Software as a Service (SaaS) for Human Resources

 

Software as a Service (SaaS) for

Human Resources

 

 

More and more often we hear about the term Software as a Service, but do we really know what it is? Human Resources departments must know the pros and cons of this type of HRMS software implementation and if it is the most appropriate for their company reality. In the next few paragraphs we will try to explain which the ideal client for this implementation model is, from our experience.

Software as a Service (SaaS) is an implementation model in which the provider makes all the necessary services available to the client before, during and after the implementation, by charging a periodic fee. This includes the hardware (servers), its maintenance and the support service for any incident that may arise once the software is implemented.

But, what differentiates this type of implantation from other models? The answer is simple: immediacy, lower costs and greater functionality.

Immediacy: One of the great differentiators of this implementation model is that the functionality of the software must be standard, that is, the client cannot customize (yes configure) the functionality contained in the tool. This allows implantation times to be greatly shortened.

Lower costs: Unlike the license purchase model that most companies were used to in the past, we now start to pay for an “all-inclusive” service. This means that we are not tied to anyone and at any time we can choose a better provider for the same service.

Increased functionality: Every time a company implements HRMS software and customizes it excessively, it could think that it is gaining in functionality when the reality is the opposite. The more personalized the software, the more difficult it is to jump to new versions of it with additional functionality. For this, new adaptation costs would have to be incurred, which we do not want.

Once we have explained at a high level what the acronym SaaS means, two questions should come to mind:

1. Is my company ready to implement under the SaaS model?

The HRMS Software as a Service model is a statement of intent at the corporate level:

·         I don't want to have to deal with maintaining a room full of servers (at least one for every solution we use in the company).

 

·         I do not want to be tied to the expensive specialized personnel of the supplier on duty, who in the end become company personnel and push to go where the supplier says.

 

·         I have the ability to evolve towards new ways of doing things and I am not averse to change.

 

 

·         I want to reduce my fixed costs.

In the case of an implementation of HRMS Software, this declaration of intent mainly affects three actors, which must be aligned: Management, Human Resources and Systems.

2. What type of provider is the best suited to my characteristics?

Many would say: "whoever does what I want." In that case, the SaaS model is clearly contraindicated. Of course, the provider will try to give the best possible service, but adhering to some rules:

3. The solution does not allow customizations and configuration.

·         I may not have access to the servers with my information due to security policies of the hosting provider.

·         The hours for the maintenance of the solution will be the working hours, unless a specific 24x7 service is contracted, which is usually more expensive.

Assuming that we accept these premises, we will explain some tips when choosing a provider for a Talent Management solution:

·         Think carefully about where we are and where we want to go: On many occasions we choose specific suppliers for a single process (training, performance, compensation, etc.). When implementing new processes, it can happen that the tool we had chosen in the past is not worth it as it does not grow in functionality. The recommendation is to choose solutions that contain the maximum possible functionality (performance, training, compensation, career plans, selection, etc.) modularly separated in order to increase functionality, as our corporate processes expand.

 

·         The best is not always the best: Delve into the functionality of the solution thoroughly to confirm that its configuration allows us to adapt our processes to the solution. Let's not be fooled by just graphically spectacular solutions.

 

·         Experience is a degree: Suppliers with more years in the market tend to have more “proven” functionality since they include many of the best practices found worldwide in their products.

 

 

·         Who much covers little squeezes: Do not be aggressive and want to suddenly implement all the functionality that the product offers if we are not prepared. Choose reliable providers that help you with their experience in the best way to implement.

 

·         Ask others: Many times we forget that other companies have gone through the same process as us when deciding which solution to implement. It is advisable to ask the provider for references.

 

 

·         Experienced implementation team: There are providers that have just landed in the country and as they have local implementers, they do not yet have the necessary experience to carry out a successful implementation. Make sure the project team has proven experience in this type of implementation. If not, request other equipment from the manufacturer even if it is not local.

 

·         Global presence: Many of the implementations under this model involve multinational companies. Please confirm that the provider is present globally as in the future you may need them in other countries to, for example, train local users.