Role of HR based SaaS for Young Entrepreneurs

The modern era is one where we all seem to be living and working in the Cloud, and software solutions are no exception. Gone are the days when software had to be purchased outright and installed on a system or a number of systems in order to be used. Technological developments have provided us with new and improved ways of purchasing and using software. One example of this is the widely-used HR based SaaS system.

For anyone who works in HR, the term Software as a Service (SaaS) is not unheard of as it seems to be everywhere lately. But what exactly is SaaS, how is it different from other HR based solutions and how can the average young entrepreneur benefit from it? In this blog, we discuss everything you need to know about the role of HR based SaaS, so that you can decide whether it is the best solution for your human resource management needs.

What is Software as a Service?

SaaS refers to software that is accessible on a browser, instead of as an application saved on your computer.

Regular software is installed on your machine. This means you need to first install it on your system, ensure there is enough storage for all the related files and data and install updates on a regular basis to keep it running. SaaS, on the other hand, offers a whole new experience to its users altogether.

How is SaaS different from other software?

A SaaS system comes with the following features:

  • Instead of being installed on your systems, SaaS is held in the Cloud i.e. the company’s server.
  • Instead of having to purchase the software outright to use it for your business, you are required to pay a subscription fee. This may be payable monthly, quarterly or annually.
  • The SaaS provider takes care of the maintenance of the software. You do not need to train your technical staff to resolve issues on the software because it is the responsibility of the SaaS provider.

As all of the business’ functions, including the management of its human resources, become increasingly complex and usually include the processing and maintenance of large amounts of sensitive data, software that is maintained on the cloud is the best solution.

When you choose to work on SaaS, you get an online HR system that stores all your HR-related data in the cloud – you do not need to put any burden on your existing systems, your data is secure and there is no need to keep up with regular updates to continue using the software. And since there is no high initial cost to purchase the software and you have the convenience of paying as you go, SaaS is normally an affordable HR solution even for young, small-sized businesses.

If you are wondering whether SaaS will be the right option for your small business, you can consult a MyHRAdvisor who will evaluate your existing HR system and suggest whether SaaS will be the right solution for your business. Unlike internal staff, MyHRAdvisor consultants are have extensive knowledge of systems like SaaS; they can help make the transition to the new SaaS sytem a lot smoother and quicker and even assist in training the internal HR staff on the new system. Moreover, they can help ensure that your small business is getting the most of your SaaS system by evaluating your current use of the software and suggesting ways to maximize its usefulness for your business.

The Role of HR based SaaS for your small business

An increasing number of businesses are switching to cloud-based solutions to manage all aspects of their business. From accounting and supply chain management to HR and customer relationship management, businesses are reconsidering their software needs for various business functions and finding cloud-based systems a great alternative.

An HR based SaaS system allows small to medium-sized businesses to manage all of their HR tasks online. This way, the HR department is able to delegate all repetitive manual tasks such as maintaining physical timesheets and calculating overtime to the online system. Moreover, there is no need to maintain large amounts of unnecessary personnel records on paper when you have an online system.

An HR based SaaS system can take care of the following HR functions for your business:

  1. Payroll administration – Without online records of personnel data, payroll administration can be a frustrating task that involves a significant amount of paperwork. With a cloud-based system, the benefits and deductions calculations can be automatically integrated with your payroll system. Not only does this free up significant time for your HR staff to focus on more important work, but it also eliminates the chance of human error and ensures greater accuracy in payroll administration.
  1. Leaves management – Maintaining a record of staff leaves is a mundane and time-consuming task when performed manually. A SaaS system can eliminate the need to do it manually as well as perform all the related payroll calculations. It can determine the eligibility of leave requests based on the leaves policy and assist with related communications and medical records.
  1. Compliance – As important as it is for every business to comply with laws and regulations, keeping up with any changes in them is not easy, especially for an entrepreneur who has so many other things to look after and may not have the specialist knowledge to do so. A SaaS system takes away your compliance concerns by monitoring changes in tax legislation, ensuring all employees are classified correctly and that company policies are in line with all relevant laws and regulations.
  1. Performance management – An efficient performance management system encourages employees to perform their best, as they know they will be held accountable for poor performance while good performance will be rewarded. SaaS can automate the entire performance management system for your business, making performance reviews a smooth, hassle-free process for both the management and employees.

Moreover, it can automatically produce reports on employee turnover, attendance, working times and overtime, which help identify problems and take corrective action in a timely manner.

  1. Recruitment and selection – A SaaS system can make the recruitment and selection process a lot simpler. It automates the job postings and assists with the pre-screening process. Moreover, it helps with the scheduling and confirmation of interviews and has email templates that make communicating with potential candidates a breeze.
  1. HR forms, documents, and notices – SaaS automates all the HR forms, documents and notices your business will need and integrates them with the payroll system. This makes many HR tasks so much easier to perform, especially in a small business where expert knowledge is not always available.

What benefits does SaaS bring for a small business?

Here are some of the benefits of SaaS for a small business:

  1. Easy to set up: Since there is no installation required, setting up a SaaS system is fairly simple and quick. You only have to subscribe to the service, create a profile for your business, select your preferred modules and start using the system. The SaaS provider will provide you all the support you need to get started.
  1. One-stop solution for all your HR needs: One of the main reasons why SaaS is becoming increasingly popular amongst new and small businesses is the fact that it provides a single platform that manages all the HR functions. It eliminates the need to depend on different systems for different tasks and reduces paperwork.
  1. Saves time: Without the use of a cloud system, a small business often manages its HR tasks through the use of Excel spreadsheets, manual attendance and timesheets, and informal HR systems. SaaS automates various HR functions and simplifies them, significantly saving time for the HR department.
  1. Cost-efficient: SaaS comes with different subscription packages that you can choose according to the needs of your business. You only have to pay for the features you need, which makes it a very feasible option for small businesses. There is no heavy initial investment in hardware, software or any other set-up. You also have the option to upgrade or downgrade your package as you wish.
  1. Security: HR based SaaS systems come with a high level of security. In fact, it is safer than other types of software that store information on your systems. On a cloud-system, only authorized staff members are able to view and edit the information on the system and data encryption technology is used to protect your information from hackers.
  1. User-friendly: SaaS comes with an easy to use interface, which makes it a great choice of software for smaller businesses to implement. Both the entrepreneur and the employees should have no problems adapting to it quickly.
  1. Automatic updates: With a cloud-based system, your software is updated automatically on the server. Whenever there are new features or updates, you will be able to benefit from them instantly without any hassle. Maintenance of the software is the responsibility of the SaaS provider, allowing you to continue using your software without any problems.

To sum up, HR based SaaS solutions are an excellent choice for any young entrepreneur looking for an efficient human resource management system for their business. It can help you manage all aspects of your HR from a single platform, as it stores all your personnel data in one place, allowing it to use it for multiple purposes as needed.

The market for SaaS systems is still relatively new but it continues to evolve with time and bring better solutions for its customers. As businesses today are constantly faced with the pressure to perform their functions with greater speed, depth, and accuracy than ever before, HR based SaaS solutions provide an ideal way to streamline the business’ HR function and maximize its efficiency.

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