Three advantages of SaaS HRMS

It’s finally happened: the number of Software as a Service (SaaS) and cloud HRMS deployments has overtaken that of on-premises systems. With the SaaS model, rather than purchase the HRMS and install it on your own servers and hardware, the vendor hosts the software and licences it to you on a subscription basis. You access its functionality via a web browser.

According to Sierra-Cedar’s 2015-2016 HR Systems Survey, more than 50% of “purchased core HRMSs are SaaS solutions.” Of course, that’s no reason to go jumping on the bandwagon. The marketing copy for SaaS HRMS solutions is compelling but as a business, you need to take a closer look at how the professed advantages stack up for you.

1. Improved HR services

One factor that benefits any size of organization is the mode of access. With SaaS HRMS solutions, self-service functionality is maximized by being accessible via a web portal. Rather than having to log in at the office, all your staff need is internet access - which means they can tap into the HRMS anytime, anywhere.

Recommended reading: find SaaS HRMS providers to suit your company with our completely up-to-date HRMS vendor guide.

Given that uptake of self-service functions enables employees to conduct a significant amount of routine HR business without needing the HR team, it’s a major cost-cutter and boosts productivity. This is particularly beneficial to organizations with a large proportion of field staff or remote workers as they can access the HRMS by securely signing on via a mobile device, thus benefitting from the same services as their office-bound peers.

2. Reduced costs

One of the key differences between cloud and on-premises options is often the pricing model. Rather than having a licence fee attached, SaaS HRMS applications are usually subscription-based. That lack of licence fee means a lower initial price tag. What’s more, with the cloud vendor handling all the server requirements, the hardware bill (and the cost of employing experts to manage and maintain the hardware) is also significantly reduced compared to a more traditional system.

3. Easier updating

The vendor/supplier doesn’t only take care of the physical hardware - they also handle maintenance and software upgrades. Unlike on-premises solutions, with a SaaS HRMS there are no patches or updates for you to download and install. And with a service level agreement that includes an uptime guarantee, ensuring that the system is running smoothly after an update is the provider’s problem, not yours.

Finally, the key to realizing these benefits lies in your choice of provider. An online directory of cloud computing providers lists 228 HRMS vendors. In other words, the choice is broad, and will only expand in the future. Alongside the well-established business software companies there are numerous new startups and that means, inevitably, that some will be a more secure bet than others. When checking out your potential vendors, look for the following areas of expertise:

  • Multi-tenancy and hosting

  • Performance and scalability

  • Security and compliance

  • Integration with legacy elements

  • Online customer support

A SaaS provider that can deliver these is likely to be one whose system will deliver the above advantages.

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Dave Foxall

About the author…

Dave has worked as HR Manager for the Ministry of Justice for a number of years, he now writes on a broad range of topics including jazz music, and, of course, the HRMS software market.

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Dave Foxall