An Information Services Group survey found that more than 70% of respondents have implemented, or are planning to implement, an HR Software-as-a-Service Platform within two years. So reports HR.BLR.
Companies with fewer than 10,000 employees are using SaaS models at a higher percentage than large companies, with 34% of medium-sized company respondents indicating they are using SaaS models, compared to 17% of large businesses. Larger businesses were found to use hybrid-models likely due to already significant investments in existing HR management systems.
“The most prevalent reasons for moving to HR SaaS platforms, the survey found, are the desire to deliver an improved user experience similar to what employees expect as consumers, access to continuous innovation and best practices, and improved integration of data and applications,” according to the article.
However, one partner at ISG warned new technology alone cannot transform HR, but a well thought-out implementation and execution of the new system’s functions is needed to fully realize the benefits of the new platforms.