Everything You Need to Know About HR SaaS

Vladislav Gavriluk

Vladislav Gavriluk

CEO & Founder at Arounda

Businesses grow. So does the number of human resource department’s responsibilities. How to effectively scale the company and, at the same time, keep employees motivated? Embrace HR software as a service solution.

The SaaS market is developing rapidly. According to Statista, it will reach $208 billion in 2023. And such tools as HRMS, HRIS, and HCM will become integral to almost any growing company. For example, in 2019, more than 47% of large organizations worldwide used human resources management systems.

SaaS HR products can help automate many processes, freeing the hands of human resource specialists and allowing them to focus on core tasks. For example, HR experts can now swiftly handle data and payroll management, recruitment, training, and employee performance evaluation in the cloud software.

If you want to integrate a SaaS HRMproduct into your company’s processes, you have two options: use any available solution or develop a custom one. With our SaaS guide, you’ll learn more about this software, its features, and its main types. We’ll also tell you about the benefits of HR tech for businesses.

Arounda has profound experience in SaaS development, having already created over 20 such solutions. That is why we can share practical info, using our QTalent product as an example.


Looking for SaaS development services? Let`s have a talk.

What Is an HR SaaS Product?

HR SaaS are products that provide human resources specialists with various tools for managing employees, payroll processing, and other people-related procedures. SaaS is cloud software. That is, it can be accessed online, for example, through an Internet browser.

HR SaaS is an umbrella term that covers different tools and products associated with personnel management. The main examples of such products are:

  • A human resource management system (HRMS) is software that combines tools for recruiting, payroll, and personnel management, such as leave approval, attendance tracking, or promotion.

  • Human capital management (HCM) software offers similar functionality to HRMS. However, it is distinguished by a more strategic approach to personnel management.

  • A human resource information system (HRIS) is software that stores all employee data and provides tools for personnel management.

How Businesses Benefit from Digital Transformation in HR

Digital transformation is affecting more and more sectors, and HR is no exception. 

The PwC HR Tech Survey 2022 shows that moving human resources management to the cloud appeals to many companies. In particular, businesses that have already implemented such an initiative are satisfied with the following results:

  • 89% of respondents talk about better HR control.

  • 86% report increased productivity.

  • 84% indicate an increase in employee engagement.

  • 82% noticed a cost reduction.

As a result, applying SaaS best practices will bring you the following benefits:

Better Employee Management

SaaS HR allows you to track employee attendance and productivity, including overtime work. Human resource specialists can also conveniently calculate salaries thanks to one universal system.

Easier KPI Tracking

Since you manage all employee-related processes on one platform, you can easily monitor key performance indicators (KPIs). It can be tracking the goals achieved by each employee, his overall productivity at work, how long he has held a particular position, etc.

Human Error Minimization

SaaS HRM allows you to automate many company processes. There is no need to keep a bunch of documentation that can sometimes be confusing. HR software automatically calculates salaries and benefits, accepts requests for time off or vacations, and offers many other functions.

Expenses Reduction

Cloud HR SaaS is cost-effective compared to on-premises software apps. Additionally, using such products enables HR specialists to work more productively. As a result, you don’t need to create a huge HR department to manage people-related tasks.

What Are the Main Functions of HR SaaS Product?

Whether you choose an available HR software for your business or are engaged in SaaS product design and development, you should know the main functions of such a product. Take a look at them:

  • Convenient and secure employee records management

  • Employee working hours and attendance tracking 

  • Vacations, time-offs, and sick leaves management

  • Payroll and benefits processing

  • Overall employee productivity tracking

  • Employee engagement monitoring

  • Employee tasks planning and goal setting

  • Recruiting and onboarding processes management

  • Converting paperwork into digital format

  • Company performance analysis and relevant reports creation

Every business has individual needs when it comes to personnel management. Therefore, it’s not always necessary to follow the latest SaaS trends to increase the company’s productivity. Our tips include analyzing business requirements thoroughly and choosing or developing HR software according to them.

Most Common HR SaaS Tools

Implementing the functions we mentioned above takes place thanks to certain tools offered by SaaS HR. Let’s look at them in more detail:

Applicant Tracking System

An applicant tracking system or ATS is a tool for recruiting new employees. It allows you to track candidates, create job vacancies, distribute them, and review potential employee applications.


HR products also offer onboarding tools. They enable your new employees to integrate more easily into the team and stay with you as long as possible.

Employee Database

Another tool for effective personnel management is the employee database. It contains information about each employee: their name, address, phone number, education, and previous work experience.

Document Signing and Storage

HR requires a lot of paperwork. But with SaaS, you can easily digitize documentation and store it in the cloud environment. You can also organize all documents by category and sign them online using a digital signature.

Payroll Management

Human resources SaaS provides such a valuable tool as payroll management. Thanks to it, you can simplify and automate the process of paying salaries, eliminating the impact of human error. The system will calculate independently and accurately, and each employee will receive a fair wage.

Benefits Administration

This tool is similar to payroll management. Thanks to it, every employee can register for the necessary benefit program and receive the corresponding payments or services. In addition, the entire benefit accrual process is automatic and accurate.

Training Monitoring

Your HR system can also help track employee training. With this tool, you know about the training progress of each staff member, the chosen training program, and his successes.

Time-Off Monitoring

HR software also offers a tool for monitoring time-offs. With it, human resource specialists know about the permissible number of time-offs for each employee and, based on this, approve or reject time-off requests.

Performance Management

A performance management tool will help improve business efficiency. It allows you to set goals for individual employees or entire departments and monitor their achievements.

Arounda’s Experience with SaaS Products

Our team has significant experience in the software as a service sector. For over five years on the market, we managed to work with more than 20 SaaS projects. We apply user-centered SaaS design principles and exclusively advanced development technologies in our processes.

Our profound expertise enables us to handle full-cycle SaaS product design and development. Thus, we can create such software from scratch or improve your existing product.

Our services in particular include:

  • SaaS UX design. Our specialists know everything about the SaaS UX process: from user flow research to coming up with convenient navigation.

  • SaaS UI design. Every SaaS product designer in our team can create an intuitive, user-friendly interface.

  • SaaS development. Our skilled engineers can easily handle the front and backend of your HR platform.

Look at one of our most recent projects to discover our cutting-edge skills.

QTalent is a SaaS-based recruiting and sourcing platform that hosts the largest community of professionals in the food and beverage industries. Our experts created the UX/UI design of this platform. Here’s how it happened: 

  • We studied the business goals, target audience, and competitors.

  • Next, our designers conducted UX research and proposed the platform’s structure.

  • After that, our experts created a convenient user interface.

You may check out our portfolio if interested in our SaaS work.

Final Thoughts

SaaS HR products form a new reality for businesses in various industries. Such platforms will be useful for companies of different sizes, from startups to large organizations. Thanks to HRMS, businesses can increase their productivity, automate the processes of personnel management and payroll administration, and at the same time reduce their expenses.

We hope our ultimate guide on SaaS HR has helped you better understand such products. Now you know the main functions and tools that will make human resources processes in your company smoother.

If you are looking for SaaS development services for your business, our team can help. Arounda is a true expert in this niche. We have already created more than 20 SaaS products and are ready to work in the HR field. Thus, if you are interested in our offer, feel free to contact our team.

Vladislav Gavriluk
Vladislav Gavriluk
CEO & Founder at Arounda
I make sure our clients get the high-quality result from the beginning stage of the idea discovery & strategy to the final digital product.

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