In order for an enterprise to get the best out of its employees and gain a high return of its investment, the Human Resources (HR) should be well managed. To have a good relationship at Small and Medium Enterprises (SMEs) and to have better practices, using Human Resource Management (HRM) is the option to have them thereby enhancing individual/organizational effectiveness. However, enterprise data are increasing enormously, therefore flexibility, scalability, cost of money, and efficiency are crucial challenges faced by SMEs. Another problem is the separated locations of HRs that result in a communication gap thus slow decision-making, inefficiency in data processing, and inability in reacting to the environmental challenges instantly. To fulfill the above-stated issues, it is a good idea to utilize cloud computing services to handle the massive data in order to improve HRM where the data stored at a central location (i.e. cloud). Therefore, this paper focuses on some cloud-based HRM within SMEs and explores the advantages and challenges of adopting such emerged technology. As a result of this aggregated study, it is clear that cloud adoption improves the HRM, allows the SMEs to expand, manage HRs in a flexible way, provides easy decision-making for the managers, and increases the productivity of the enterprise. The study also showed that one of the most important advantages of cloud adoption for SMEs is reduced cost while the most crucial barrier is security