What Saas-based HR software market is and how it operates is secondary, as the understanding of this market, its revenue and future perspectives is of primary concern. To understand the basics of the Saas-Based HR software market, we must first understand the market size, measured by revenue, of the HR & Payroll Software industry, which is $9.9bn in 2021. The market size of the HR & Payroll Software industry is expected to increase by 5.3% in 2021.
Let us understand the Saas-Based HR Software Market. No doubt this market is evolving as it involves human resource software operated on the cloud computing environment. Saas based HCM applications manage all the day to day operations of the HR Department. Hence, making it more workable.
When entering into the market it is essential to understand the basics of the employee market and its workings.
Benefits of HCM
To point out one benefit of HCM is difficult as there are numerous of them:
- Controlling and managing all aspects of the HR Department – When the HR department is using a unified HCM solution then controlling and managing all aspects of the HR department becomes easy to verify and deliver. This a common and basic function which every employee must be at ease with.
- Tracking and processing the various activities such as attendance management, payroll management and leave management – All the integral day-to-day tasks of an HR can be managed through a unified portal. Here, HR can create dynamic and custom workflows for all processes. Payroll processing and payslip generation also become easier.
- Effective supervision and control of employee information on a real-time basis – With the use of HCM solutions, organizations (read HR) are able to effectively supervise and control employee information on a real-time basis. The access control levels of these can also be decided depending on the type of workflow and the purpose it serves.
When we speak about the Saas based HCM, it is not only about the basic functionalities, also involves personalized management and adding integrated value-added functionalities. It includes analysis of the various compliances, process design control, and workforce analytics. Various compliance includes the legal framework of the organization that should adhere to while dealing with the employees.
These approaches are further enhanced by the Saas based personalized HCM.
HCM – Indispensable for startups survival
One of the main reasons for having HR Software in your startups is cost-effectiveness. Globally all the companies and startups are moving towards less costing solutions. Thus global Saas based software entities are mainly driven by providing an affordable and employee-centric system that will enhance productivity.
Moreover, if we minutely analyze the global market, it is moving to the era of workforce globalization that supplement the adoption of the Saas based HR tools. Thus growing demand for the employees and recruitment solutions and critical talent acquisition roles are leading to higher implementations of the Saas based HCM software. If we speak department wise, Saas software coordinates various functions like employee salary, employee, hikes, bonus management, recruiting, performance management and succession planning. Many companies and startups are opting for cloud computing software technology and Saas for HR is the key driver for HR growth.
Segregation of the Human Resource Management
Broadly speaking, we can segregate the Human Resource Management industry into two segments. One is the administration segment and the other is the talent acquisition segment. In the digital world, administration management is taken over by talent management and now the focus has shifted to the well-defined recruitment roles.
One of the recent trends in the market is BYOD (Bring your device), it means bringing your technology and using it officially rather than using the official devices. It will give access to the workplace confidential data and sensitive that is related to the company. In this policy, Saas Software plays an important role in tracking and keeping real-time information on the devices. It also includes the analysis data used by the employee on the personal device. However, the complexity of the software increases with the increased number of employees in the company thus involving more and more functionalities.
This potential problem is eased by cloud computing and its proliferation will open a new and novel market for human resource consulting. If we see, the North America market is anticipating a surgical growth in HR software solutions as the demand in the service sector is continuously increasing.
With the global prospects, Human Resource Technology has a long way to go in the service industry and heavy industrialization in the future.