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7 Top SaaS Trends Affecting Human Resources

by Arthur Zuckerman

Human resources have a significant role in determining how successful an organization is. Processes involved in HR range from simple to time-consuming and complex. 

To keep up with the ever-changing job industry landscape, organizations have been looking to streamline HR operations to take the load off of administrative burdens.

The rise of SaaS continues to push the transformation, particularly in recent years when so many people started working from home. 

From eliminating redundant manual tasks to providing real-time insights, software as a service is expected to have an even greater impact in the future for human resources.

Having said all that, SaaS itself isn’t static. Trends emerge, causing changes in how organizations approach them. HR is no exception.

Let’s take a look at some of the most prominent SaaS trends that affect human resources and how enterprises should deal with these trends.

1. Cloud Technology

Before the days of cloud computing, data collection and storage were significant challenges. Keeping records directly on a computer, for instance, is hardly a secure option. Paper documents are also an outdated concept.

Thanks to cloud storage, organizations have an easier time utilizing pertinent information, including human resources, via the cloud.

According to O’Reilly, more than 90% of all organizations rely on the cloud, and the trend is unlikely to slow down.

One thing to note, however, is that there are different cloud solutions. Before committing to one, an enterprise ought to determine whether it solves potential problems related not just to HR but other aspects of the organization.

2. Enhanced Data Security

Software as a service excels in data security. HR has to keep vast amounts of sensitive and personal information. 

The demand for data security grows in the age of cyber incidents running rampant. As mentioned before, the cloud is a secure option for data storage needs, but data security goes beyond that.

For one, dedicated SaaS HR tools come with built-in security features. That is if your software supplier choice is reliable and capable of ensuring that.

One assurance in the context of enhanced data security is the fact that software developers have to adhere to various regulations. Failing to comply with the legal requirements puts software out of contention, which is a win for HR professionals concerned about data privacy and security.

Finally, it’s worth noting that companies plan to restructure their security strategy to fend off ever-growing cybersecurity threats. Gartner projects that roughly three out of four organizations have restructured or plan to work on restructuring soon. 

3. Mobile SaaS

The hybrid work model is one of the biggest catalysts behind mobile solutions becoming a preferred option for employees worldwide.

Mobile SaaS isn’t surprising when you consider that roughly all of the internet traffic comes from smartphones and tablets.

For employees who work remotely, checking things up on their smartphones is convenient. In fact, even if you don’t work remotely, mobile on-demand SaaS comes in handy, letting you check stuff up quickly without having to go to a computer.

Solutions to access remote desktop for Mac, for example, might seem like a decent alternative, but it doesn’t come close to having everything readily available on your smartphone or tablet.

Compared to non-mobile SaaS solutions, mobile software as a service still lacks complexity. Mobile apps hardly offer unique features. Rather, they function as an extension of software as a service or come with limitations due to lower processing power on a mobile.

Still, given how the dependence on mobile devices continues to expand, we can expect to see mobile software as a service solution to advance in the future.

4. Scalability for Expanding Businesses

A study by PWC reveals that deploying human resources management into SaaS gradually helps overcome disruptive technologies and other obstacles.

The option to scale for an expanding business is too valuable to pass up. The available on-demand usage basis enables organizations to remain competitive and not waste resources on redundant elements.

Take small startups, for instance. Instead of spending big money, they can choose a SaaS solution that still does what’s necessary for a couple of people working in HR. And once the organization starts expanding, it can do so hand-in-hand with the SaaS.

The trend to continue offering flexible feature selections and pricing models will remain. After all, SaaS solutions exist to accommodate both big and small organizations. Introducing a scalability model 

5. Regulatory and Compliance Requirements

Different countries have different regulatory requirements. The job industry is no different. Recruitment, employee benefits, and other regulated processes require a thorough understanding of the legislation.

SaaS developers have to comply with the regulations, but so do HR professionals. HIPAA and GDPR are two of the most notable regulations, but there’s a new player making rounds.

Artificial intelligence has many roles and uses, but it’s quite volatile, so adding dedicated regulations makes sense. 

Human resources use AI to process vast amounts of information to evaluate employees and new potential recruits. Another example is automating payroll processing.

The benefits are hard to overlook, but it’s imperative to implement company-wide standards and enforce them. Regulatory and compliance requirements are no joke, especially when it concerns HR, which has to worry about sensitive data and its security. 

6. Economic Factors

Economic factors have major significance in shaping opportunities and challenges for both human resources and SaaS developers.

When the economy is on the rise, HR has more opportunities to explore the latest SaaS solutions and see how much the premium features improve overall efficiency. In other words, spending extra money isn’t too big of a problem. 

In turn, economic upswings also mean that SaaS providers react and raise their prices, which is fair from their point of view.

Favorable market conditions open opportunities to gain and invest to improve the service further. Investors who see an opportunity to invest also provide extra funding.

That changes when the economy is in turmoil. Both sides suffer, and there’s no telling when the better times will come.

Taking all that into account, human resources should keep an eye on the economy and how it’s affecting the department, including SaaS solutions used to streamline operations.

7. Vertical and Micro SaaS

Vertical and micro SaaS solutions aim to solve specific problems that generic and bigger applications don’t cover.

Specific use cases limit what software is capable of achieving, but it’s not a problem in a large SaaS market with so much competition. 

Some industries are relatively young, which creates a perfect opportunity for smaller developers to come up with niche solutions.

In the context of human resources, one example of a micro SaaS solution could be tools that predict potential employee churn data. Such software utilizes machine learning to create algorithms and project data for HR.

Another instance of micro SaaS is implementing gamification for specific company types and using it as a means to fend off work stress.


To sum everything up, there are a fair few SaaS trends that affect human resources. Since software as a service has a significant grip on the work market, it’s of the utmost importance to keep up with the latest changes and advancements to adapt. 

Failing to incorporate the changes jeopardizes human resources in a way that leaves the department feeling a bit outdated.

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