What to Ask When Selecting SaaS-based Payroll and HR Software

Online, January 25, 2011 (Newswire.com) - If you're in the market for a new payroll and HR system, consider your options in Software-as-a-Service (SaaS). Unlike traditional installed and ASP software products, using SaaS requires no need to install and configure locally while SaaS providers support the software and maintain your data. Regardless of whether a company already uses a payroll and HR system in-house program or already has outsourced to another company, employers should analyze the benefits and costs of using Software as a Service.

Employers using a SaaS based system for payroll and HR software pay for SaaS on a subscription or per-use basis and not an upfront investment, simplifying budget planning, reducing upfront costs, increasing predictability of payments and lowering the total cost of ownership. Also, maintenance is minimal as the vendor assumes the responsibility for the hardware and software.

Also, Employers using a SaaS based system can log on anywhere with access to the Internet and a compatible browser enabling employers to process payroll, access HR information or handle benefits administration at all times. And, because the software is held on the vendor's servers, the vendor makes developments and deploys update without any user action required.

Questions to Ask a SaaS Provider

What do existing customers say about the provider?
Find out how many customers the SaaS provider currently offers services to and the size of these customers to gauge their level of experience. Customer testimonials also illustrate a way to discover this information.

What is the service renewal rate?
Find out how much it will cost to keep a subscription to their service and if the rates will remain the same after the initial deal.

What kind of training and customer support do they offer?
Comprehensive training is critical to be able to operate and utilize any new application. Ask about what support the vendor will provides and if there is additional costs associated with the support and training. Make sure a complete customer support package is available.

What are the integration capabilities?
Find out how the SaaS software will integrate with the rest of your environment and how it will work with your existing systems. Also, if the SaaS provider offers more than one service such as payroll services, HRIS and benefits administration, find out if those are on or separate applications.

What is customizable and how often are updates?
Find out what sort of options they offer and at what cost. Make sure the company frequently updates their SaaS software.

How secure is your system?
Make sure they have had a third party audit of the security of their system.

What to Look for in a SaaS Provider

Since SaaS based systems operate online, availability to access company data is vital. Vendors should offer 99 percent uptime for applications.

Integration within the SaaS system is also something to look for, especially if it is intended to function for payroll, HR information management and benefits administration. Compatibility with existing software is also vital, in order to streamline business processes and cut down on data entry mistakes.

Make sure the SaaS provider continually develops their software to keep up with constantly changing requirements regarding payroll and human resources information management.

Figure out if the SaaS vendor charges by a subscription or uses a pay-as-you-go for payment of the services

Make sure the SaaS provider can guarantee the security of the data, especially with the sensitive nature of payroll and HR information.