Is Core HR Changing?

Workforce.com has an article available exploring how the perception of core HR software is changing as new players enter the market. It raises some very interesting questions about how HR processes and functions are evolving. Applications and features that might not have been considered “core” are now viewed as essential by many organizations. At the same time, traditional ways of delivering core HR applications are losing ground. Employers are getting used to the idea of hosting even the most basic aspects of personnel data on an HRMS in the cloud or on a server operated by an SaaS provider.


The most obvious difference between the HRIS of today and 15 years ago is advanced reporting capability. Companies aren’t content to simply use HR to administer a workforce anymore. True human capital management is coming into its own – and the decision-making process is driven by data, data, and more data. A core HR suite that doesn’t provide business insights is missing fundamental functionality.

SaaS Vendors Rely on Affordability to Build Market Share

For large businesses with an established on-premise HRMS, letting go of that substantial investment to go with an admittedly more cost-effective SaaS solution can sometimes be a tough call. There has to be a clear reason to switch based on if the suggested SaaS replacement actually improves HR processes and if it has a good ROI. However, for small businesses just starting up, the choice is a little easier. They can get affordable access to a greater variety of core HR products without having to worry about the IT side of things. Also, they may have fewer concerns about building interfaces with backend systems since their overall IT picture is typically simpler.

Greater Core HR Compliance Is Needed

One area where neither large enterprises nor small businesses can afford to skimp is HR compliance. This aspect of core HR software should be considered just as important as fancy reporting functions. However, many vendors are still lagging behind in building rules enforcement for things like records retention, E-Sign Act compliance, audit trails, and so forth into their applications.

At Emerald Software Group, we’re actually at the leading edge of HR software that focuses on increasing compliance. That’s one reason we consider our Universal Onboarding software a component that should be part of every core HR system. After all, new hire forms are where your HRMS data comes from in the first place. Eliminating errors and omissions in this part of the data collection process should be foundational – not an afterthought.

HR Software Selection Myths Part 1

People-Trak has an educational pdf available about HR software myths and legends. It offers a look into the mindset of the inexperienced software buyer. It’s definitely a thought provoking piece and worth a read. Here are some of the highlights along with how they apply in the field of onboarding software.


HR Software as the Unlimited Problem Solver

Just as HRIS won’t make all your blues go away, an onboarding system isn’t guaranteed to eliminate snafus. Not every software product for new hire onboarding is created equal. You need one (like Universal Onboarding) that will enforce rules regarding how each data panel is completed. Otherwise, HR will still spend hours dealing with exceptions in new hire forms. You also need to take a close look at all the policies you have new hires sign off on during onboarding. Your software can support you in collecting acknowledgements, but it won’t protect you from litigation if your policies are not compliant with labor laws.

HR Software Complexity and Expense

It is possible to overspend on HR software – if you don’t understand what you need. You should review both the actual functions of an application and how each function dovetails with your organization’s business strategy to determine whether a product is worth its price tag. For example, onboarding that enhances compliance and automates processes has a high value for any business. With SaaS options and a fee based on a “per new hire” schedule, the costs are minimized without sacrificing quality.

Extensive HR Training Requirements

People-Trak suggests that HRIS software should be designed to simply automate tasks and therefore should require little training. We agree that a well-designed system should be easy and intuitive to use. But it’s not true that automation is all an application should offer. If a software product does not actually improve the way you carry out HR processes, it’s probably not a Best of Breed solution.

Making The Case For ESS And Onboarding

Hagel and Company have put together an excellent article on how to build a business case for buying HR software. The arguments they make are designed to convince executives to invest in HR technology such as ESS even when the economy is taking a beating. Here are their arguments and some thoughts about how implementing an ESS and Onboarding at the same time might be an even smarter move.


HR Software Must Align With Business Goals

Pretty much all businesses want to increase productivity while lowering costs, so that’s a good goal to align your HR software purchase with. Reducing or eliminating paper forms is one way an ESS can help achieve this goal. It also means each employee is responsible for making updates to his/her own data directly in the database, saving HR the trouble of rekeying data into the HRMS.

Sound familiar? Yes, Universal Onboarding does the same thing from day one when most employee paperwork is typically generated. When you use automated onboarding, new hires will naturally adopt use of the ESS as well. It promotes a DIY culture that can minimize routine employee queries to HR. Interfacing onboarding directly with an ESS portal means no extra work for HR in setting the new employee up in the system.

Stop Wasting Time

Hagel and Company point out that 80% of HR’s time is spent on low value, routine processes. They don’t mention where they got that statistic, but even if your organization only spends 50% of HR’s labor hours on repetitive admin, that’s too much. Automating the transfer of ESS and onboarding data into an HRMS or other back end systems saves HR time and reduces errors. The time saved can be used to mine data from these applications to be used in developing better HCM strategies.

Positive Framing is Essential

Check out the full article for how the author suggests framing your business proposal. It involves steps like identifying the functional requirements for the system, explaining the shortcomings of your current system, and more. One step that differs is the ROI calculation. The author mentions the costs being loaded at the front end. That’s true for traditionally licensed software. With SaaS, the costs remain constant (and affordable) over time.

Combine Your Efforts

With either approach, there will be a time investment with IT and HR to implement the onboarding software. The time commitment varies depending on the number of integrations required. Assessing onboarding and ESS at the same time makes it possible to ensure the systems are compatible (Universal Onboarding is compatible with most ESS portals). Plus, rolling the two projects into one might make it easier to get IT to collaborate.

HR Tech Best Practices

Workforce.com has a new whitepaper available on Best Practices in HR Technology. It’s free (registration required), so make sure to request a copy. The paper covers different aspects of technology selection and implementation with contributions from major players like SAP, Ultimate Software and Workday. The first segment is about questions HR should ask potential vendors. Not surprisingly, 2 of the 7 questions are about SaaS. Customers expect 24/7 accessibility and selecting a web-based application is one of the easiest ways to ensure this.

Ultimate Software also talks about the latest HR technology buzzword “unified”. So, you can expect to see more discussions comparing pros and cons of unification vs. integration – just like the current discussions about integrating vs. interfacing. Of course, as a suite software provider Ultimate Software has a vested interest in highlighting any problems with integrating applications from multiple vendors. There’s a balance to be struck between the ease of using a unified system and the strategic benefits of selecting and integrating Best of Breed modules. Chuck Ros talks about precisely this topic in his ere.net article here.

A Payroll Provide Weighs In

Perquest offers some interesting insights about the complexity of HR. According to a recent research study, human capital management at many mid-sized companies is as complex as it is for large organizations. The belief that the challenges faced by HR are directly tied to the size of the workforce is widespread but just doesn’t hold true. So, mid-sized employers may be allocating less money than they should to strategic technology initiatives for HR. This can have serious repercussions.

The fact is that a mid-sized company must meet the same standards as a large company for labor law compliance. The actual risks associated with non-compliance in HR may actually be higher for mid-sized businesses than for large businesses. A single costly incident can disproportionately impact an organization with less capital and fewer high-priced lawyers on speed dial.

Perquest noted that the complexity of compliance is one reason employers often outsource various HR and Payroll functions. However, there are some processes such as onboarding that can’t be effectively outsourced (since using a PEO doesn’t necessarily protect against non-compliance penalties). So, HR may want to use a blend of outsourcing and internal process improvements to achieve their compliance objectives. Implementing Universal Onboarding is a good place to start for mid-sized businesses since the costs are low, ROI is swift, and the benefits are easy to communicate to upper management.

What Is Your HRIS Input?

HR software expert Clay Scroggin has an interesting perspective on one aspect of HRIS that some clients don’t think about until after they’ve bought a product – how much input will be required? He breaks down the topic into several different categories. First, there’s the data you will have to transfer as a one-time effort. This could include importing from other existing programs such as from a simple employee database into a full service suite. He points out that benefits data is often not directly transferrable and has to be typed in painstakingly by hand (although this is changing in the age of SaaS applications which often have a high level of built-in interoperability).


Then, there’s the data that needs to be updated on a regular basis. An interface can allow this to happen electronically; but there’s often still some human action required to set the process off. Even if it’s as simple as pushing a button to run the importing function once a week, that’s still something that HR has to remember to do - or IT has to set up a script to run the transfer of data automatically. There will always be differences in content between HRIS and other systems (such as Payroll) in terms of real time data unless they are actually fully integrated with one another. There’s a third type of input, but you’ll have to read Scroggin’s article to find out what it is.

What’s the Input for Universal Onboarding Software?

An onboarding module requires input just like any other aspect of HRIS. The first set of data is input by the new hire. Some of this information may actually be imported from a recruiting module if one is interfaced with the onboarding system – but either way that part of data entry is done by the job candidate or new hire rather than by HR staff. Once the new hire’s part is done, the forms are forwarded to the hiring manager and/or I9 administrator for review and final signatures. Input of information into e-Verify may be required at this time. The distribution of data to other back end systems can be carried out automatically based on internally determined rules. HR may also need to add new forms or update old ones from time to time (e.g. company policies). However, all government forms are kept current in the Universal Onboarding library by Emerald Software Group so HR doesn’t have to worry about that particular input.

How Can Onboarding Software Be Leveraged To Save Money?

Over the last few weeks, we’ve looked at the ways HR software delivered via SaaS and cloud computing is attractive to business owners; but what about onboarding software in particular? Where does it fit in the strategic picture for IT, HR, and business leaders looking to cut costs? Are there any compelling reasons to add an onboarding module to a suite of advanced SaaS HR software that already has recruiting, training, benefits management, ESS, and succession planning functions?


Actually, there are several arguments that can be made for the value of an automated onboarding program no matter how good the rest of your HR software already is. First, the quality of the data in your HRIS database is only as good as the data entry that supports it. New hires often make errors in their paperwork or leave out critical information on electronic forms. If HR notices these mistakes, they may get fixed (requiring extra work). If not, data errors end up going into the system where they may be distributed to other applications.

For example, a W4 with conflicting elections will wind its way to Payroll where it can cause problems with tax deductions on an employee’s paycheck. With an I9, the issues might not become apparent until the ICE auditors show up – and then it’s too late. Automated Universal Onboarding software completely bridges the data collection gap between Recruiting and general HRIS. It eliminates redundant data entry and prevents new hires from making mistakes or leaving required fields blank on their electronic forms.

So, these are 2 of the most obvious ways onboarding software can be used to save money:

1. Eliminating errors and omissions in both initial forms completion and distribution of data to HRIS and other back end systems. This increases compliance with labor laws and with internal company rules.

2. Replacing an inefficient hybrid of paper and electronic systems with a fully automated virtual HR process for onboarding new hires. This cuts administrative costs immediately and supports corporate eco-friendly initiatives.

The SaaS and cloud based versions of Emerald’s onboarding solution also deliver benefits such as vendor-provided maintenance, high levels of data security, constant system availability, pricing based on actual usage, and immediate scalability during peak hiring seasons. Finally, increasing the efficiency of data collection during onboarding permits the implementation of tax credit forms that allow businesses to capture incentives from both state and federal governments.

Microsoft Talks SaaS

Microsoft is a leading force in the cloud computing revolution, so it’s not surprising that they have an interest in educating consumers about Software as a Service. Their knowledge library includes helpful information for IT departments exploring the benefits of SaaS. The material presented is straightforward enough for decision makers outside of IT to grasp easily as well. So, it’s a good resource for HR directors and VPs who want a crash course on the topic.

Risk Reduction

One of the first areas addressed in the MS article on SaaS is on reducing risk for IT in software selection and implementation. Acquisition and deployment is a risky process for IT. Rolling out an enterprise-wide system is complex, time consuming, and costly. With on-premise software acquisition, it is not unusual to get partway into the project and discover that it will be significantly more difficult and expensive than originally assumed. However, it is often too late to turn back at that point because a substantial investment has already been made.

Implementing SaaS isn’t always a walk in the park, but it is much easier to walk away from an SaaS deployment if it isn’t working out. This increases the chances that the final outcome will be satisfactory rather than a compromise that was reached just to put a cap on a project that is turning into a “money pit”.

IT and HR Both Stand to Gain from SaaS

Microsoft makes a good point that SaaS offers IT an opportunity to shift its focus from administrative tasks such as maintaining software to more strategic initiatives. Instead of spending all its resources on supporting the software applications, IT staff can turn its attention to ensuring that the applications in question are actually aligned with the business objectives of their organization.

In the case of Universal Onboarding software, SaaS delivery accomplishes the goal of creating greater efficiency for both IT and HR. With this application delivered via the web to handle new hire processing, IT and HR can spend less time trouble shooting and responding to crises and more time finding ways to increase performance, productivity, and workforce satisfaction.

What HR Executives Want From SaaS

SaaS vendor Plateau Systems and advisory firm Saugatuck Technology released the results of an interesting survey earlier this year. The 200+ HR executives who participated in the study made it clear that they have compelling reasons to choose SaaS. Plus, they know what they want in an SaaS vendor. Online software access has become common enough that the novelty of the delivery system is no longer a prime selling point. Businesses can source core HR software from among a broad field of competitors. So, executives can afford to make comparisons.


Up front implementation is one area where businesses are looking to save money. By now, human resource execs know that it’s easy for an SaaS product to look great in the slick sales brochure - but that everything will fall apart without appropriate interfaces. HR is are catching on to the fact that they can’t just contract with an SaaS vendor and expect IT to do the heavy lifting in making the application work. Employers expect vendors to provide implementation assistance and troubleshooting. Ongoing support is also a negotiating point at the HR table. In other words, they want the service part of the Software as a Service package to mean something.

Effectiveness Draws HR to SaaS

As the focus in HR turns more and more toward strategic planning, executives are realizing that their business performance is lagging compared to other departments. They have the right priorities but simply don’t have the right tools to improve operations. While core HRIS is a central feature of SaaS for HR, niche products are also being sought to address strategic needs quickly and efficiently. Talent acquisition, management, and retention are all key areas where HR is trying to close the gap.

Onboarding is an obvious area of potential improvement for the mid to large size businesses involved in the Saugatuck survey. From the perspective of service, Emerald Software Group makes it a priority to help clients ensure a successful onboarding software implementation by collaborating with IT and HR. We also address another top HR executive concern (data security) through adhering to industry best practices. For more information, contact us at 770-569-5122.

Can HR Negotiate Better Software Deals?

The HR Capitalist has an amusing and insightful blog post up about why so many Human Resources professionals tend to be poor negotiators. Many people get into HR because they enjoy helping people – not because they enjoy driving a hard bargain. This generous attitude has its place in creating great employee relations, but it doesn’t serve HR well at the bargaining table when money is on the line. HR decision makers need to be ready and willing to negotiate with their software vendors to get the best product and the best deal.
Pricing Isn’t Always Set In Stone

For core HR software that can be purchased from many different vendors, pricing is usually a negotiable point. This is more likely to be the case with on-site licensed products than with SaaS. Vendors that use traditional licensing as their primary business model often have significant wiggle room if their pricing is inflated. Figuring out where the padding is can help HR determine where to ask for price breaks. Pricey ongoing maintenance/service packages allow many of these software vendors to generate a substantial portion of their revenue. This is an area where HR may be able to vigorously negotiate for better pricing.

In the SaaS market, the profit margins are not always as flexible. The vendor is already taking primary responsibility for all the software maintenance, upgrades, security, etc. Plus, these vendors are often pricing their products very aggressively to earn a larger market share in an industry still dominated by traditional licensing. However, with SaaS vendors who require a contract rather than a no-commitment monthly subscription, there is sometimes a potential to negotiate a longer contract term in exchange for a lower fee. It never hurts to ask.

It’s Not All about the Money

Niche and Best of Breed HR software vendors may be less likely to come down on their pricing because they are not in competition with as many other products. However, this doesn’t mean there is nothing on the table to negotiate. For example, your organization might need to interface the vendor’s software product with another application such as your HRIS, ERP, or a third party program.

A savvy SaaS vendor might have a vested interest in helping develop such an interface. Building a track record of successful interoperability with a broad category of applications gives the vendor a competitive advantage and widens their prospective client base. At Emerald Software Group, we are constantly adding to our portfolio of interfacing capabilities for Universal Onboarding. So, let us know your needs in this area – we are ready and willing to negotiate!

Newest HR Software Terminology – PaaS

Software as a Service (SaaS) has become practically a household name in the HR industry. However, there is always a new development just around the corner and it’s hard to keep up with the technical lingo. The latest concept making its way into HR software vendor’s vocabularies is PaaS. Platform as a Service refers to more than the practice of offering a specific application over the web. With PaaS, Web 3.0 is in the mix. Software companies develop and run instances of their applications on the cloud computing platform. These resources are made available as a service by companies such as Amazon. Client data is hosted, stored, and transferred using virtual servers (this part of the picture is sometimes referred to as IaaS or Infrastructure as a Service).


What’s Different for HR?

The actual applications are still accessible via the internet just like traditional SaaS. The end user’s experience of the software doesn’t really change with a PaaS approach. However, there are other issues that can impact HR software choices from a strategic perspective. With virtualized servers and highly flexible platforms, it is possible to run an entire HRIS suite in the cloud environment. What was once the province of niche applications is becoming a standard offering from even the largest HR software vendors. IT and HR will need to collaborate closely to determine if and when moving the management of HR data and processes to the cloud is beneficial from a cost, maintenance, and security perspective.

The ability of smaller, niche HR software providers to serve clients is also enhanced with the advent of PaaS. Now, it is possible for them to run as many instances of an application as needed without increasing their costs for maintaining a permanent infrastructure. This server space and the computing capability being used can be scaled up and down practically instantaneously (which is why Amazon’s service offering is called the Elastic Compute Cloud). The ability to provide a separate instance of an application for each client also means SaaS vendors can offer greater customization without significantly adding to costs. Vendors can also serve a larger client base with rapidly changing capacity requirements.

Coming Soon?

There is speculation that Web 3.0 will make using multiple SaaS products together much simpler as interfacing between various programs becomes more commonplace. The popularity of Service Oriented Architecture (SOA) in software development has already moved web-based programs in this direction. SOA makes applications more likely to be interoperable as a basic design feature instead of an afterthought. This advance will create more flexibility for HR departments that want to use many Best of Breed niche products for the highest level of functionality in all areas of human capital management. HR might eventually have the option of ditching outdated suite software that contains applications that aren’t needed or used and simply cherry picking the best tool for each job. Of course, at Emerald Software Group, we’re already offering Universal Onboarding as a PaaS option for our clients. It’s a great place to start!

HR Versus IT: Rogue SaaS Applications

One of the benefits associated with greater mainstream acceptance of SaaS is that it reduces the conflict between HR and IT. Business leaders in many different departments are often tempted to implement SaaS solutions without input from IT. That’s because the process of vetting software can seem to take forever. When strategic decision makers get tired of waiting around, they may move forward on their own. According to survey results floating around the blogosphere, IT often has no idea that managers are going behind their backs to contract with SaaS vendors. As you can imagine, when a CIO finally catches on to the presence of these “rogue software applications” this doesn’t go over well.


Why HR Might Circumvent IT

In many HR departments, just getting through the day-to-day pile of work is hard enough. Lobbying for support from IT to get new software implemented can take a lot of time and effort. Often, it seems that any suggestion regarding software improvement that doesn’t originate in IT is summarily rejected. Plus, HR may have a very small budget to spend on upgrading their processes. This makes the use of SaaS applications that don’t require IT involvement very appealing. SaaS vendors know this and will often use it as a selling point for their products.

Pitfalls of this Approach

When an HR director decides to go rogue and sign an SaaS vendor contract behind IT’s back, there may be serious problems ahead. A back door approach to implementation does nothing to strengthen collaboration between HR and IT. That may be bad news later when events transpire that lead to the discovery of the maverick software. This can happen if:

• HR realizes after the fact that the SaaS application requires customization to make it work for their organization

• The application interferes with other company software systems

• The software needs to be integrated with other, existing HRIS applications to make it really useful

• The vendor did not provide adequate security or data backup services and critical employee data is compromised

It may be easier to ask forgiveness than permission. But no HR executive really wants to have to go, hat in hand, to IT for help solving a problem with an SaaS application that IT didn’t approve in the first place. At Emerald Software Group, we encourage HR and IT to work together. We’ve got the expertise to speak their language as well as yours – so you have someone in your corner at the negotiating table.

Ease Of Training A Plus for HR SaaS

Blogger Andy Porter from Fistful of Talent offers a particularly candid view of what HR executives really think about most HR software sales reps. His many pet peeves include the habit some vendors have of sending an entire entourage to make a presentation when only one person is really required. Fancy graphics that don’t really convey useful information is another issue causing Porter to feel angst. All he really wants to know from HR software technology vendors is:


• How easy it is to for end users to operate the system

• How it will help managers do their jobs better

In Porter’s opinion, software should be so easy to use that it doesn’t actually require training. It should be designed to be intuitive and self explanatory. To his way of thinking, offering extensive training on a system isn’t a plus. It’s an indication that the developer has not put the customer’s needs first in designing the system. SaaS applications have an obvious advantage in this area since basically every end user is familiar with web based software.

According to Andy, the benefits to managers should be simple enough to sum up in a few clear cut sentences. The answer shouldn’t be a long-winded explanation of what the software can DO from a bells and whistles standpoint. It should be about what actual results it creates for the client’s organization. Many SaaS HR solutions do actually give managers powerful tools for working more effectively. However, Porter is quite correct in his assertion that not all vendors know how to communicate this fact.

How Does Universal Onboarding Measure Up?

From the viewpoint of a new hire, Universal Onboarding is completely intuitive. The only instructional prompts needed are provided on screen as the user navigates this wizard based application. Training for HR administrators is pretty straightforward as well. The process of creating new data panels is one HR personnel will already be familiar with if they know how to use Adobe Reader. In the event that any in-person training is desired, this can be provided on site or at Emerald Software’s facilities.

How does this software help HR managers do their job better? Reducing the cost of onboarding, eliminating errors and omissions on forms, and increasing legal compliance are the three biggest ways our solution achieves this objective. That’s just the tip of the iceberg as you can see if you browse our Universal Onboarding product details.

Can SaaS Work For Large HR Departments?

While many current SaaS solutions are targeted at small to mid-sized businesses, there are a number of larger corporations that are testing these waters as well. Some challenges are unique to large businesses when using remotely hosted software both for niche services and enterprise-wide solutions. This is especially true in multi-national organizations where data privacy regulations in foreign countries may prohibit certain types of information storage and transfer.

Workday Takes On the Tough Questions

Author Stan Swete on Workday.com posted a blog article in September that highlights additional issues. He addresses many common concerns clients have about using SaaS and cloud computing for core HR systems in organizations with more than 5,000 workers. It’s a quick read and well worth a perusal. Below is our take on some of the questions he raises.
On the one hand, using a full suite of SaaS products from a single HR software vendor helps ensure ease of integration between the hosted applications. However, it also means that the SaaS solutions may “touch” many more applications throughout the enterprise structure. This can impact the cost and complexity of interfacing the HR system with other applications.

Far Reaching Service Reliability a Must

When faced with servicing a workforce numbering thousands (or tens of thousands) of employees, small-time SaaS vendors may not have what it takes to handle the workload. Those that are most likely to be successful from a scalability standpoint are taking advantage of the cloud platform to cater to clients of all sizes. For multinational employers, SaaS vendors must also be able to guarantee reasonably reliable access from any point on the globe. Not every country has high-bandwidth capability, so this must be taken into consideration during the planning stage for global integration of an SaaS solution.

Customization is Vital

In addition to scalability, multi-state and multi-national companies must have the capability to customize workflows within the SaaS application to meet local employment law requirements. This is critical from an HR compliance standpoint. Vendors who offer just an off-the-shelf solution or who run only a single instance of their application can’t generally supply this type of targeted service. However, at Emerald Software Group we have designed our Universal Onboarding system to be configurable for any unique business process you require. This customizability is built in to the system since we know that labor laws are constantly shifting and HR needs to be able to keep up.

HR Software and Blended/Hybrid SaaS

Over the last few weeks, we’ve been looking at a lot of the reasons HR may choose SaaS over on-premise software. This special report from Workforce.com offers an in-depth look at the options available for HR applications.


What is Pure SaaS?

This definition is, of course, open for debate. However, here’s one description of what a pure SaaS vendor might look like: The vendor would have data from multiple clients all stored in the same infrastructure and run on a single instance of the software leaving it somewhat vulnerable to catastrophic failure or security breaches. Little or no customization of the application would be possible for individual clients beyond basic settings options. All upgrades would be mandatory – regardless of whether they interfere with a client’s existing interfaces with back end systems.

The Reality of SaaS

Obviously, most vendors in the HR software sphere aren’t advertising products that have such serious limitations as those you might see with “pure” SaaS. They may work with one of a variety of different multi-tenancy structure approaches that securely segregate each client’s data and offer some flexibility in tailoring the application to the client’s needs. In addition, many SaaS vendors give customers the option of whether or not to deploy various updates based on the impact this would have on the client’s other systems.

Some SaaS vendors even offer a distinct instance of their application for each client that can be customized to match an HR department’s unique business rules. They also completely partition one client’s data and software application from the next by creating separate “virtual” servers. With the advent of cloud computing and server virtualization software, this has become a way for SaaS vendors to offer customization and higher security without driving up the cost of their products too much.

Emerald Software Group Offers Hybrid Options

A number of vendors in the HR field offer on-premise software, a multi-tenancy model of SaaS, and a dedicated instance of their application delivered online. However, in the onboarding niche this is not the case. Virtually all of Emerald Software’s direct competitors offer only an SaaS version of their onboarding software with no on-premise version available. We don’t believe in turning customers away when we can accommodate their needs by staying on top of clients’ demands for flexible options. That’s why we have so many different choices available including licensed, hosted, and managed versions of our onboarding software.

Why SaaS Is Working For HR – Part 2

In this second blog post about how HR is utilizing SaaS solutions, let’s take a look at another article that talks about our current topic. This is a piece from 2008 which may seem like eons ago in the fast paced world of technological evolution. However, it still makes some points that are relevant in 2010. Author Cindy Waxer at HR World contrasts the previous dearth of niche solutions with today’s array of choices for every application. There is really something for everyone, from performance management to new hire onboarding – any process HR wants to focus on improving can be addressed by a specialty program.


ERP vendors are struggling to keep up since rolling out upgrades for fast implementation by end users is not exactly their forte. However, some major players are offering more “off the shelf” functionality than before that permits HR to add on features as needed when their current suite falls short. Unfortunately, for clients using older versions, implementing these newer solutions can still be a very lengthy process.

That’s one reason newer businesses sometimes choose to build their HRIS from the ground up using SaaS solutions rather than investing in a system that will be outdated almost as soon as it is up and running. Companies with existing ERP systems are also choosing to add new features using products provided by SaaS vendors rather than launching extensive projects to revise their legacy software.

Will On-Site Licensing Persist?

In the future, a non-SaaS performance management solution outside those sold by the really big name vendors in HR software may be hard to come by at all. According to Waxer (quoting an IDC study) over 80% of vendors in that niche are already using the SaaS model to deliver software services to their HR clients. This doesn’t mean SaaS is always the best way to go. But as it becomes more prevalent, the momentum of the movement is likely to convince more and more employers that this type of solution has merit.

SaaS for HR Is Expanding in Scope

While SaaS has long been viewed as the province of niche software suppliers (including Best of Breed providers like Emerald Software), some vendors are beginning to expand their offerings to become more like traditional suite providers. It will be interesting to see to what extent these companies maintain their agility as their portfolio of product offerings grow. These vendors will need to remember that ease of integration with other solutions is still critical.

The more collaboration and cross compatibility we SaaS solution architects can generate, the better our chances of survival in a world where HR clients have an ever growing array of options. The days of crowding out everyone else are over – even for the giants in the HR software industry. This is why we focus strongly on building strategic partnerships. In the end, it is likely that those who cooperate the most effectively will be the most successful.

Onboarding Software And SaaS

Last week, we took a look at Emerald Software Group’s traditional licensing option and why this is one of the choices we make available to our clients. Now, I’d like to talk a little more about our Software as a Service (SaaS) solution and why it is popular with so many of our customers.

Minimal Up Front Investment

With the SaaS hosted agreement, there is no license to pay for. Clients simply pay a set price per new hire per month for access to the software application and accompanying data storage. Maintenance and upgrades are included, so there are no unexpected expenses. Treating this software as an operating cost rather than a capital expenditure makes budgeting much simpler for some employers. ROI is easy to calculate and cost savings are often realized as soon as the client begins using the system.

Infrastructure Costs are low

When we host the software on our own servers, an employer’s setup costs are minimized in several ways. No hardware needs to be purchased or upgraded to implement the onboarding solution. The client only needs to provide internet access and a computer terminal – something every modern HR department already has in place. With our recent addition of a cloud computing option, each client’s access can be immediately scaled to handle a higher volume of new hires as needed. There’s no cause for IT to worry about purchasing additional server space or equipment.

Limited IT Involvement

With our SaaS option, IT does not have to invest significant resources in implementing and maintaining the software. It’s still necessary for IT to be involved in initial discussions to make sure everyone is on the same page regarding topics like data security and integration with backend systems. Fortunately, our products are designed to interface readily with most top brands of HR industry software.

HR clients appreciate the fact that they can finally automate their onboarding processes without waiting for IT to allocate a huge chunk of time to the project. We take care of the setup and maintain the software so your IT department doesn’t have to. This works well for:

• Small businesses that might have only one or two IT employees who can ill afford to spend time meeting HR’s needs

• Mid to large sized businesses that tend to adopt new technology slowly because the process for approving and implementing new software on-site is unwieldy

Fast Results

For HR departments that want to move quickly to reduce risk and increase compliance with labor laws, the SaaS option is often ideal. Speed to implementation and full adoption is very fast for most of our clients because they can leave so much of the process to us. At the same time, HR can be as hands on as they like in developing the electronic forms and workflow to ensure onboarding is carried out according to their company’s business rules every time. To learn more about Universal Onboarding and SaaS, go here.

Why SaaS Is Working For HR – Part 1

HR is one industry that is on the leading edge of SaaS adoption. In this blog post series, we’ll dig into several questions:


• Why HR?

• Why Now?

• What’s Next?

To start things off, take a couple of minutes to read Tom Malone’s TLNT piece on “The Top 5 Myths about SaaS”. The author delivers an even-handed look at what SaaS currently does and doesn’t offer. For example, some people think that SaaS solutions aren’t an option for handling complex processes. In fact, any BPM software application (or set of applications) that could be hosted on a legacy server can be hosted in “the cloud” and have its functionality delivered via the web.

HR Can Integrate Processes

In addition, the best SaaS solutions are constructed using an SOA (Service Oriented Architecture) approach. This means they are modularly designed with integration capability built in rather than tacked on as an afterthought. This is one reason HR looks to SaaS to address evolving needs that involve interfacing with other applications. HR processes touch those of many other departments such as IT, Payroll, Production, etc. Data must be shared for purposes of scheduling, security, and much more.

An on-site ERP suite can often provide this type of inter-compatibility; but rolling out new solutions may sometimes take more than a year of work on the part of IT. Here’s a story about Chiquita (the banana company) that shows how one employer decided to ditch the snail pace of traditionally licensed ERP development for the faster, global ERP implementation provided by an SaaS vendor.

HR Can Address Critical Needs

Of course, niche HR products that address a specific process such as onboarding are also attractive options for companies that have already heavily invested in an on-premise ERP solution and simply want to add more functionality. When HR’s budget is tight (which is pretty much always), promoting the use of a single SaaS program delivered via the web can be a lot easier to negotiate than a full system overhaul. Depending on the application and the degree of customization required, the roll out time for an SaaS product can be weeks instead of months.

Onboarding Software and Traditional Licensing

At Emerald Software Group, we believe in giving our clients options that will work for every situation. Our SaaS offering is very popular; but not every company is ready to have software solutions hosted offsite. This doesn’t mean they have to miss out on the latest innovations in onboarding automation. As a Best of Breed vendor, we differ from most of our competitors because we can and do license on-premise installations upon request.


When might this approach be appropriate? One determining factor is how much responsibility a company’s IT department wants to take for the software - and how much control they want to exercise. For example, they may have a risk management policy that precludes storing sensitive data on off-site servers. Or, they might simply want to have more ownership of each aspect of BPM development and integration.

Solutions are On Hand

There are a couple of different ways IT can meet these objectives with Emerald Software’s products. We offer both a licensed agreement and a managed arrangement. With an on-premise license, our software is run on client provided equipment. Upgrades and support can be negotiated separately from the perpetual software license. For a business with a fully staffed, experienced IT department, the ongoing labor required to deploy version updates and service packs isn’t burdensome.

As an alternative, we can pre-install the requested programs on an appliance server that is added to the customer’s data center. This managed option is billed on an annual basis, so it has a lower up-front cost. The level and types of support and maintenance that come with this managed agreement are determined based on the client’s requirements.

What about HR?

HR often doesn’t have the final say in which option to choose. Fortunately, your experience of using this onboarding automation software should be the same regardless of whether it is run on site or delivered via the web. This includes the ability to easily add new forms and data panels as needed.