A Quick Guide to Designing HR SaaS Software



The HR SaaS offers a framework for enterprises to build digital capabilities to experiment and optimize team management processes. Across the globe, teams are reliant on SaaS tools to get things done, work with greater efficiency and collaborate remotely.

The capabilities of an HR SaaS solution help organizations predict events like star performers, skill gaps, anomalous activities, and employee attrition.

What is HR SaaS Software?

The primary goal of an HRMS (human resource management system) is to organize and centralize HR department efforts. As a result, an HRMS saves the time and money of HR specialists.

HR SaaS systems help organize data, gather statistics, simplify financial operations, provide analytics, and provide employees with self-service options.

Based on their size, the system can be divided into the following:

i. Strategic HR systems: focused on talent management and talent acquisition.

ii. Core HR systems: focused on core functionalities of workforce management, including schedules, attendance tracking, and payroll.

iii. Integrated HR systems: delivers all essential features for effective and seamless human capital management.

The SaaS HRMS advantage

i. Significantly enhances the productivity of the HR staff by automating most manual functions, such as employment application processing, employee verifications, and employee benefits administration.

ii. HR SaaS systems offer considerable cost savings over on-premise HR software applications. By adopting HR SaaS solutions, organizations can avoid towering capital outlays related to deployment, acquisition, replacement, and maintenance of on-premise HRMS.

iii. The SaaS delivery model for HR applications provides organizations with the power to manage and access employee information on a real-time basis. Also, it is highly scalable, flexible, and customizable.

Elements of an HR SaaS Solution

Here are a few functions of an HR SaaS Solution

Performance and attendance management:

HR SaaS automates the management of employee attendance and performance.


Payment modules automate payment procedures and calculate taxes, sick leaves, vacations, and other deductions. This module can be extended to cover all employee transactions and integrate it seamlessly with the primary financial system of the company.


Helps HR managers in maintaining a recruitment list and aids in posting job listings across various social networks and job boards. Advanced recruiting models can track key applicants and make the entire recruitment process smooth and easy.

Benefits administration:

Thanks to online benefits administration, insurance, and retirement benefits are managed without any hassle.

Employee engagement:

This module keeps employees engaged and up-to-date with everything happening within the organization.

Day-to-day management:

Automates day-to-day HR management capabilities like tracking performance, storing data, payrolls, and so on.


Helps in managing employee training and tracking the performance of the employees. Based on the data, HR managers can craft individual development plans.

Scheduling and shift planning:

A must-have feature for companies where employees work in shifts. The HR SaaS software maintains and manages all details regarding schedules and shift planning in real-time.

Employee self-service:

Enables employees to perform HR-related tasks without involving the HR specialist. For instance, employees can make requests to get information regarding their payments, work hours, etc.

Management of leaves:

Manual management of leaves is time-consuming and requires a lot of hands-on labor. A leaves management module within the HR SaaS software assures zero human error.

Announcements, notices, and forms:

Automating all the forms, notices and announcements take a load off the HR team’s hands.

Talent management:

People are the greatest asset of any organization. A talent management system helps to study the job roles and identify gaps. In addition, it keeps a tab on the hiring costs and retention rates.


Actionable insights are provided by an HR SaaS system based on the employee data that the system collects.


New laws and changes affecting employees are happening almost daily. It is nearly impossible to keep up with the changes, but an HR SaaS solution can seamlessly manage compliance concerns.

Building your HR SaaS Software from scratch? Here are a few technical recommendations

1. Base your SaaS design on a solid architecture

Depending on what features you want to include in your HR SaaS software, you need to decide on an architecture and technology stack that is scalable. They must be capable of supporting the required uptime. When you’re building your software, keep these in mind:

I. Multi-tenant architecture Multi-tenant architecture is a software architecture in which a single instance of an application serves multiple tenants or customers. A software application in a multi-tenant architecture can share a dedicated instance of data, configurations, user management, and other properties.

II. Porting to a mobile app or mobile platform makes it easier to access the HRMS solution from any remote location. Besides these, think of implementing an API system and ensure your software can be customized on demand.

2. Clearly define non-functional system requirements

HR SaaS solutions have unique non-functional needs. For instance, they need an IaaS (infrastructure as a service) provider. When choosing an IaaS provider, you must estimate and consider the amount of traffic you expect for your platform.

3. Focus on security

Encrypt traffic and ensure sensitive data is securely stored. A secure access procedure is a vital part of your HRMS software. Failing to protect user data might result in high remediation costs and loss of business.

4. Pay attention to support

Design and implement an around-the-clock support system. The support service must be prepared to answer customer requests of all kinds. Users mustn’t find themselves stuck while using the HR software.

5. Conduct user research to create the information architecture

User research is required before you go ahead with the design and development of the HR SaaS software. The product will be ideally used across different locations within the enterprise. During the research, involve stakeholders and managers, along with the employees. By gathering accurate data, you can avoid guesswork and create software that is simple yet effective. Also, it’ll help you to identify the most vital features and the redundant features or can be merged into another feature.

From the data collected from user research, you can create the information architecture. Segregate the information that the users do not use. To reach the right place without confusion, you can break down the data into Action, Configuration and Report.

6. Developing SaaS software as a solution to the pain points

The HR SaaS software must be designed and built as a solution to the users’ pain points. The admin (user) must be given the control to see the data and customize the widgets according to their wishes. For ease of taking action, the user must make the changes on the home screen from the requests raised by the Manager or Employee. The reports must flow seamlessly with the information given by the different roles – Manager, Employee, CEOs, and the Admin. The admin should be able to verify the data and process to attain the objective quickly.

7. Ongoing gathering of statistics to fix bugs

The gathering of statistics must be an ongoing process. When it comes to fixing bugs, it can be paramount to decide how to improve the solution or identify and patching security vulnerabilities, software logs, and usage statistics. Ensure to implement the ability to gather usage statistics and store logs at the early stages of HR SaaS software development.

8. UX UI checklist

Designers can help create compelling and engaging HR SaaS solutions. When applied correctly, design thinking is a disciplined, rigorous method of solving problems. It allows HR to redesign and reshape the HR procedures within the organization and ensure positive employee interaction. So, if you’re thinking of designing an HR SaaS system, keep in mind the following  SaaS UX UI Design checklist:

I. Simplified UI: For building an HR SaaS solution, you need an intuitive platform that is uncluttered and easy to understand. The platform must offer as much information as required by employees. Typically, HRMS solutions overwhelm employees with an overload of information in the pursuit of data transparency. This approach proves to be counterproductive and, as a result, confuses users. Ensure your HRMS solution is user-friendly, innovative, and doesn’t give users more information than required.

ii. Consistency of experience across devices: You cannot create an HRMS solution with an exceptional UI but poor UX. To offer an excellent user experience, the solution must provide the same experience, no matter the device. The user experience must stay the same, regardless of the device. 

iii. Unified design: A SaaS HR system must showcase a unified design where a single window of data can be accessed without the need to log into different systems. The design needs to be simple and visually attractive. If you need to include a lot of data, ensure they’re in the form of decorative pie charts or graphs.

How are companies boosting their digital capabilities using HR SaaS?

i. Dynamic management of processes and reviews: Traditional processes management and reviews are driven by software and algorithms.

ii. Digital operations and workforce: HR SaaS help in building a digital workforce that is collaborative and connected in real-time. They’re in tune and deliver results proactively.

iii. Disrupt and reskill: HR software helps enterprises plan and implement training schedules proactively and calculate the economic impact of reskilling teams.

iv. Outcome economy: HR SaaS system tracks personal performances, employee timesheets, and goals. It helps companies get the best output for the employed resources.

v. Decreasing human bias: Technology is neutral, and therefore, HR software helps companies make the best decisions related to project allotments to employees, recruitment of candidates, and performance reviews.


The HR SaaS software market is still in its embryonic stage and has a lot of space to evolve. Organizations across the globe are only now starting to replace traditional, old HR systems that have been in place for several years. The focus is on automating HR capabilities for better resource and employee management and offering a great user experience.

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