What is SAAS HR Software?

What is SAAS HR Software?

5 December 2023

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Although it’s often seen as a back-office function, HR is pivotal to the success of a company and using technology helps to streamline and make the work of HR more efficient and effective. Many businesses are now implementing what is known as Software As A Service (SAAS) HR to support their HR team and the wider business.

But what exactly is SAAS HR software and how does it operate? In this blog, we explore everything there is to know about SAAS HR software including the key features and benefits of it and the core functions you can expect.

What is SAAS HR software?

SAAS HR software is a web based HR management system that is hosted in the cloud. As it’s accessed via a web browser, this means it isn’t installed on specific machines or devices. Having a cloud-based approach allows businesses to benefit from a powerful HR tool without having to invest additional resources in specific IT hardware.

What are the key features of SAAS HR software?

If you’re thinking about implementing SAAS HR software in your business, here are some key features you can expect.


SAAS HR software can be accessed from any location, at any time – as long as the device being used has an internet connection. This flexibility is particularly beneficial for remote workers and for those who work from home. According to data from StandOut CV, 44% of UK workers work from home for at least some of the time, so having this kind of software is critical for these employees.


As your business grows, so will your headcount and therefore your HR needs will also evolve. The beauty of SAAS HR software is that it can scale up, and if needed down, with your business. You have the ability to easily add or remove features and users to meet your business demands appropriately.

Automatic updates

One of the significant advantages of SAAS HR software is that updates and upgrades are managed by the software provider. This means that businesses always have access to the latest features, security enhancements, and compliance updates without having to manually install patches or new versions. This takes away any need for system downtime and in-house software expertise.


SAAS HR software is generally more cost-effective than traditional software licences as most companies base their costs on the number of users. In many cases, there are no annual fees and no large up-front costs to eat into budgets, making it a particularly good option for small SAAS businesses.

Integration capabilities

Modern SAAS HR solutions often come with robust integration capabilities, allowing them to seamlessly connect with other business systems such as payroll, finance, and work productivity tools. This ensures that data flows smoothly across different functions, enhancing overall efficiency as this data can readily be reported on to identify areas of success and conversely areas of concern.

What are the core functions of SAAS HR software?

SAAS HR software delivers a wide range of functions designed to streamline HR processes and improve the overall employee experience. Although different software will have different features there are some core functions across the majority of software on the market which includes:

Employee onboarding and offboarding

SAAS HR software simplifies the onboarding process by automating the entire process which commonly involve large amounts of paperwork. Similarly, it streamlines offboarding procedures, ensuring that departing employees leave the business smoothly.

Holiday and absence recording & reporting

Your annual leave request process is fully automated and it maintains a live record of annual leave taken and available through self-service. It also records staff absence data and facilitates clear reporting to identify and manage any concerns.


Recruitment processes can also be streamlined as SAAS HR software can automate job postings, applicant tracking, and candidate assessments, making recruiting new staff members a doddle.

Document management

You’ll have the ability to maintain accurate staff records including compliance as you can store evidence of right-to-work checks and other document management throughout the employee lifecycle. It can also hold repositories of key policies and forms so they are available as required in a few clicks.

What are the benefits of SAAS HR software?

The adoption of SAAS HR software offers numerous benefits that can significantly impact an organisation’s HR operations and overall business performance including:

Enhanced efficiency

By automating repetitive tasks and centralising HR data, SAAS HR software reduces administrative burdens. This allows HR staff to be involved in more strategic work and gives managers and employees time to focus on what they do best rather than spending time on basic HR administration tasks and form filling.

Improved data security

HR SAAS software providers have to ensure that they have robust security measures in place to protect sensitive personal HR data in order to comply with data protection regulations. These measures include encryption, regular security audits, and compliance with stringent industry standards and benchmarks.

Better decision-making

Advanced HR analytics and reporting features provide valuable insights into workforce trends, performance metrics, and employee engagement. These insights enable data-driven decision-making and strategic planning.

Employee empowerment

Self-service portals empower employees to manage their own HR tasks, such as updating personal information, submitting annual leave requests, and accessing other relevant information. This improves employee satisfaction as the software enables them to do this at a time and location that is convenient for them. Additionally self-service also reduces the administrative workload on HR staff.

Speak to us today to learn more

SAAS HR software is helping to shape the way that many businesses manage their human resources. Its cloud-based approach, combined with a wide range of features and benefits, means that it an ideal solution for organisations looking to enhance their HR operations. By implementing SAAS HR software, companies can achieve greater efficiency, improved compliance, and a more engaged and empowered workforce.

If you’d like to learn more about SAAS HR software, contact our friendly experts today. Why not take a look at our HR software by signing up to our FREE 30 day trial today!

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