The ability to build HR software-as-a-service (SAAS) offers unique possibilities, and at the same time can present distinct challenges that organizations should be aware of and plan for to minimize disruption.
Technically, SAAS and cloud software are different, but in this situation, I'll use them interchangeably. Cloud is the ability to run software from large providers that run search engines, data storage and document sharing, for example. SAAS is a way to design cloud software that allows users and administrators to access the software via the Internet and change configurations. Most HR technology is both SAAS and cloud at the same time.
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Adoption Not as High as You'd Think
IT service management company Sierra-Cedar found in its 2017-2018 Human Resource Management System Survey that only 50 percent of companies have gone to the cloud. Contrast that with the fact that almost all HR software demonstrated at technology shows this year are cloud solutions, and this means that a lot of companies might be migrating to the cloud soon.
There are many potential financial benefits to moving to SAAS, such as reducing the need for servers in-house and scalable pricing. But the No. 1 benefit of moving to the cloud is the speed of transformation. The Institute of Electrical and Electronics Engineers pointed out that cloud computing is what will enable the world's economy to become a digital economy, because it is easy to procure, configure and use cloud software. As a result, turning on new software for your employees can be incredibly easy to do—in theory.
One of the more interesting aspects of SAAS software is that, while the systems are easy to turn on, encouraging adoption can become an organizational challenge. Imagine if overnight your favorite video-streaming service changed its user interface completely. How would you react? A popular photo and video sharing site changed its user interface, and almost overnight over 80 percent of its mentions in social media went negative.
Apply this to your employee base, and you are not only changing the user interface, but most likely you are changing process, too. Change management and strategic communications are critical. It's important to develop a solid strategy and detailed communication plans explaining why the change is occurring, what will be shifting, where to go for help and how to voice suggestions. The strength of the communications provided to the employees could make or break the success of the implementation. Be intentional and make superior employee experience a critical goal that is tracked and measured.
Guidance on Using SAAS HR Applications
SAAS and cloud HR applications have been around for about a decade. There are now some significant leading practices to know:
Keep up with innovation. System administrators often get release notes for new features. The administrator may not know the features well enough to realize the benefits. It is often easier to not turn features on, which can result in companies missing out on the most recent innovations.
Educate users on feature changes. Implementing SAAS means your users are going to have an ever-evolving set of features, whether they are mandatory changes or voluntary. So how should you train your workforce? One of the most recent and relevant innovations is the creation of a new software category called digital adoption platforms. You may have seen these pop-ups that guide you on how to use new software. But these new platforms are much more robust than just screen tips. The systems run reports showing adoption and usage and can communicate with the employee in a variety of ways. The platforms can extend across several systems, so you can help an employee move from one system to another.
Practice good governance. Using HR SAAS effectively is about governance. It is important to put in place a rigorous process that reviews your SAAS applications each month and to pay attention to ongoing adoption. Make sure to include all the stakeholders in the review process so they know about potential feature changes. This way, you can maximize the benefit and know when to develop strategic communications that align with the changes that are occurring to drive engagement and understanding while minimizing risk.
Consider the data. When looking to adopt an HR SAAS application, it is important to review what will happen with the data. First, understand how much data is involved in setting a system up and whether your organization currently has the data. Second, make sure the right data is available for the type of reporting the organization may need. Make sure SAAS contracts have the appropriate protections to get the company data out of the cloud system and in a format that is commercially viable.
Lastly, even though a system and its data may be in the cloud, it's crucial to know where the data resides. This is important because if, for example, a person in the European Union (EU) logs in to the system from France and provides his or her personal data, which then gets hosted on a cloud server that sits in Virginia, the system has moved the personal data across borders and is likely subject to the EU's General Data Protection Regulation. Many other countries have similar national rules that may impact how systems are set up in the cloud.
Franz Gilbert is vice president, solution provider programs, at Bersin™, Deloitte Consulting LLP.
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