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 businesses are turning to cloud-based solutions to manage their workflows, manage 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. By implementing a cloud-based solution, 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.
Businesses will experience two primary benefits when 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 the best cloud HR software is 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 oversight of HR.
What are the Elements of a Great SaaS HR System?
So, what components make up the best SaaS HR systems? We’re glad you asked! Check out this handy list of tools your system should offer.
- Smart Candidate Sourcing. A great recruiting system should, at the very least, offer automated job board posting, résumé submission, and pre-screening processes. The best should help you not only source candidates who are actively looking to change jobs but also passive candidates who might not even be in the market, as well as diverse candidates that may be ideal for the role but overlooked by traditional systems.
- Applicant Tracking. A 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.
- Benefits Administration. Just think: with a solution that offers 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 employees can enter their information and make elections themselves 24/7/365, freeing up your HR team to focus on more strategic functions.
- Compliance. Few 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
ofyour compliance concerns. Here’s how:
- Monitoring for changes in tax obligations (especially important if you operate across multiple states or jurisdictions).
- Helping to ensure your employees and contractors are properly classified.
- Making sure policies are compliant with all appropriate local, state, and federal laws.
- Employee Self Service. We 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 team and improves the overall employee experience when they can make their own adjustments to withholding amounts, change contact information, and add or remove dependent information for a qualifying event.
- Learning and Development. Rather 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 Management. Self-administering a leaves program is costly and requires extensive hands-on labor to help ensure compliance with all federal and state regulations. A leaves management module in your HRMS will help manage complex leave of absence rules and time calculations. The software should also manage leave requests and determination of eligibility, as well as take care of the required correspondence and medical certifications.
- Forms, Notices and Announcements. I-9, W-4, 1099-C, direct deposit: So many forms, so little time. Having all 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 your HR team’s hands.
- Performance Management. When 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 improves employee engagement across the organization. Automating the entire employee performance process makes review time easy for everyone.
- Reporting and Analytics. Putting 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 pinpoint problems and take action.
- Talent Management. Your 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.
- Workforce Management. Manually keeping track of timecards and work schedules is time consuming and risky. One small error could affect shift coverage and hurt productivity. Tools that simplify timekeeping and scheduling complexities, optimize staffing, and increase employee engagement are key.
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
With so many features available, it’s easy to get overwhelmed and make the wrong choice. Paycor’s “Buyer’s Guide to HCM and Payroll Technology” outlines the most important features to consider when choosing HR SaaS products, ensuring that you can make an informed decision and select a solution that meets your organization’s unique needs.
Need help determining which HR SaaS products will help your organization grow and remain compliant? Check out Paycor’s Solution Finder.