SaaS HR: What Features and Benefits To Look For in 2024

Explore the world of SaaS HR software, a cloud-based software that manages and streamlines HR tasks and drives the growth of your business efficiently.

Hiring and Growth

Ever felt like you're juggling too many responsibilities as a business owner?

We understand that. Which is why, we're here to tell you all about SaaS HR software and how it can help you scale your business.

A SaaS (software as a service) HR software manages your challenging HR tasks so you can focus on more important business aspects. 

This article explores the ins and outs of SaaS HR software, which can make life easier for businesses of all sizes. 

So, begin!

Key Takeaways

  • Learn what a SaaS HR system is and how it can help your business.
  • Top 4 benefits of using HR SaaS solutions.
  • Selecting the best HR SaaS solutions for your business.
  • Discover 8 key features to look for in a cloud HR system.

What is a SaaS HR System?

A SaaS HR system is a cloud-based program that manages an organisation's HR requirements. From hiring and onboarding new employees to managing the payroll of current ones, a SaaS HR system can help it all stay organised.

With time, your team may grow from a few people to tens and hundreds and these responsibilities can't be overlooked.

An intuitive program to securely organise the data and manage payroll HR tasks becomes necessary.

Why Is It Important for SaaS Businesses?

So, why is an HR system so important for a SaaS business? More importantly, is it necessary? 

Well, here are the most important reasons to invest in a good SaaS HR software:

Boost Productivity

Think about all the hours you spend manually handling various HR processes, such as organising employee information, welcoming new team members, and processing payroll. Not to mention the headaches caused by human error and the subsequent corrections needed.

It's enough to make anyone feel overwhelmed.

HR teams can feel confident using streamlined solutions to free up valuable time and energy, empowering them to concentrate on more impactful tasks.

Unlock Growth Potential

While your business may be small today, planning for future growth and expansion is essential. As your business evolves, so will your workforce, presenting new challenges and opportunities for HR teams.

This is where a SaaS HR system offers supporting scalability, seamlessly adapting to accommodate your evolving needs. Whether adding one new team member or scaling up to hire hundreds, the software can effortlessly manage the recruitment and onboarding process.

This scalability ensures that your HR team and operations remain agile and efficient, regardless of your company's size or stage of growth. 

Ensure Compliance 

As HR professionals, following regulations is part of the job. From labour laws to understanding severance pay, these laws can be complex.

With the proper saas software, you can rest with the knowledge that you're on top of all these requirements, all thanks to the updated rules to ensure compliance. 

These programs keep you up to date on tax withholding and labour laws. This ensures that you avoid any costly fines and penalties.

Enhance Employee Engagement and Satisfaction

Leveraging a SaaS and HR management system can significantly improve employee experience and foster a company culture full of engagement and motivation among your team members.

But how does it achieve this?

Modern SaaS HR software has advanced features, including robust employee performance and applicant tracking systems, management tools and interactive employee feedback systems.

These tools empower you to closely monitor and evaluate your employees' performance and satisfaction levels, providing valuable insights into their organisational experiences.

Seeing a trend in unused vacation days? With these systems you can proactively avoid the end of the year vacation rush.

By leveraging these feedback systems, you can pinpoint areas for improvement and reduce stress at work, helping team members feel valued and appreciated.

Make Data-driven Decisions

Many companies rely on data, and HR SaaS solutions give you vital insights into your personnel. 

The software provides access to staff performance metrics and attendance records (to name a few), that you can use to make smart business decisions.

Plus, security in HR SaaS software ensures that the documents are organised and inaccessible to anyone outside the firm. 

4 Benefits of SaaS HR Software for Small Businesses

SaaS HR software can offer several benefits to organisations of various sizes and environments. Let’s take a closer look.

1. Promotes Cost-Efficiency

SaaS HR solutions offer small businesses a cost-effective alternative to traditional on-premises software. Gone are the days where an organisation needed to set up a server room to run a company.

With SaaS, small businesses can access advanced HR functionalities without significant upfront investments in hardware or software licences.

Instead, they pay a subscription fee, typically monthly or annual, which often includes updates, maintenance, and customer support. This predictable pricing model allows small businesses to manage their budgets and allocate resources more efficiently.

2. Offers Scalability

One of the greatest benefits of HR software is in the talent management department. Being highly scalable means, it is well-suited for businesses experiencing growth or fluctuations in workforce size.

Most services allow upgrading and downgrading through their pricing tiers to match your current business needs.

As the business expands, the software can easily accommodate additional users and functionalities without requiring extensive IT infrastructure upgrades or customizations.

Whether hiring new employees, expanding into new markets, or introducing new HR processes, small businesses can scale their infrastructure accordingly, ensuring continued support for their evolving needs.

3. Gives Accessibility and Flexibility

SaaS HR software offers accessibility and flexibility, allowing small business owners and employees to access HR tools and data from anywhere with an internet connection.

This flexibility is particularly beneficial for small businesses with remote or distributed workforces, as it enables seamless collaboration and communication across different locations and time zones.

Additionally, many SaaS HR solutions offer mobile apps or browser-based interfaces, further enhancing accessibility for users on the go.

4. Streamlines Operations

SaaS HR software streamlines operations and improves efficiency for small businesses by centralising HR functions in a single, integrated platform.

From recruitment to onboarding to payroll processing and performance management, all HR tasks can be managed within the same system, reducing the need for manual data entry, duplicate records, and disparate software solutions.

This integrated approach saves time, reduces the administrative burden for human resource management and enhances data accuracy and consistency across HR teams.

How to Choose the Right HR SaaS Provider for Your Business?

1. Know Your Needs

Ask yourself, What am I looking for? Take some time to work with the leaders of your organisation.

Are you seeking a solution to manage payroll, personnel data, an applicant tracking system, systems, or performance reviews? Knowing your requirements upfront will help you narrow down your choices.

2. Assess Financial Viability

When evaluating HR SaaS options, it's important to comprehensively assess your business's financial health. Beyond initial costs, factor in recurring subscription fees and any additional expenses. Strive to strike a balance between affordability and meeting your business requirements effectively.

By carefully considering your budget, you can ensure sustainable investment in SaaS solutions that align with your long-term financial objectives and business goals.

3. Thorough Research is Key

With countless services vying for your attention online, it's crucial not to be swayed by flashy promises and eye-catching visuals alone. Take the time to investigate and compare your options.

Explore their websites thoroughly, scrutinise user reviews, and seek recommendations from trusted peers in your industry. Prioritising due diligence over haste ensures informed decision-making and safeguards your business from pitfalls. Remember, a cautious approach today can save you from regret tomorrow.

4. Prioritise User-Friendly Interfaces

Ease of use is paramount when selecting SaaS HR software. Opt for platforms with intuitive interfaces that minimise the learning curve for your team.

We recommend also bringing other business unit leaders to the demos that you are assessing so they can give their feedback on how easy it may be to use their interface.

Remember, you want software that empowers employees to navigate effortlessly rather than leaving them frustrated.

5. Verify Quality Customer Support

Reliable customer support is indispensable in the ever-evolving landscape of SaaS HR. Ensure your provider offers robust assistance channels, including phone, email, or live chat, to promptly address any queries or concerns.

Knowing that dependable support is readily available provides peace of mind. It assures you that assistance will be at hand should any issues arise and enables you to navigate challenges confidently.

6. Evaluate Integration Capabilities

When selecting a SaaS cloud-based HR software, consider its compatibility with your existing software ecosystem. Opt for a solution that seamlessly integrates with your current tools and platforms. This ensures smooth data flow and eliminates manual data entry or switching between multiple systems.

Choosing software with robust integration options can streamline workflows, enhance efficiency, and future-proof your operations against potential compatibility issues.

7. Request a Demo

We're strong advocates of seeing is believing.

Before committing to SaaS HR software, it is essential to see it in action. Request a demo from the provider to gain insight into its functionality and usability.

Pay close attention to how intuitive the software is and whether it aligns with your requirements. Before viewing the demo, list out all of the current must have features and challenges with your existing systems. Ask the sales reps, how their system handles your current challenges.

A demo allows you to evaluate the software's features and assess its suitability for your business needs, empowering you to make an informed decision and ensure a seamless transition to your new HR solution.

8. Plan for the Future

Selecting an HR SaaS provider is a significant decision with long-term implications. It's crucial to adopt a forward-thinking approach and consider your company's future trajectory.

Anticipate how your business may evolve and expand over time, and choose a provider capable of adapting to those changes seamlessly (asking about scalability at the demo would be helpful). Look for a vendor with a proven innovation and scalability track record, ensuring that their solution can accommodate your growing needs and evolving requirements.

By thinking long-term and selecting a provider that aligns with your future ambitions, you can future-proof your HR infrastructure and lay the foundation for sustained success and growth.

8 Features to Look for in a SaaS HR System or Service

Now that you know how to choose the right HR software system, here are the top 8 features you should be looking for:

1. Employee Data Management

Consider this your HR hub, where you may organise personnel information. 

You want a system that allows you to store and update personal information, contact information, career history, and performance evaluations. Having everything in one location makes life much easier.

2. Payroll Process

Payroll can be complex and full of pitfalls, especially with varying regulations.

Fortunately, a SaaS HR system relieves this burden by calculating earnings, deducting taxes, and setting up direct transfers. The less time you spend on payroll, the more time you can devote to building your business.

3. Recruitment and Onboarding Tools

When bringing recruits on board, you want the process to be smooth and efficient. With proper systems, your HR department can post job listings, track applicants, schedule interviews, and quickly get new hires up to speed. 

4. Employee Self-Service Portals

Give your staff the ability to handle their information. They can use self-service portals to update personal information, request time off, examine pay stubs, and do other tasks without contacting HR. It benefits everyone in your team. 

5. Benefits Administration

HR responsibilities don't begin or end with hiring, onboarding, or payroll. It's important to keep track of your employees' benefits. 

A SaaS HR system that can help you enrol employees in health plans, retirement accounts, and other benefits programs can make life relatively easy. 

6. Compliance and Legal Support

With all the legal requirements and regulations, ensuring your business stays on top of everything can be challenging. Therefore, a powerful SaaS HR solution can effectively track critical papers, assist you in developing policies, and provide audit trails for further peace of mind.

7. Reporting and Analysis

Knowledge is power, especially in the SaaS corporate world. 

A SaaS HR program, fully equipped with your team's information, such as turnover rates, training needs, and performance trends, can help you and your team make informed business decisions. 

8. Mobile Accessibility

Responsive SaaS HR is a must-have in the contemporary digital age. 

Imagine keeping up with all your HR responsibilities on the go, anywhere in the world, without geographical restrictions on data access. It's only possible with a SaaS HR program with mobile accessibility.

Not all HR solutions are going to have every single feature. Some may have strengths in certain features which brings us back to assessing the business needs first when picking the right service for your organisation.


Investing in a SaaS HR system is more than just a smart move. 

It's an essential part of the growth and success of your business this year. With the right features and benefits, you can streamline HR processes, enhance employee satisfaction, ensure compliance, and make informed decisions that drive your business forward. 

Looking for a powerful human resource management system? 

Knit People is one of the top HR SaaS Providers in Canada. Our global payroll system has smart functionalities that enable you to carry out all HR tasks easily. 

The best part? You can start with a free trial today!