As I am working on this blog right now, there would be quite a few companies where in the IT and HR teams would be evaluating one of the available SaaS HR solution to be implemented as a part of the IT and HR strategy for the coming year.
The question is why has SaaS HR implementation found its way
in the HR strategic roadmap for most of the companies? Is the return on
investment so lucrative to justify this sudden hype about SaaS HR.?
Researches have shown various list of driving forces which
are shaping the SaaS HR industry. Listed down a few for quick reference:
1.
Cost optimization (shift to OPEX model)
2.
Information delivery/Data delivery
3.
Swift implementations
4.
Increased employee engagement
5.
Increased mobility
With todays “on the go”
approach in every aspect of life, employees are wanting a faster medium of
accessing data to either enable them to
take informed decisions about the talents present in their team, simulate their
career development path or enabling HR team to plan the training programs for
the year. With many driving forces being listed in various researches, the one
I find worth highlighting and dedicating this article to “Information delivery/Data
delivery”.
Increasing maturity levels of users using business intelligence
tools have led to a pressing need of highly advanced analytical capabilities.
However the current on premise solutions do not seem to be practical enough to
have such advanced analytics in place as it would involve custom developments, increase
in consulting man hours and most importantly the cost of such developments
vis-à-vis the final outcome.
This is where SaaS within HR plays a vital role of giving a
platform which consists of industry standardized best practices already
available thus not having to reinvent the wheel. With SaaS, accessing critical information
has never been so easy for decision makers!
Having people critical data readily available to make
informed decisions help companies to increase employee engagements, funnel
resources into important business areas, validate existing processes and
achieve what customers have earlier found it difficult to attain with the on
premise solutions, i.e. “HR Process Streamlining”
Thus a data driven approach has led many companies to look at
faster and simpler alternatives which can provide business critical information
which has in turn increased the importance of putting SaaS HR as a part of
their strategic roadmap
Its long due that HR departments start to function as a
strategic function to the business and SaaS HR absolutely gives this
opportunity to help HR shift their focus from administrative tasks to more
strategic tasks.
Do share your perspective or any queries that you may have,
would be glad to discuss
Have shared below a few findings below that gives an overall
perspective of SaaS HR trends
Spending on cloud-based HR software is growing faster than
spending on installed or on-premises HR software, and cloud-based HR
software will be 50% or more of
total HR technology spending by 2017. (Source: Gartner)
48% of HR and
talent professionals want to replace their current HR software with a
cloud-based system by 2018. (Source: Information Services Group)
Regards,
SaaS HR Hub
