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Transitioning to SaaS HR: A Game-Changing Move

In today’s ever-changing business world with the need to expand and grow, organisations are rethinking how they operate. The same applies to the responsibilities of the human resources (HR) department as well. How can HR evolve alongside the growth and expansion of the organisation?

One solution is to use software-as-a-service (SaaS) for HR. In fact based on Deloitte’s Payroll Operations Survey, close to one-thirds of organisations are already using SaaS technology to support core payroll functions. Here are some benefits that SaaS HR offers businesses.

Cost optimisation

One of the biggest advantages of utilising a SaaS HR system is the reduced administration time and costs. Given that SaaS leverages cloud-based software, it means shifting out physical components of the organisation’s existing payroll IT infrastructure and processes into a virtual network of servers based globally and can easily be accessed through the internet. This eliminates the need for organisations to invest in expensive hardware and software, given that the SaaS provider deals with the infrastructure and management.

Similarly, when purchasing a HR software, it is almost always on a licensing model – which means that organisations typically are required to pay a hefty upfront cost for that annual licence fee. SaaS HR providers, on the other hand, reduce the initial upfront expenses by charging on a subscription basis. This enables organisations to spread their costs monthly or annual as well as scale up and down as needed, as only pay for what is used.


SaaS HR is highly scalable, which offers organisations the flexibility to enhance the HR system based on demand – whether it is adjusting the capacity to accommodate an increase in headcount or onboarding remote working employees. With traditional HR systems, scaling up or down is often a herculean effort, as it involves revamping the entire HR hardware and software as well as internal processes. SaaS HR model allows organisations to scale up or down flexibility without having to invest in additional software, servers or infrastructure given that all information and data is hosted virtually on the cloud.


A huge benefit of utilising SaaS is the access to HR services and resources on almost any device, anywhere – as long as the user is connected to the internet. Unlike traditional HR systems, where employees have to be physically present in the office to access HR resources, SaaS ensures instant availability to services and information anytime. This could potentially be a huge boost to productivity and efficiency levels. Imagine the HR Manager being able to approve payroll reports or Line Managers accessing and approving their employees’ leave records on the go without having to be physically present. SaaS HR is also a great option for organisations with a remote workforce, as employees working across various geographic or while on the road can still access HR services and resources without having to constantly go through the HR team. This improves connectivity and communication levels amongst colleagues regardless of where the organisation’s workforce is based.


SaaS HR is highly customisable, which frees up HR’s time in terms of administrative work and data management to focus on strategic initiatives. For instance, HR can decide on the type of payroll or data management reports that need to be presented to their stakeholders, or perhaps support certain compliance regulations that are unique to a specific industry. Customisable features also save the HR team a lot of time and resources as it ensures a HR system that is able to address and support the needs of each individual organisation.

By transitioning to a SaaS HR model, organisations can significantly benefit from reduced costs, greater agility and improved communication across the organisation. The best part is that organisations can scale accordingly without having to worry about the technical requirements. There are, of course, multiple considerations when deciding on a right SaaS HR platform for the organisation. Ultimately, it depends on the needs and purchasing power of the organisation. And it is always best to conduct in-depth research, seek reviews and even negotiate on the terms and conditions before committing to one.


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