The document discusses the business case and ROI for adopting SaaS HR solutions. It states that companies that adopt HR solutions outperform competitors based on financial benchmarks and have more flexible cost structures, with average annual HR administration costs being over $1k less per employee for those with an HR system. The reasons why companies are buying HR solutions are for employee and manager self-service, talent management automation, HR systems strategy, portal and transaction cost reductions, and workforce optimization.

1. Exhibit: The Business Case for SaaS HR Solutions
Buyers today require almost immediate payback7.
The Business Case & ROI Why companies are buying:
Companies that adopt HR solutions:
1. Outperform the competition based on key comparables 1. Self-Service for employee and
and financial benchmarks8. manger “consumerism” (i.e. access
2. Have more flexible, resource efficient costs structures. to information and tools).
Average annual HR administration expenditures per
employee is greater than $1k for SMBs without a unified 2. People dependant Business Process
HR system versus less than half that for enterprises with Improvements core to operations.
an HRMS (human resource management system).
3. Talent Management Processes and
Automation (for example: Job &
Career Management, or Recruiting &
Onboarding).
4. HR Systems Strategy (HR Analytics,
Social, Global, Mobile).
5. Enterprise Portal and Transaction
Cost Reductions.
6. Workforce Optimization (Job
Management, Contingent Labor,
Labor Costs Management).
7. Upgrade existing solution.
7
The days of software implementations with lofty long-term promises are gone as evidenced by the adoption rates of SaaS solutions.
According to Gartner, 22% percent of global organizations report they are adopting SaaS HRMS. Even higher adoption rates exist for
small and mid-market business.
8
Organizations that choose an ERP with HRMS based talent management approach outperform with as much as 48%8 greater sales
per employee than those choosing a best-of-breed talent management approach. Less than 10%8 of enterprise organizations have
one big suite/vendor and nearly 20%+ are using 2 or more HRO vendors today (single versus multi-function outsourcing).
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