How Custom SaaS systems are revolutionizing Human Resources

The SaaS market is projected to reach an impressive 232 billion USD by 2024, highlighting the growing popularity and advantages of SaaS technology. Let's explore in detail how a SaaS software solution can transform the workflow of your HR division.

What is a SaaS HR solution?

SaaS, or Software as a Service, HR solutions refer to technologically advanced software designed to streamline HR processes, save time, and provide prompt results by minimizing manual tasks. Depending on your specific needs, you can opt for one of the following types of SaaS HR software:

✅ HR SaaS mobile application
✅ HR management SaaS software system

A standard HR SaaS solution assists human resource managers in various tasks, including:

✅ Ensuring timely payroll processing
✅ Collecting and securely storing essential data
✅ Scheduling meetings and interviews
✅ Streamlining candidate selection using ATS (Applicant Tracking Systems)
✅ Organizing training sessions for different teams

Primary divisions of HR SaaS system

Software development companies develop a wide array of custom SaaS solutions, each with unique features and capabilities. The most common HR SaaS systems include:

Step#1 HRMS (Human Resource Management System): This software is a comprehensive solution addressing all HR needs. It handles a broad array of tasks, from payroll management to the recruitment of new candidates, making it an essential tool for HR professionals.

Step#2 HCM (Human Capital Management): This software focuses on efficient workforce management. It is instrumental in talent acquisition, helping to identify the most skilled individuals for your business. The challenge of finding ideal candidates is significantly eased with an HCM system, which filters applicants based on the company's specific needs.

Step#3 HRIS (Human Resource Information System): This system is designed to eliminate the need for extensive paperwork and manual bookkeeping. In companies with hundreds or thousands of employees, managing and accessing their details can be overwhelming. An HRIS provides secure data storage and easy access, allowing you to keep all employee information in one secure location.

Why do HR business enterprises need SaaS software?

Considering why you should invest in SaaS software for HR? HR departments in business enterprises often face high pressure due to multiple tasks and tight deadlines, along with the need for clear communication among stakeholders, employees, and candidates. HR SaaS software is designed to simplify the lives of HR professionals and enhance their work efficiency.

◾Time-Saving Automated Processes

Investing in an HR SaaS system can significantly reduce the workload of your human resource managers and executives. By leveraging modern technologies to automate various tasks, it helps lessen the work pressure on your HR staff. This allows them to concentrate on more critical and tangible tasks, rather than being bogged down by paperwork.

◾Secure Data Management

The HR department typically handles a vast amount of data, including employee details, payroll information, candidate resumes, and more. An HR management system facilitates the easy and secure management of this data, safeguarding it against data theft or privacy breaches. With built-in filtering options, your team can quickly access files without the need to manually segregate them.

◾Efficient Talent Acquisition

The process of contacting and selecting the best candidates from a large pool, particularly for multiple roles, can be daunting. A Human Capital Management system streamlines this process. It not only identifies eligible candidates but also schedules interviews and calls, aiding companies in connecting with highly skilled talent.

◾Convenient Access with Cloud-Based Profiles

Being cloud-based, HR SaaS systems offer the convenience of access from anywhere. This is particularly useful for HR professionals who need access to information in emergencies. Developed with cross-platform compatibility and diverse device specifications in mind, these systems ensure that all necessary resources and information are readily accessible, fostering an engaged and well-informed workforce.

◾Fostering a Positive Workforce Culture

HR SaaS software systems play a crucial role in cultivating a harmonious workplace. They streamline administrative functions, thereby reducing stress and lowering the likelihood of errors. Employees have easy access to information on policies and benefits, ensuring they are well-informed. Decisions are made based on data-driven insights, enhancing public confidence. The presence of open communication channels and self-service options empowers employees to manage their work-life balance effectively. This contributes to a workplace environment that is more supportive and conducive to employee satisfaction and happiness.

You may also like to read: A Complete Guide to Building B2B SaaS Mobile Apps

Popular features of SaaS solution for HR management

The software development market has tens of thousands of firms across the country offering high-end development services with premium features. Feature selection depends on your workflow and business needs. If you are still confused about the top features you should add to your system, here is a list of the common and popular features of HR SaaS software:

1. Employee self-service section: Many SaaS HR solutions typically offer self-service portals for use by the employees or managers. These portals allow workers to provide an update for their data; view payroll records; make a leave application/request; and enroll for various employee benefits without interference from the HR. It helps cut down on administrative costs and makes employees feel like they oversee their own HR related tasks.

2. Applicant tracking systems (ATS): ATS are normally incorporated in SaaS HR software for finding talented candidates. The recruitment process of HR teams becomes smoother through posting advertisements, sorting applications, and planning for interviews with these systems installed. This can save employers’ time and money since these systems also play the role of maintaining a database of potential future candidates.

3. Online attendance marking: The pandemic heavily transformed our ways of working with many companies adopting a work from home or hybrid work model. An HR SaaS system allows all employees to mark their attendance on time even if they are working from home or anywhere else. This feature provides ease to the employees and fosters a feeling of respect and trust.

4. Regular training session conductor: One should never stop learning and all leading businesses help their employees in upskilling. Retaining top talents requires investing in employee development. A lot of SaaS HR solutions feature LMS or Learning Management System to allow businesses to develop, implement and monitor educational programs. The systems that are in place may as well be used for identifying such gaps and developing appropriate and personalized development programs for each employee.

5. Third-party integrations: SaaS HR solutions normally integrate smoothly with other applications used in a business, like payroll, time and attendance tracking, and finance software. Integration between the different systems enhances data movement and eliminates manual data input to improve efficiency in the work of HR personnel who can base their decision on data.

SaaS HR solution and performance management

Efficient and hassle-free performance management is the goal of every small business company, and to accomplish this goal requires significant forethought, architecture, scoping and development. That said, here’s a few pointers on how a SaaS HR solution ensures performance management:

➤ Streamlined Feedback Process

Implementing a SaaS HR system simplifies the feedback process, enabling clear and prompt communication. This system allows for more immediate and effective feedback exchanges compared to traditional methods.

➤ Encouraging Continuous Improvement

Traditional employee reviews, or employee appraisals, often conducted annually or semi-annually, can delay addressing performance issues. In contrast, SaaS HR solutions facilitate ongoing feedback, fostering a culture of continuous improvement. Regular meetings and dialogues between managers and employees can be held to discuss various issues, allowing for more timely and relevant feedback.

➤ Aligning Individual Goals with Organizational Objectives

In any organization, while satisfactory performance is crucial, it's equally important that this performance aligns with the organization's goals and values. SaaS HR solutions aid in linking employees' objectives with the broader business goals. This alignment ensures that individual efforts contribute meaningfully to the company's overall success, creating a more unified and goal-oriented workforce.