An IDC report predicted that organisations will go on an accelerated Software-as-a-Service (SaaS) shopping spree and make over $25 billion SaaS acquisitions between November 2012 – July 2014. With the significant financial benefits that SaaS solutions offer, the above numbers are not surprising.
In fact, the efficiencies brought on by SaaS solutions are so widely known that HR managers are increasingly adopting and implementing SaaS solutions in their businesses to gain a competitive edge in the market. According to Towers Watson’s 2013 HR Service Delivery and Technology Survey, 88% of organisations will look at SaaS to replace their existing HRMS, and that 1 in 3 of them will ultimately choose a SaaS solution in 2013 – 2014.
What do HR Managers need to know when selecting HR software?
If you haven’t looked into SaaS by now, you should. In this day and age, with the number of businesses using SaaS solutions, it is pertinent that you adopt it, at the very least to keep up with the competition. Otherwise, you essentially forfeit potential business to your competitors.
To truly benefit from SaaS, it is crucial to select a vendor whose solution clearly addresses your business needs. Below are the key features you need to look for:
1. Secure Hosting
Your first priority should be to secure your sensitive data. HR Zone acknowledges that businesses have concerns about data location and privacy, and feel more secure if SaaS vendors invest in security and back-up. Ensure you have all the necessary information on your vendor’s hosting location to avoid any local and international jurisdiction conflicts on privacy. It is also important to understand the different security measures taken by your vendors i.e., SSL certificate and firewall services.
2. Complete HR Solution
The ideal HRMS should comprise of both e-Recruitment and e-HR, essentially acting as a central repository of all HR data. With the two systems in one, it should facilitate and speed up employee lifecycle management processes such as recruitment, application processing, on-boarding, requisitions, performance management, leave, pay slips and off-boarding. This feature will eliminate data duplication and the need for additional data entry, thereby increasing your organisation’s efficiency.
3. Multi-Channel Integration
Integration is key to efficiency. Your HR solution should have the capability to integrate with other systems or platforms such as payroll, time & attendance, social media and job boards. Integrating software with different solutions will save you hours of time as you are essentially consolidating several point solutions into one system, and also using data already entered into the system to auto-populate additional forms or documents. Multi-channel integration is a critical feature to look out as it can also save HR managers from the cost of investing in several software.
4. Ease of Customisation
Ensure that configuration is easy and robust, so that your team can handle it without the need for any programming skills. Customisation capabilities are essential so that your system can work exactly in the way you need. This is especially important when it comes to recruitment systems as you need to ensure an external system has the same interface as your website so that applicants know that they have not been transferred to a foreign website. The ability to make changes to your HR system quickly and effectively will save you time and money in the long run.
5. Transparent Reporting
Reporting is another key factor to be considered before selecting a vendor. Your vendor should have a graphical and turn-key reporting system so that it removes the need for you to understand the database structure. Determine if the interface is easy to use to eliminate any potential interface issues. Additionally, it is more efficient if you can configure the system so that reports are automatically sent to you, on a preferred schedule, to ensure you always have visibility over progress.
6. Organised Implementation, Support and Training
Prior to deciding on a vendor or solution, you must ensure that there is a clearly documented process for software implementation, and policies for support and training. Comprehensive training material and a responsive support team can help you get the most out of your HR solution, especially when updates need to be installed. It is best for you to stick with the vendor with a clearly drawn out plan and appointed support staff to ensure any issues are dealt with quickly and effectively.
7. Flexible Contract
One factor that businesses must be very careful about when entering into an agreement with a HR software provider is the contract. It is important to ensure that your vendor does not tie you down to a contract for a significant period of time. The entire concept of SaaS is based on the premise of pay-as-you-go i.e., paying for what you use. Therefore, you should have the ability to scale your software up or down as necessary without incurring any penalties.
These seven features can guide you on the path of selecting the HR SaaS solution that will deliver maximum efficiencies. However, this guideline will not tell you specifically which vendor or solution to go with. The best way to help you make that decision is to try out the software on a free trial.
Shortlist your vendors based on the above criteria and contact them to get a free trial or a tour of their solution. It is important to get a feel of the solution and the vendor before committing to them.
