Why HR could benefit from a bit of SaaS

In a recent blog I discussed some of the impacts that cloud-based computing is likely to have on HR strategies and policies in the coming decade. The term cloud-based computing is actually used to cover a number of different aspects of computing – including infrastructure, platforms and the software applications themselves. These different variants are typically described as ‘something-as-a-service’.

The *aaS that has most immediate relevance to HR is Software-as-a-Service (SaaS). In this post I look at the specific relevance of the SaaS model in the HR field.

SaaS is the fastest growing part of the business software market and HR is one of the sectors where SaaS is having a real impact. Youmanage is an example of a SaaS company working in the HR space.

SaaS has a many widely-quoted benefits over traditional on-premise software, including lower cost of ownership, faster deployment cycles, built-in ‘future-proofing’ and no big, up-front license fees.

However there are also a number of specific reasons why SaaS makes sense in the HR field, over and above the generic benefits of this software model. The benefits of SaaS in the HR context include:

1. Democratising access to information. HR applications increasingly need to be accessed by every person in an organisation. The old HR software model, where all employee information was stored on a central database that only HR could access, is now widely recognised as inefficient and a barrier to good management. Managers need access to their team’s records or HR policy information, employees need access to be able to book holidays or update their personal details.

SaaS applications are typically built to be easily accessible by a broad population of users. With SaaS it’s far easier to roll-out a new application across an organisation. There’s no need to install software on lots of individual user’s PCs and laptops. All they need is the URL to access the service and their own unique username and password.

2. Enabling mobile workforces. Fewer workers now carry out their roles from a single, fixed physical location. It’s far more common for people to work from a variety of different ‘remote’ locations. HR users need access to their business apps and information wherever they happen to be – whether that’s at an external conference, a satellite office, at home or on a client’s site. With SaaS as long as someone has access to the internet they have access to all of their useful information and tools wherever they are. There’s no more need to bother with the hassle of setting up a secure VPN, which can be a major source of hassle for business users.

3. Easier use of external resources. Many companies today outsource some aspect of their HR. For a small business this might mean utilising an independent HR consultant on a retainer, for a large enterprise it could mean outsourcing a complete business process to an overseas provider.
Closed IT systems can often be a barrier to working efficiently with external HR providers. The use of a SaaS-based system makes it far easier to provide secure, controlled access to relevant data and processes to an authorised third party, without all of the security and IT hassles involved in enabling a third-party to access your internal network.

4. Better equipped end-users. SaaS-based services make it far easier for relevant value-adding content (e.g. training materials, legislative guidance, management tools) to be integrated within the software, thereby providing more comprehensive support to end-users.

An example is Youmanage’s own online HR toolkit, which offers up-to-date guidance on employment legislation and management best practise as an integrated part of the solution. This means that a user (whether that’s a line manager or an HR Business Partner) has easy access to relevant supporting information, at the specific point they are carrying out an action. The SaaS model enables all of this content to be centrally managed by the service provider, thereby reducing the load on central HR resources. This model would be impossible to deliver with traditional HR software, where there are multiple copies of software installed at each individual client site.

5. Less reliance on internal IT teams. HR is often the poor relation when it comes to IT projects for the simple reason that HR systems are not usually seen as mission critical. Therefore HR projects often get delayed because the IT department are busy with other priorities. SaaS-based services typically place no demands on internal IT resources therefore enabling HR teams to move faster and be more responsive to the demands of the business.

According to many of the analysts HR is one of the sectors in which SaaS is making the biggest inroads against the traditional software model. The reasons are easy to see. It's also likely that we're only just now scratching the surface of the transformational benefits that the cloud can bring to HR. Watch this space!