What is HR SaaS?

HR SaaS is human resource management software as a service (out-of-the-box human resource management software running on the cloud). As the name suggests, it is a set of personnel management applications that can assist the personnel department in handling daily affairs.

HR SaaS can improve the work efficiency of the personnel department, the enthusiasm of employees, and the rationality of performance appraisal, and provide the basis for the correct decision-making of the company’s management.

The importance of HR SaaS

As society increasingly emphasizes vertical segmentation, the concept of division of labor between enterprises has gradually become popular, leading to a significant increase in the demand for HR SaaS centered on cloud enterprise services.

In “The Wealth of Nations”, Adam Smith formally proposed the theory of division of labor. He believes that the division of labor can increase labor productivity, save time, and help promote the efficiency of creativity and tool improvement.

In response to the above reasons, under the temptation of saving manpower and maintenance costs every year, HR SaaS services have gradually become a trend.

For small and medium-sized enterprises, HR SaaS allows them to avoid the cost of building servers and network equipment, and other systems and maintenance, and at the same time quickly and efficiently build a full range of services including company information, employee files, scheduling management, approval process, payroll, and MPF, etc. As long as you are connected to the Internet, you can complete the internal management work of the enterprise with one click.

Many small and medium-sized enterprises have begun to understand and use cloud enterprise services, but there is huge potential for development in the long-tail market of SaaS services.

Based on the above reasons, HR SaaS may usher in an explosion this year and become the next field of unicorn explosion.

Benefits of HR SaaS

  • Strong business agility

HR SaaS software quickly makes changes to adapt to rapid policy changes. The “business agility” of SaaS creates huge value in a changing business environment.

  • Lower cost

Since SaaS-based HR software offers a friendly subscription model. Best of all, there’s no need to invest in expensive hardware, software, or other setup peripherals. And, keep the system running seamlessly without hiring additional IT staff.

  • Enhanced security

HR SaaS software solutions provide a high level of security. They ensure user-level access to confidential employee data and other files. Role-based access can be set up for increased data security. Only authorized personnel will be able to view and edit data using credentials. Data encryption technology prevents hacking.

  • Expandability of seamless upgrade

If it is a PaaS-based HR SaaS software, you can quickly expand your application, or even customize a brand new application. Compared with the installed software, the development speed of the new generation aPaaS platform can be increased by 3 times.

  • Integration just got easier

SaaS software is hosted on the cloud, and integration is very convenient and easy. Therefore, at the beginning of design, HRSaaS software makes integration into a capability, which is called an integration platform.

  • Upgrade, operation and maintenance and support

In the SaaS model, maintenance and operational responsibilities belong to the provider. This means that, for an agreed subscription fee, customers can use tools and applications through the cloud without having to worry about maintaining the software, and service continuity is guaranteed.

Buying cloud services is like using electricity: you pay when you use it, and you pay for electricity at the end of the month, and you pay monthly, and you certainly don’t buy equipment and generate your own electricity. Therefore, the software world redefined by SaaS will become a service provider in the true sense.


Workstem is a one-stop cloud & human resources management platform that covers various business needs such as employee onboarding, scheduling, attendance, leave management, payroll calculation, MPF, and tax declaration, and is committed to helping Hong Kong companies realize digital transformation of personnel management and improve corporate efficiency, employment compliance, and accuracy of grain calculation.