Human Resources departments have typically managed people while remaining separate from other parts of an organisation. This is rapidly changing thanks to advances in digital technology, specifically Software as a Service (SaaS) based applications for human capital management (HCM).

This technology is revolutionising how HR departments serve managers and employees, integrating them into the fabric of everyday business. HR departments can generate data-driven insights to enhance workforce performance and thereby improve overall business performance. As a source of quantifiable value to organisations, HR has truly come of age.

HR Tech Fest 2015 Partner Accenture has identified five ways HR technologies, such has SaaS solutions, are changing the game for the HR function.

TREND 1: HR has more ownership of HR Tech

HR departments are seizing ownership of IT systems to achieve business outcomes and drive organisational change.

• Blurred lines of responsibility between HR and IT
• HR define if and when to uptake new or updated SaaS functionality
• HR own system configuration
• Overall reduced cost of ownership to the business

TREND 2: HR is becoming decentralised

Digitisation decentralises HR activities to users and embeds them in the business.

• Shift of power from HR staff to the user
• Greater access to and ease of reporting
• Improved user experience
• Reduced ratio of HR staff to employees

TREND 3: HR knows the business

Digitisation empowers HR to mine employee data for insights so it can ‘market' internal messages more effectively.​

• A shift from day-to-day administration to analytics, insights and predictions
• HR expected to deliver value and services
• Greater insight into employee engagement and productivity

TREND 4: HR is adding more value

As HR becomes technology-based, it can help strategically position the business.

• Instead of managing day-to-day administration, HR departments can move into human capital analytics, insight and prediction in order to add value in areas such as employee engagement and workforce planning
• HR can create in-house talent offerings, incentives and educational programs that win acceptance. Just like the marketing arm of a business, they can segment different categories of employees and customise services to them.

TREND 5: HR is winning over the boardroom

HR has become integral to growing top line performance.

• Improved hiring and retention- including predictive recruitment
• Convince with data to influence strategic direction
• Significant impact on productivity, customer experience and cost management

Key considerations for implementing Software as a Service (SaaS) based applications for human capital management (HCM):

Consider your business model

• Constant review of functions and processes to get value SaaS expenditure
• Implement governance structures to review impact of policy and process changes

Don't underestimate complexities

• Effort required to build and maintain complex integrations
• Identification, design and build of custom reports not delivered as standard SaaS reports

Implementation is different

• Be open minded to move at pace
• Design and build is iterative and flexible, testing is adaptive and ongoing
• Changes can be quick and made after implementation

Increase user adoption

• Consider change management approach, doesn't have to be costly
• Drip-feed functionality into an unprepared environment to reduce impact, such as full self-service

Download the full report www.accenture.com/hrsaas