ActivHR Consulting Ltd

SaaS Drives Change in HR

Friday, 07 August 2009 08:26


Software as a Service (SaaS) is the new method for putting HR and benefits information on the employees desktop. For decades companies have been running software on their own architecture. SaaS is a new delivery model where companies pay not for owning the software itself but for using it.

SaaS, meaning delivery of software applications and data over the Internet, is becoming increasingly popular as it simplifies deployment and reduces acquisition costs. Often charged on a monthly per user fee, SaaS provides an affordable way to empower employees to self-service through an HR Portal. The most popular applications being: holiday booking, absence management, personnel data management, on-line pay-slips, staff handbooks and benefits communication.

HRM, Flexible Benefits and Payroll systems are being delivered as SaaS and with licence fees as low as £2 month per employee, small-medium enterprises as well as large corporates are now adopting SaaS as an affordable way to implement HR applications.

SaaS is perfect for HR and benefits communication as it allows real time communication and interaction with the whole work force, whether they are local or global, and to quickly deploy new features and functionality onto each employee desktop, with instant messaging as employee data is updated.

SaaS is predicted to grow seven times faster than traditional on premise software during the next three years and by 2011, 25% of new business software will be delivered as SaaS (Source: Gartner). This creates a tremendous opportunity for HR to change the way they communicate and manage information. No longer does data need to be confined to the HR department or do employees have to wade through generic, and often irrelevant, information. With SaaS, HR can get right onto the employees desktop and have personalized communication with instant access to push and pull data and information. There’s no better way to keep HR in front of employees in the workplace and to get instant management information and alerts as data changes.