Startup Guide: How to choose the right SaaS HR Software for your company?

Vicky Jain, Founder of, uKnowva writes on how small businesses and startups should consider using HR Software to manage their human resources.

CIOL Bureau
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Startup Guide: How to choose the right SaaS HR Software for your company?

In today’s competitive era, implementing an effective HR strategy is the need of the hour to stay relevant. HR is such an important vertical of an organization that every company of all sizes would like to optimize. Many MNCs are now using HR software. It’s still a new concept for small-sized companies and startups because they don’t feel it’s cost-effective. They don’t know how these companies can kickstart quickly without having to heavily invest in IT infrastructure and maintenance.


The Global SaaS-based HRM Market is projected to expand at a CAGR of 10.2% over the forecast period i.e. 2016-2023. The market further estimated to reach from USD 11.93 Billion in 2015 to USD 20.3 Billion by 2023. Unlike the traditional method of managing HR, the new HR management software is proactive. It also helps organizations look ahead for their future needs and develop HR strategies accordingly to the need of the enterprise.

Why do small businesses and startups consider using HR Software?

It is a myth that HRM software is usually associated with large organizations and enterprises, where the HR needs to manage a large number of employees. But today, the cost-efficiency of saas-based software and its cloud-based delivery has made the whole software accessible for everyone. It’s highly effective for small-scale business setups to do away their dealings with spreadsheets and piles of paperwork, including employee records; which is not an efficient way of managing HR.


Many are also of the opinion that HR solutions are difficult to implement and manage. But that’s not the case anymore. Some providers even offer the basic versions of their HR solution for free on a trial basis. Modern HR solutions have come a long way from traditional on-premises solutions. They are now a much easier way to deploy and use.

Picking the right software

The advent of the internet has made us rely more on Google. Right from buying medicines to the right cloud-based HRM software, we completely rely on Google for the suggestion. However, you yourself need to have a clear view of the specifications you need for your enterprise. According to the experts, the first step is to comprehend and analyse your company’s needs and then define the aims of the software usage. This you have to do on your own. Google can’t help you with that. While doing all these, you need to monitor the current HR technologies your company is using and what are the major advantages and disadvantages of the same.


Analyze the work of your HR department thoroughly. It is crucial as it will enable you not only to define processes that require automation, but also the areas that can be improved in other ways. For the same, one needs to have a brainstorming session with the team, asking employees in the HR department to give some ideas for the betterment and also reaching out to other employees to know what challenges they face when communicating with the HR department. By making a note of all these requirements, one can start screening the possible solution online.

Choose a cost-efficient, but balanced approach

Once decided on the most essential features needed by your organization, you would need to arrive at a budget for the cost of ownership of the product for future evaluation of return on investment. To have a first-hand experience and a greater understanding of the user interface, make sure to take a product demo or try using the trial version of the available HR software. This shall guide you to make a successful purchase decision.

Keep a balanced approach while ensuring the product has an ecosystem that supports continual improvements via customization or extensions. Consider going beyond the primary needs, by making sure the platform is compatible to give insights and analytics to make impactful business decisions. Make the final call for the right HR software that fulfils your organization requirements post evaluation of all the necessary factors. With a suitable SaaS HR software in place, reap the benefits of HR automation through increased productivity and cost-effectiveness for strategic business growth.

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