Building HR SaaS: Tips, Benefits, Features

by Alex Mansour

8 months ago · 6 min read

Human resources operations have become much different than before. Instead of doing repetitive tasks of hiring employees and paying salaries in cash, the profession and the department has become more complicated with strategic goals that need to be achieved. 


The outcomes of the HR department are now very impactful, as the performance of employees and the level of outstanding talents a company hires can rely on this department. 

To withstand the more complicated workflows and processes inside HR departments, digital platforms and workflow automation tools have proven to be useful more lately, with more new businesses using HR platforms and digital tools every new year. 

In this blog, we are sharing everything you need to know about HR platforms and the automation of HR workflows. 

What is an HR System? 

An HR system or platform is one that helps human resources employees manage their tasks more efficiently through a dedicated software solution. 

This can help HR departments rely less on paperwork, reduce errors, ditch the usage of spreadsheets and manual data entry and have access to tools that help them choose better and more suitable talents for every position. 

HR platforms are now very widely adopted, with nearly most of the businesses in some countries using such tools. According to a survey by Gartner, 85% of surveyed businesses were using HR software. The surveyed businesses were in different countries. 

HR systems can be bought as a one-time purchase or as a SaaS with a subscription. Depending on your needs, you can choose which of them can suit your business. 

The benefits of using HR software solutions

Ditching paperwork entirely

If you can entirely ditch paperwork for any department, you are more likely to make it more efficient, productive and less error prone. This is typically the same with your HR department. 

HR software can help in making all of the processes related to hiring, assessing employees and everything else all go through digital workflows without paper. 

This will unlock additional benefits like enhanced collaboration inside the department and having easier access to records at any time. 

Saving costs

Like other automation software solutions, HR software can help in reducing the costs of your HR department, whether ones due to errors, high employee turnover or hiring more human resources employees to withstand the volume of manual tasks needed with paperwork. 

This can make HR software a great investment for any business. As the money invested in buying or development comes back through the benefits which are reaped for long. 

To avoid wasting money on your HR software, those are the biggest mistakes businesses make with their HR software

Making better decisions and choosing better talents 

HR platforms give you more insights about your existing employees that make it easier to assess them and make better decisions when it comes to employees. 

They can also help in choosing better talents with tools that enhance your job postings and utilize AI to filter talents deeply to make your department focus on the best talents. 

Enhancing employee engagement and experience 

Using an HR software can help you shape up the culture of your business in the positive way you want. More transparent and consistent assessment and feedback sharing is a great way to boost the engagement of your employees and make them more motivated. 

Employee experience can also be enhanced with better and more organized onboarding, requests to days off, paychecks and more. 

Key features you need in an HR software

There are many features that can be included in an HR software, and it can be overwhelming to select the priorities. We have gathered here a list of the most essential features that we believe you just have in your HR management software. 

Recruitment and hiring tools

Recruitment tools are essential for any HR system. The module that does so is known as an Applicant Tracking System (ATS). It helps in filtering applicants accurately based on criteria that you choose..

Such filtration can save much time and help you hire better talents as your HR employees won’t spend a long time filtering hundreds or thousands of resumes manually. 

Employee portal

The employee portal is where any employee can access related information to them, including: 

With each employee being able to access such information, they can be much more satisfied and focused on their work. 

Payroll management 

A great HR software should include features to automate payrolls, by calculating monthly salaries with overtime, incentives and bonuses and processing them automatically, while informing each employee. This can help in delivering a better experience for each of your employees. 

Time and attendance tracking

Time and attendance tracking can be some of the most exhausting HR processes. You can overhaul time tracking with one simple module in your HR system that automates working hour tracking on the laptop of each of your employees. 

time and attendance

Attendance tracking can also become instantly smarter with features that can track attendance using the location services on the employee smartphone. Or by being connected to the biometric device used in the office. 

Analytics and reports 

Reporting and analytics features can vary from one system to another. Also, you need to be careful while choosing the best possible analytics and reporting features in your HR software. For example, you need analytics on employee satisfaction and retention, performance analytics that align with your goals, and include your own KPIs.

Training management 

Training should be among your priorities when it comes to HR in general. Also, the HR system can help you manage training to make it more organized. The training features can allow you to assign programs to specific employees, track their progress, reward them and more. 

Document management and collaboration 

Document management and collaboration features are essential for any HR software. As they allow employees in your HR department to collaborate on documents (like policy or onboarding ones. Then, keep them updated, and share them with other employees, all securely within the system.

Onboarding features 

Onboarding your employees properly and using the aid of a digital workflow can help your business give them a great first impression. The onboarding workflows managed through the digital platform can include sharing policies, signing contracts and other papers easily. 

Data security and access management

Like all software solutions, security must be a top priority when making a choice. A secure HR system will use authentication, encryption, role management and access management features. With high standards to keep your business files and employee data secure and far from leaks. 

How much does an HR system cost? 

Like other software solutions, there are no standard costs for developing or even buying a software solution. Any software company can price its solution (pre-developed or custom) differently. There are many factors in the process. 

Among these factors are the scale of your software and how many features to expect. Then, how efficient the software company is and more. You can read more about the factors that contribute to software development costs

We can give you a free quote for custom HR software development right away. 

Developing VS pre-developed HR management software 

When it comes to digital platforms, there is always a choice of getting a pre-developed solution or developing a custom solution. 

For custom solutions: they offer a great benefit of being built especially for your business needs, with features that are added in order to help any business in general. They can initially cost more than pre-developed solutions but provide higher value later. 

For pre-developed solutions: a pre-developed solution can be sold by any software company as a one-time solution for you to use for a lifetime at no additional costs. Such a solution will be typically developed for all companies and not for specific needs. 

A pre-developed solution can also be a SaaS, which is typically a web app that you can subscribe to and start using it immediately. 

The best choice for you can rely on what your business does, its size, and more factors. We can help you decide if you choose to get in touch

Final thoughts

HR software can help businesses with numerous benefits. As an investment, an HR system is a good one. As its benefits can come in the form of cost reductions, enhanced work culture and more. Additionally, it is important to choose the best HR software wisely, as the choices are many.

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