SaaS-based HR products enable HR leaders to deliver greater value by improving user experience, increasing workforce competitiveness and controlling labor costs. In an email interaction with Karma Negi of The Red Mark, Sumit Sabharwal, MD (India & SAARC), Excelity Global, talks about the importance of SaaS-based HR products for organizations today.
How is HR accelerating the adoption of cloud and SaaS-based HR products?
Technology today is truly helping organizations to deliver better workforce utilization and at the same time reduces HR administrative costs. The HR Technology model landscape has expanded in recent years on the back of a range of new service models, including HR analytics and cloud-based offerings such as Software-as-a-Service. SaaS-based HR products have always been invaluable to organizations in enabling their HR leaders to deliver greater value by increasing workforce competitiveness and controlling labor costs. The influence of cloud-based applications has been particularly evident with personnel data, compliance data etc. is stored and organized on the cloud, available just a click away hence, greatly reducing the need for physical storage and IT support.
Has SaaS-based HR products taken off in India?
Earlier, the meaning of digital was e-commerce. But the landscape has changed rapidly in the past five years—the rise of big data, cloud computing, social media and smart devices has opened avenues to access the data more frequently from anywhere and at any time. At the same time employees are also expecting greater access to their information and flexibility.
Today, cloud technologies and especially SaaS delivery model have brought innovation, flexibility, and cost-effectiveness that makes the emerging strategic role for HR function possible.
Organisations are exploring means to leverage the information about their workforce on social media. This will enable social recruitment and increases employee engagement which will facilitate collaboration and increases knowledge sharing among employees.
In a market with demand fulfillment largely led by the US, India’s competitive advantages will help Indian SaaS companies see strong growth and create $50 billion in value over the next 10 years, according to a study.
Some facts about Cloud HR
- 42% firms will replace their existing HR system with a Cloud based solution
- 63% firm expect improved value add from Smart HR systems to their Businesses
- Currently, only 24% of cloud HR customers can provide promised value
What are the features that clients look for in an HR solution?
Flexibility, innovation, user experience, integration, functional coverage, rapid deployment, and cost reduction are the key drivers’ clients look for in an HR solution.
In view of the rising demand for SaaS-based HR products, how big is the demand from SMBs?
The increased competitive market scenario has prompted the SMEs to invest in this business software and adopt the go-to-market strategies, to make effective decisions for their business growth. More than larger enterprises, SMEs face a resource crunch and require better methods to solve the complexities for better cost optimization on their assets and requirements.
Benefits of SaaS adoption in HR
- Reduce total cost of ownership
- Reduce dependency on IT
- Improve the employee user experience- One of the major benefits that SaaS solutions has over traditional on-site solutions is that it is extremely over-friendly
- Speed to implement and achieve value
- Enable globalization
- Access to ongoing innovation- SaaS providers are proposing frequent updates including new features, mainly related to changes in regulation or new functionalities, addressing emerging HR and employees’ requirements
- Avoid administrative burden
- Establish a variable and predictable cost structure
Customers are facing serious challenges when choosing a right solution that will meet their needs and maximize benefits with fewer security and integration risks.
According to reports, global SaaS products will see hyper-growth and adoption by SMBs. They will contribute to more than 75 per cent of the public cloud revenues driving the global SaaS industry to $132 billion revenues by 2020, of which SMB SaaS is expected to reach $76 billion.
What are your offerings for SMEs? How do they ease SMEs need and requirements?
Our EZPayroll will provide cloud-based easy to use, workforce management solutions and employee self-service benefits such as meal vouchers and medical reimbursements that will allow businesses to save time, money and gain control of their workforce by ensuring all areas of their staff administration is fully streamlined for efficiency and effectiveness. It is available at INR 9.99 per employee per month with no minimum billing commitment.
Our EZPayroll is first launched in India, and over the next quarter will become available across Asia Pacific. Typically, such products and services have been available to large enterprises. With the launch of EZPayroll, we are bringing the benefits of professional HR management to small and medium enterprises that will allow them to scale with their employees, efficiently, seamlessly and cost effectively.