On Premise HR Software: A Comprehensive Guide

Bridging the Gap between Technology and Human Resource Management

Greetings to all the HR professionals, business owners, and technology enthusiasts out there! In this digital age, the idea of relying on manual processes for managing human resource operations seems obsolete. With the introduction of on premise HR software, businesses can now manage their employee data, payroll, and compliance-related tasks from a centralized and secure system. But what exactly is on premise HR software, and how does it work? This guide will provide you with all the information you need to know.

What is On Premise HR Software?

On premise HR software is a human resource management system that is installed on a company’s own servers and infrastructure. It is an alternative to cloud-based HR software, which is hosted on remote servers and accessed through the internet. On premise HR software can be customized to meet a company’s specific HR requirements and provides complete control over the system’s data privacy and security. In this way, on premise HR software enables businesses to manage their HR operations while maintaining complete ownership and control over their data.

The Advantages of On Premise HR Software

🔹 Data Security: With on premise HR software, businesses have complete control over their data privacy and security. This is especially important for companies that deal with sensitive employee information.

🔹 Customization: On premise HR software can be customized to meet a company’s specific HR requirements. This enables businesses to automate their HR processes and improve their operational efficiency.

🔹 Cost-Effective: In the long run, on premise HR software can be more cost-effective than cloud-based HR software, especially for larger companies. This is because companies only pay for the initial installation and ongoing maintenance costs, rather than monthly subscription fees.

🔹 Compliance: Many on premise HR software solutions offer compliance-related features, such as ACA reporting, EEO-1 reporting, and OFCCP compliance. This helps businesses stay compliant with federal, state, and local regulations.

🔹 Integration: On premise HR software can be integrated with other enterprise systems, such as ERP or CRM software. This enables businesses to streamline their HR operations and improve their overall business efficiency.

🔹 Control: With on premise HR software, businesses have complete control over the software’s features, functionality, and upgrades. This ensures that the software meets their specific HR needs.

The Disadvantages of On Premise HR Software

🔸 IT Infrastructure : On premise HR software requires a dedicated IT infrastructure to operate, which can be expensive to set up and maintain.

🔸 Upfront Costs: On premise HR software involves significant upfront costs, such as software licenses, hardware, and implementation costs.

🔸 Maintenance: On premise HR software requires ongoing maintenance and updates, which can be time-consuming and add to the overall cost of ownership.

How Does On Premise HR Software Work?

On premise HR software works by installing the software on a company’s own servers and infrastructure. The software is then customized to meet the company’s specific HR requirements. Once installed, HR personnel can use the software to manage employee data, payroll, benefits, compliance-related tasks, and other HR-related activities.

On premise HR software typically consists of modules that cover different HR processes. For example, there may be a module for employee data management, payroll processing, time and attendance tracking, benefits administration, and compliance reporting. These modules can be customized to meet a company’s specific needs and can be accessed by HR personnel through a web-based interface.

On Premise HR Software Features

On premise HR software typically includes the following features:

Feature
Description
Employee Data Management
Allows HR personnel to manage employee data, such as personal information, employment history, and performance reviews.
Payroll Processing
Automates the payroll process, including tax calculations, direct deposits, and payroll reporting.
Benefits Administration
Manages employee benefits programs, such as health insurance, retirement plans, and vacation time.
Compliance Reporting
Generates compliance-related reports, such as ACA reporting, EEO-1 reporting, and OFCCP compliance reporting.
Time and Attendance Tracking
Tracks employee attendance and time worked, including overtime calculations and time off requests.
Performance Management
Enables HR personnel to manage employee performance, including goal setting, performance reviews, and development plans.
Recruiting and Applicant Tracking
Manages the recruiting and hiring process, including job postings, candidate screening, and interview scheduling.

Frequently Asked Questions (FAQs)

1. What is the difference between on premise HR software and cloud-based HR software?

On premise HR software is installed on a company’s own servers and infrastructure, whereas cloud-based HR software is hosted on remote servers and accessed through the internet.

2. How does on premise HR software improve security?

On premise HR software enables businesses to maintain complete control over their data privacy and security. This is especially important for companies that deal with sensitive employee information.

3. Can on premise HR software be customized to meet a company’s specific HR requirements?

Yes, on premise HR software can be customized to meet a company’s specific HR needs.

4. Is on premise HR software cost-effective?

In the long run, on premise HR software can be more cost-effective than cloud-based HR software, especially for larger companies. This is because companies only pay for the initial installation and ongoing maintenance costs, rather than monthly subscription fees.

5. What compliance-related features does on premise HR software offer?

Many on premise HR software solutions offer compliance-related features, such as ACA reporting, EEO-1 reporting, and OFCCP compliance.

6. Can on premise HR software be integrated with other enterprise systems?

Yes, on premise HR software can be integrated with other enterprise systems, such as ERP or CRM software.

7. Does on premise HR software require a dedicated IT infrastructure?

Yes, on premise HR software requires a dedicated IT infrastructure to operate.

8. What kind of upfront costs are associated with on premise HR software?

On premise HR software involves significant upfront costs, such as software licenses, hardware, and implementation costs.

9. Does on premise HR software require ongoing maintenance and updates?

Yes, on premise HR software requires ongoing maintenance and updates.

10. What modules does on premise HR software typically consist of?

On premise HR software typically consists of modules that cover different HR processes, such as employee data management, payroll processing, time and attendance tracking, benefits administration, and compliance reporting.

11. Can on premise HR software be accessed through a web-based interface?

Yes, on premise HR software can be accessed by HR personnel through a web-based interface.

12. What are the advantages of on premise HR software?

On premise HR software offers advantages such as data security, customization, cost-effectiveness, compliance, integration, and control.

13. What are the disadvantages of on premise HR software?

On premise HR software has disadvantages such as IT infrastructure costs, upfront costs, and ongoing maintenance and updates.

Conclusion

In conclusion, on premise HR software provides businesses with a secure, customizable, and cost-effective solution for managing their human resource operations. By owning and controlling their own HR software, businesses can streamline their HR processes, comply with federal, state, and local regulations, and improve their overall business efficiency. If you’re considering on premise HR software for your business, be sure to carefully evaluate your HR needs and the costs associated with implementing and maintaining the software.

Thank you for reading this comprehensive guide on on premise HR software. We hope that it has provided you with a better understanding of this powerful technology and its benefits for your organization.

Disclaimer

The information in this article should be used as a guide only and is not intended as legal or professional advice. You should seek professional advice before taking any action in relation to the matters discussed in this article.