Best Cloud HR Software Of 2024 (2024)

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• The Best Cloud HR Software of 2024
• Why You Can Trust Forbes Advisor Small Business
• monday.com: Best Overall
• Paycor: Best for Small Businesses
• Rippling: Best for Global Workforces
• BambooHR: Best for Custom Workflows
• Workday: Best for Enterprise Companies
• Zenefits: Best for Startups
• UKG Pro: Best for AI Solutions
• Freshteam: Best Free Option
• ADP Workforce Now: Best for Payroll
• Sage HR: Best for Leave Management
• Summary: Best Cloud HR Software
• How To Choose the Best Cloud HR Software
• Benefits of Cloud HR Software
• Methodology
• Frequently Asked Questions (FAQs)

• monday.com: Best overall
• Paycor: Best for small businesses
• Rippling: Best for global workforces
• BambooHR: Best for custom workflows
• Workday: Best for enterprise companies
• Zenefits: Best for startups
• UKG Pro: Best for artificial intelligence (AI) solutions
• Freshteam: Best free option
• ADP Workforce Now: Best for payroll
• Sage HR: Best for leave management

The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.

To find the best cloud HR software, we considered nearly 25 of the leading providers in the space, which we then evaluated across five key categories and 34 different metrics. Our ratings consider factors such as transparent pricing, employee self-sufficiency, compatibility with third-party integrations, access to customer support and ratings. All ratings are determined solely by our editorial team.

When it comes to choosing the best cloud HR software for your business, there are several factors to consider. From features and scalability to cost and customer support, it’s important to evaluate your options to make an informed decision. In this section, we’ll walk you through the key considerations and help you determine which cloud HR software is the best fit for your organization.

Essential Features

• Employee database: A centralized location to store and access employee information easily, including personal details and employment history.
• Automated HR processes: The ability to automate tasks, such as time-off requests and shift changes, to save time and reduce errors.
• Reporting and Analytics: The ability to create custom reports and gain insights into HR data, such as employee attendance and turnover rates.
• Leave management: A digital system for tracking and approving time-off requests and ensuring compliance with company policies and legal requirements.
• Time tracking: A fast and easy way for employees to track overtime and for managers to monitor labor costs.
• Shift scheduling: Flexible and functional scheduling tools for creating and managing employee shifts and ensuring adequate coverage.
• Expense management: A mobile app for submitting and managing company expenses, including tracking receipts and approving reimbursem*nts.
• Onboarding: A streamlined process for onboarding new employees, including document management, compliance checks and training.
• Self-service: An employee-facing portal for accessing and updating personal information, such as payroll and benefits.
• Mobile access: A mobile app for managing HR tasks and accessing information on the go, including approving time-off requests and accessing the employee directory.

Types of Hosting Services

Cloud HR hosting services come in a variety of forms, each with its own set of features and benefits. The main types of cloud HR hosting services include:

• Software as a service (SaaS): This type of service is delivered over the internet and requires no installation or maintenance on the part of the user. SaaS solutions typically are subscription-based and offer features such as payroll, benefits and talent management.
• Platform as a service (PaaS): PaaS solutions provide a platform for users to develop, run and manage their own HR software applications. These solutions typically provide tools and services such as databases, servers and development environments.
• Infrastructure as a service (IaaS): IaaS solutions provide users with access to the underlying infrastructure of the cloud, such as servers, storage and networking. These solutions typically are used by businesses that need a high level of control over their HR systems and are often used in conjunction with other types of cloud services.
• Hybrid cloud: A hybrid cloud solution combines the benefits of both public and private clouds. This allows companies to have sensitive data stored and processed on-premise while also taking advantage of the scalability and cost-effectiveness of public cloud for other workloads.
• Multicloud: Multicloud solutions allow companies to use multiple cloud providers for different purposes. This allows for greater flexibility and can help to avoid vendor lock-in.

Ease of Use

When selecting a cloud-based HR software, ease of use is a crucial consideration. A platform that is intuitive and user-friendly will be more likely to be adopted and used by employees and managers, leading to greater productivity and efficiency. Some key features to look for in a user-friendly cloud HR software include:

• A clean and simple interface that is easy to navigate
• Customizable dashboards and reports that allow users to quickly access the information they need
• Automated workflows that streamline common HR tasks, such as time off requests and onboarding
• Mobile-friendly design that allows users to access the platform from any device
• Self-service portals for employees to access their own HR information and complete tasks independently

Security

Security is a critical aspect to consider when choosing cloud HR software. It is essential to ensure that the software you choose meets industry-standard security protocols and has robust measures in place to protect sensitive employee and company information. Some key security features to look for in cloud HR software include:

• Data encryption: Ensure that all data stored in the cloud is encrypted to protect it from unauthorized access.
• Access controls: Make sure that the software allows for granular access controls, so that only authorized personnel can access sensitive information.
• Multifactor authentication (MFA): Look for software that requires multiple forms of authentication, such as a password and fingerprint or facial recognition, to further secure user accounts.
• Regular security updates and patches: Choose software that is regularly updated to address any potential security vulnerabilities.
• Compliance with industry regulations: Ensure that the software you choose is compliant with any relevant regulations, such as Health Insurance Portability and Accountability Act (HIPAA) or General Data Protection Regulation (GDPR), depending on your industry and location.
• Regular security audits and penetration testing: Look for software that undergoes regular security audits and penetration testing to ensure that it can withstand cyberattacks.
• Data backup and disaster recovery: Ensure that the software has a robust data backup and disaster recovery plan in place to protect against data loss.
• 24/7 customer support: Make sure that the software has a dedicated customer support team available to assist with any security-related issues.

Integrations

Integrations refer to the ability of software to connect and communicate with other software, platforms and tools. In the context of HR software, integrations are important for several reasons:

• Data sharing: Integrations allow HR software to share data with other systems such as payroll, accounting and time tracking. This helps to automate HR processes and eliminates the need for manual data entry.
• Workflow optimization: By integrating with other tools, HR software can streamline workflows and improve efficiency. For example, by integrating with a calendar tool, HR software can automatically schedule interviews or shift changes.
• Customization: Integrations allow HR software to be customized to meet the specific needs of an organization. For example, by integrating with an applicant tracking system, HR software can be tailored to streamline recruiting processes.
• Improved reporting: Integrating HR software with other systems such as financial, enterprise resource planning (ERP) or customer relationship management (CRM) can help to provide a complete picture of the organization and its performance, which can be used to improve decision-making.

Customer Support

Customer Support is a crucial aspect to consider when choosing cloud-based HR software. It is important to have a reliable and responsive customer support team that can assist you with any questions or issues that may arise.

Look for software that offers various modes of support such as phone, email, live chat and a comprehensive knowledge base. It’s also a good idea to check for reviews and ratings of the software’s customer support before making a decision.

Some key points to consider when evaluating customer support include:

• Availability of support: What are the hours of support? Is there 24/7 support available?
• Response time: How quickly does the support team respond to inquiries?
• Quality of support: Are the support team members knowledgeable and helpful?
• Self-service resources: Is there a comprehensive knowledge base or user manual available?
• Training and onboarding: Does the software provider offer training and onboarding support to ensure a smooth transition to the new system?

• Time-saving: Cloud HR software automates many of the repetitive tasks associated with HR management, such as tracking employee attendance, managing time-off requests and processing payroll, freeing up HR staff to focus on more strategic projects.
• Cost-effective: Cloud-based solutions are typically less expensive than on-premise solutions, as they eliminate the need for expensive hardware and software.
• Scalability: Cloud-based solutions can easily scale up or down to meet the changing needs of a business, making it easy to add or remove users as needed.
• Improved data security: Cloud-based solutions generally offer robust data security measures, including encryption and frequent backups, to protect sensitive employee and payroll data.
• Increased accessibility: Cloud-based solutions allow employees and managers to access HR data and tools from anywhere, at any time, using a web-enabled device.
• Improved collaboration: Cloud-based solutions often include tools for collaboration and communication, such as shared calendars, document sharing and employee directories.
• Better insights: Cloud-based solutions typically offer advanced reporting and analytics capabilities, giving businesses more visibility into their HR data and allowing them to make more informed decisions.
• Remote working: With the rise of remote working, a cloud-based solution allows employees to access information and tools from anywhere and collaborate with their colleagues remotely.

We reviewed dozens of HR solutions and rated each based on a one to five metric system in a number of different categories to land a final overall rating between one and five. Each category was weighted based on the importance of that aspect of the software to calculate the final score. These ratings were based on experience using the software and research that we have found available through either the company or through the use of the product.

Here is what we looked at to determine the best cloud HR software:

Pricing

For pricing, we considered the cost per user per month for each paid plan, minimum user requirements, introductory pricing, the availability of free trials, free trial length and money-back guarantees. Pricing accounts for 10% of our total score.

Key Features

We analyzed each HR app based on key features, such as cloud-based software that is accessible from anywhere, as well as the inclusion of key features such as applicant tracking, benefits administration, payroll, time and attendance tracking, e-signatures, learning management tools, reports and analytics, employee feedback and reviews, org charts, task assignments and peer reviews. These core features make up 30% of our score.

Unique Features

On top of the core features mentioned above, we also allocated 15% of our score to whether or not providers included unique features such as the availability of software Integrations, shift scheduling, employee engagement tools, tax tools, custom branding, PTO tracking and live support. This category makes up 20% of our score.

Ratings and Reviews

For a deeper look into how others find the HR software, we looked at customer reviews to determine if user experience matches marketing promises. We considered each provider’s average rating and how many reviews each had and weighed them at 10%.

Expert Score

We also added our expert opinion based on a great deal of first-hand experience using the various HR solutions. This includes qualitative factors such as ease of use, value for price based and popularity. The expert score accounts for 30% of the total score.

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