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A Strategy for Increased Competitiveness of Your SaaS Software for Human Resources

Editor’s note: In this article, Boris highlights key focus points for you to increase the competitiveness of your SaaS HR software in the market, such as intuitive UI, an optimal set of features, integration-friendliness, and the use of smart technology. Feel free to learn more about our approach to developing SaaS software that allows our clients to gain a competitive advantage.

Competitive SaaS HR Software

The HR software market, with the increasingly growing proportion of cloud HR solutions, is expected to reach $30.55 billion by 2026. No wonder you see an opportunity to try and win your share of the SaaS HR software market. At the same time, the existing SaaS HR vendors already face competition, so you may feel uneasy about entering this market. Yet, there’s no time to be discouraged as I’m sure that this mature competition can be challenged successfully.

At ScienceSoft, we have a rich history of projects on developing SaaS software as well as self-hosted solutions for human resources. In the article, I’ll use this experience to answer the question: How can you get a competitive advantage over established SaaS HR vendors?

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A winning strategy

When helping companies develop their SaaS product, we at ScienceSoft always advise them to innovate with advanced technologies, carefully decide on the core product functionality and not forget to wrap it all in attractive UI and intuitive UX. Thus, to compete effectively with other SaaS HR vendors, I suggest building a winning strategy using two main blocks: a SaaS HR product’s functionality and its look and feel.

Look and feel

According to ScienceSoft’s experience in developing human resources software, expectations of end customers towards UX and UI of HR software are very high: they want an HR system to look attractive, be intuitive and work in a logical flow. I’d like to point out that for SaaS HR software these requirements are crucial too as thought-out look and feel serves not for entertaining users, indeed. The convenience of use helps HR employees reduce the time spent on their tasks and, as a result, cut operational expenses. And for you as a SaaS HR software vendor, it means higher chances for customer retention.

If you want to succeed in achieving this goal, I recommend you to carefully elaborate UI and UX of your SaaS HR software. You should involve a team of UX specialists, business analysts and web designers for conducting thorough UX research. The team should analyze the target audience of your SaaS software for human resources, create prototypes of potential users (personas), usage scenarios and user journey maps. Also, don’t neglect the importance of user advocacy in UX design that was well described by my colleague Valeriia Syrokvash. After that, you can create a UI prototype of your SaaS HR product to see its functionality and logic in action, which allows detecting usability and performance issues and make necessary improvements before proceeding to development.


I recommend you to focus on the following points when planning out your cloud HR system:

  • Feature optimization. Based on ScienceSoft’s projects on developing HR software, I can name several must-have features for your cloud-based solution: applicant tracking, employee self-service, performance management, talent management, and automated forms. And don’t forget to spice your set with social features, a popular trend in HR software. For example, in one of ScienceSoft’s projects, my colleagues created a robust HR portal with a good balance between HR-specific features like staff directory and social features like classifieds, discounts and social media integration.
    To try out and further tune the defined feature set, I advise you to start with developing a minimum viable product (MVP). You can explore the benefits of MVP development in more detail in the article by my colleague Anastasia Yaskevich. For your SaaS HR MVP to win customers easier, it should contain HR features that your target audience finds most wanted and which are not offered for free by your competitors.
  • Innovation. The growing use of advanced technology is one of the hottest trends in HR software development. Indeed, 55% of HR managers see evidence of AI becoming a regular part of HR within the next five years. So, I strongly recommend adding RPA, AI and predictive analytics to your SaaS HR product to attract a wide range of customers with the opportunity to make better use of their HR data. Thus, intelligent analysis of user activity and employee feedback allows getting insights about employee satisfaction, efficiency of team collaboration as well as predicts and prevents employee turnover. As for RPA, it allows automating routine processes of human resource management like applicant screening and matching and other administrative tasks. For example, my colleagues developed a vacation chatbot that facilitated vacation management and took off the load from the customer’s HR team: the chatbot allowed employees to check available days, book and get their vacations approved quickly and easily.
  • Integration-friendliness. You should make your cloud HR system flexible enough to easily integrate with other popular corporate software (payroll, applicant tracking, workforce management, learning management systems, etc.) and ensure interoperability of integrated systems. For example, in one of our projects, we were required to integrate an HR management system with a certification module that allowed creating, assigning tests to specific users, and tracking their status and test results. In another project, we integrated an HR tool with a document management system to fully automate the HR documentation lifecycle.

Time to challenge your SaaS HR rivals!

I’ve described the strategy to increase the competitive strength of your SaaS HR system, which is unlikely to entail extensive development and implementation costs. Going SaaS, you can avoid large infrastructure investments and don’t need to pay much for cloud storage. As for enhancing your product with advanced technology, AI-based features can be developed on open-source and highly functional frameworks. Still, in case you find it problematic to define an optimal feature set for your SaaS HR system, make your solution integration-friendly or equip it with smart technology, you are welcome to reach out to ScienceSoft’s experts for assistance.

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