SAAS-based Human Resource Market Trends

Growth Drivers

• Rising Investment by Organizations - SAAS-based HRM offers cost-effective solutions and savings, along with various other opportunities. According to the most recent data published in 2021, about 72% of organizations plan to increase their spending on HR technology. Particularly, in 2023, more than 55% of businesses planned to invest in a hybrid or subscription-based SaaS HR solution[SP1] .
• Increasing Trend of E-Recruiting - E-recruitment is the automated process of finding, recruiting, screening, and employing individuals using internet stages and HR software, which is also a complete solution that handles every aspect of HR, from hiring to retirement. For instance, more than 50% of organizations use human resource management techniques to find, attract and retain new talent.
• Growing Usage in Government Sector- Local government HR departments are switching from complex, paper-based procedures to online ones with GovOS Applications for payroll, HR solutions, and services, performance reviews, and labor management.
• Expanding Healthcare Industry- Healthcare HR software is made to ensure effective management of people and resources, and firms to easily manage personnel information, keep track of certifications and credentials, and effectively manage employee schedules while adhering to labor laws.

Challenges

• Threat of Cyber Intrusion- HR departments frequently deal with chatbots and vulnerabilities in HR software when it comes to data security which have emerged more lately, while others have long been persistent problems. Concerns concerning security increase with the number of SaaS accounts and seats, which is one of the main obstacles to the software as a service model's complete acceptance. Shadow IT, ineffective access control, misconfigurations, insider threats, and compliance issues are a few insider threats that might happen if staff members get access to private information kept in SaaS apps. SaaS security risks may arise from regulatory compliance, which may lead to monetary loss, legal repercussions, and reputational harm to the business.
• Continuous Internet Connectivity is required for the operation of HRM Software 
• Lack of awareness about the benefits of SAAS-based human resource management may limit its adoption