SaaS (Software as a Service)

What is SaaS?

Software as a Service (SaaS) is an extensively used model under cloud computing in which a service provider hosts and makes applications available over the internet.

Unlike traditional software, which requires purchase and installation on separate computers or servers, software in the SaaS model is accessed through a web browser and is often subscription-based.

This model has made a shift in the way organisations acquire and implement new technology by providing unprecedented flexibility and scalability. In the area of human resource management, workforce management applications are among the most frequently used SaaS solutions, including payroll and performance appraisal systems.

How Do Saas Applications for HR And Workforce Management Operate?

Essentially, the HR department or business utilises a SaaS provider's human resources information system (HRIS), human capital management (HCM) systems, or some specific modules for talent management—often through a subscription model.

The provider takes care of all IT-related work, such as the system's servers, databases, and software updates. Now, human resources specialists and employees log in to the application via web browsers or mobile applications to perform various functions.

An employee may check his or her paystub, an HR generalist may onboard new hires, or managers may conduct performance reviews. The strength of this model is accessibility, coupled with the reduced burden of complicated IT upkeep.

Why Use SaaS in HR functions? Key benefits

Cost efficiency

With SaaS solutions, organisations significantly lower upfront costs compared to traditional on-premise software. In comparison to a SaaS system, an on-premise solution requires businesses to bear hardware costs along with software license fees and implementation costs.

Expansive usability

SaaS solutions expand the horizons of their users, adjusting their use to the changing size of the workforce. This feature is particularly beneficial for new or rapidly fluctuating businesses as it provides a "pay-as-you-go" flexibility.

Accessibility and Mobility

The applications under consideration are cloud-based. Therefore, it is possible to access them anytime, from anywhere there is an internet connection. This is particularly beneficial for remote work settings and employee self-service systems.

Automatic Updates and Maintenance

All software updates, patches, and maintenance are automatic through the SaaS provider. Thus, users will always have the most recent features and security updates with no internal IT load. This also fine-tunes auxiliary administrative processes within the organisation.

Faster Deployment

As the vendor has already set up the infrastructure, SaaS applications are usually faster to deploy than on-premise solutions. For companies looking for a much faster implementation of HR initiatives, this is essentially a boon.

What Potential Concerns Should Be Addressed When Adopting HR SaaS?

Despite the advantages offered by SaaS, there are a few concerns organisations need to address when adopting SaaS HR solutions.

Primary concern is data security and privacy, which entails choosing vendors who have protective measures in place for data, including strong security measures and compliance certifications tailored to the industry.

Having a reliable internet connection is also a concern, as the applications would require consistent online access for use.

Lastly, while customisation is offered on these solutions, they might be less in comparison to on-premise versions, thus requiring an evaluation of the software to confirm it will meet the organisational workflow and long-term strategic needs for workforce planning.

Irrespective of these challenges, reports show modern management workforce trends suggest organisations are increasingly adopting SaaS solutions due to the flexible advantages offered.