Software as a Service (SaaS) is the term used for software that’s delivered and used entirely online or in the cloud, meaning that no software is actually installed on employees’ hard drives.
More and more businesses are turning to cloud-based solutions to manage their workflows, run accounting and control their supply chains, often as part of a larger enterprise resources planning (ERP) solution. Probably not surprisingly to most, the HR function is no exception. A SaaS human resources solution can enable small and midsize business owners to control every aspect of their employee management tasks online. And in doing so, HR departments can eliminate mundane and error-prone manual tasks such as wrangling multiple spreadsheets and managing physical time cards, while also preventing paper personnel records from bursting out of overloaded filing cabinets.
The best HR SaaS solutions provide unified tools and solutions that help you oversee all HR activities. Core HR tasks previously handled by practitioners, such as employee verifications, application processing and benefits administration can now be effectively delivered via self-service in a cloud computing environment. Top-tier human resource management systems (HRMS) are customizable and give HR plenty of options for making design or function changes, such as adding company branding and configurable fields, without the big price tag typically found in custom systems sold by software vendors.
There are two primary benefits of implementing a SaaS HR system:
- Increased productivity for manager and employees
- More time to focus on strategic initiatives rather than administrative tasks
By automating HR processes, you can take the tactical burden off your shoulders. And because SaaS HR applications are also scalable, you can quickly and easily implement new features as your business changes or grows. For example, as your company hires additional employees, you may find the need to add a learning management system to keep team members up-to-date on trainings without involving the presence of HR.
The ABCs of a Great SaaS HR System
So, what components make up a great SaaS HR system? We’re glad you asked! Check out this handy list of tools your system should offer.
- Applicant Tracking and RecruitingA good applicant tracking system should boost productivity, arm you with valuable reporting metrics and make the recruiting process feel smooth and seamless. It should include:
- Email templates to take the hassle out of communicating with candidates.
- Interview scheduling that integrates with your company’s email system to help you schedule and confirm interviews.
- Automated job board posting, résumé submission, and pre-screening processes
- Benefits AdministrationJust think: with online employee benefits administration, you’ll never again have the aggravation that comes from dealing with paper open enrollment packets. With cloud computing, your benefits enrollment and deductions are automatically tied to your payroll system, meaning no more manual duplicate data entry. Even better, with employee self-service, your people can enter their information and make elections themselves 24/7/365, freeing up your HR department to focus on more strategic functions.
- ComplianceFew things fill HR practitioners with dread more than the word “compliance.” With changes in laws and regulations that affect your employees happening almost every day, it’s nearly impossible for your team to keep up. A great HR SaaS solution will manage all of your compliance concerns.
- Here’s how a solution can help:
- Monitoring for changes in tax obligations (especially across multiple states or jurisdictions)
- Ensuring employees and contractors are properly classified
- Making sure policies are compliant with all appropriate local, state and federal laws
- Employee Self ServiceWe mentioned employee self-service (ESS) in the benefits administration section, but ben admin isn’t the only thing ESS can help you tackle. It can also help reduce the burden of data entry on your HR teams when employees can make their own adjustments to withholding amounts, change contact information, and add or remove dependent information for a qualifying event.
- Learning and DevelopmentRather than being stuck in a classroom all day, most of your employees want training they can complete at their own pace, when and where it’s convenient for them. This is especially true of Millennials and Gen Z, who value development opportunities more than their counterparts. Your HR management software should include a module that combines virtual, classroom, mobile and social capabilities on one platform so employees can learn in the environment that best complements their styles.
- Leaves ManagementSelf-administering a leaves program is costly and requires extensive hands-on labor to ensure compliance with all federal and state regulations. A leaves management module in your HRMS will help manage highly complicated leave of absence rules and time calculations. The software should also manage leave requests and determination of eligibility, as well as handle the required correspondence and medical certifications.
- Forms, Notices and AnnouncementsI-9, W-4, 1099-C, direct deposit: So many forms, so little time. Having all of these forms automated and tied directly to your payroll system is an incredible time and space saver. Combine this functionality with the ability to send approval reminder notices and open enrollment announcements, and you’ve just taken a load off of your HR team’s hands.
- Performance ManagementWhen done wrong, everyone hates the performance review process. But when it’s done right, a performance review can help employees reach their full potential and keeps them engaged in their roles and in the organization. Automating the entire process makes review time easy for everyone.
- Reporting and AnalyticsPutting a bow on the package, a great SaaS HR system must provide actionable insights. All the employee data in the world isn’t good enough if you don’t know what to do with it. Having the ability to see dashboards with turnover, headcount, overtime, time and attendance, benefits and more will help you can pinpoint problems and take action.
- Talent ManagementYour greatest asset is your people. A talent management system can help you easily look at all your job roles and who’s in them to determine where you might have gaps. It should also keep tabs on your retention rate and hiring costs, monitor tenure and how long it takes to fill open positions, as well as calculate the revenue your full-time employees generate.
As you conduct your research and build a case for implementing a new SaaS HR solution, using this list can help you illustrate to your leadership team how the right technology and expertise can make a huge difference in productivity, cost, and employee engagement.
Paycor’s Solution Finder
Need help determining which HR SaaS products will help your organization grow and remain compliant? Check out Paycor’s Solution Finder.