master data, documents, absenteeism and salaries.
Employee management works with digital personnel files and includes onboarding workflows, time and absence recording, document management, and payroll accounting. In the area of employee development, the cloud-native solution scores with advanced performance and feedback tools not found with all vendors. With Jacando, HR Works, Infoniqa, Forcont, Perbit and Sage HR Suite Plus, more modular HR platforms are available that appeal to medium and large companies and have been successfully established in the market for years.
The days when HR managers had to be satisfied with Excel and other rudimentary office tools in order to cope with their various tasks are long gone. The German cloud now offers many HR services that have all the quality features of modern business software: great features, modern user interface, high usability, simple implementation, as well as transparent and affordable pricing conditions.
This makes the topic of digitizing HR work particularly attractive to small and medium-sized businesses and, according to current analysts, is boosting the German HR market. Customers can choose from the best tools and comprehensive all-in-one solutions, each with its own advantages and disadvantages. Therefore, HR professionals must, depending on their initial situation, be clear about their individual requirements and their digitization strategy to better evaluate the different alternatives and find a solution that grows with their company.