Cloud Computing for SME HR Management: Enhancing Efficiency and Scalability

Abstract

For small and medium-sized businesses (SMEs), the quick advancement of cloud computing technology presents revolutionary possibilities in human resource management (HRM). Traditional HRM systems often fall short in addressing the dynamic and diverse needs of SMEs due to limited resources, outdated management practices, and scalability challenges. This paper explores the integration of cloud computing technology into SME HRM systems, emphasizing its potential to enhance talent acquisition, performance management, and payroll processes. By leveraging the scalability, flexibility, and resource-sharing capabilities of cloud platforms, SMEs can achieve process-oriented, standardized, and transparent HRM practices comparable to those of larger enterprises. A conceptual framework for a cloud-based HRM platform tailored to SMEs is proposed, highlighting its architecture, key components, and implementation flow. Through clever data analysis, this method not only optimizes resource allocation and lowers expenses, but it also facilitates strategic decision-making.