A cloud-based HR management (HRM) system is fully supported by an external provider, accessed online by employees and managers, and standardized right across the company — all divisions, all subsidiaries, all countries. Some organizations have moved part of the way and use a hybrid system, with some HR processes done in the cloud, some outsourced, and some still on proprietary software. But these mishmashes are rapidly being replaced by fully cloud-based solutions. With cloud solutions, in-house IT hardware and support costs can be reduced substantially as the burden is taken on by the provider. With most HR activities supported by self-service, HR professionals are able to re-allocate their focus to strategic work, helping to deliver business goals and concentrate on the strategic imperatives. Most importantly, a cloud-based HRM system can produce real productivity benefits as the adoption of innovative tools leads to workforce optimization, competitive advantage, and greater customer satisfaction.