Straight Talk about Software-as-a-Service HR Solutions
…and why you’d want one over an installed in-house system.
If the difference between an installed in-house HR system (one that you own) and a hosted Software-as-a-Service (SaaS) HR Information Systems (one that you use) was as simple as the initial outlay of dollars, you could build the same kind of argument when you consider purchasing or leasing a car. However, unlike the car analogy, the price of the software is merely the tip of the cost iceberg.
If we start with the fact that the SaaS delivery model can deliver the same HR functionality as its installed counterparts, we can then focus on the true benefits of SaaS. Those benefits can be summarized into a few distinct categories: cost and time savings, simplicity and access, growth and evolution, and configurability and customization.
On-Demand Software Saves Money
Installed services charge steep upfront licensing fees and ongoing maintenance costs that are often difficult for corporate budgets to absorb. When you add the hardware and personnel costs associated with purchasing and maintaining servers, housing them, installing and maintaining the programs and providing the necessary back-up systems, then the cost of an installed system becomes an ongoing, expensive and quite often unpredictable variable. Finally, in 4-6 years you get to do it all over again when it’s time to upgrade to a new version or platform.
On the other hand, hosted systems are generally billed on a monthly basis according to the number of records and functionalities required. Aside from typical one-time fees for configuring the system to your needs, there are usually no other costs involved, thereby eliminating the capital expenditure line from your financials and leaving you with manageable usage fees only. It’s as simple as that.
SaaS Systems are Time Efficient
From an implementation standpoint, SaaS applications can be up and running in a fraction of the time required for installed systems. This rapid deployment is feasible because SaaS providers use their own systems to host the software with the security protocols and architecture already established; they are set up to load, manage and maintain data every day.
On-Demand Provides Continuous Access
From an access standpoint, on-demand software is available continuously. Managing the servers and insuring their ongoing performance is a core competency of the provider. In practice, providers are likely to be aware of any system problem long before their clients, and should be expected to have solutions in place to rectify situations quickly. And because the system is accessed via the Internet, authorized users can access the system from remote locations on a 24/7/365 basis.
On-Demand Allows for Growth as Companies Grow
SaaS systems have the capability to grow with a company as its needs evolve. It is not at all uncommon for a company to begin an HR relationship with an on-demand provider for HR Management Software functionality, and then later add Talent Management modules such as Compensation Management, Succession Planning, Performance Management and Applicant Tracking modules as the company grows. On-demand applications make this an extremely viable process for users, and some providers have the ability to make it even easier based on their individual platform set-up.
SaaS Enables Configurations to Meet Your Needs
Most on-demand SaaS systems are designed to allow customers to tailor their system to fit the organization without the need to customize the software itself. These types of configurations are noticeably faster and less costly than those of installed systems whose technology typically requires customizing of code to produce the same changes.
On-Demand Systems are Highly Secure
Security in the SaaS world applies to data, people and facilities. In single-tenant architecture systems, data is segregated on its own server (or virtual server) providing the highest levels of security. Access to information is controlled based on customer policies, thereby allowing each user to have specific access to information depending on his/her role or security level.
As it relates to global companies, on-demand models have security measures in place to meet data integrity and transfer requirements for individual countries. Additionally, having data off-premises could allow access to critical employee information in the event of a catastrophic event. The growth of on-demand models, especially in the highly sensitive area of Human Resources could never have been achieved without the ability to demonstrate, and not just promise, the highest levels of security.
Whether your company is a growing midsized venture, or a global enterprise with tens of thousands of employees, SaaS HRMS systems are the right choice for everything from costs to security, configurability to growth potential, efficiency to access…and everything in between.