Software as a Service 

(SaaS)

Glossary of HR Terms Software as a Service (SaaS)

What is a SaaS?

Software as a Service (SaaS) is a cloud-based software delivery model where applications are hosted by a provider and accessed by users over the internet. Instead of purchasing and installing software on individual computers or servers, organizations subscribe to SaaS platforms on a pay-as-you-go basis.

Why it matters

SaaS makes HR technology (and business software overall) more scalable, cost-effective, and accessible. It eliminates the need for on-premises infrastructure, reduces IT overhead, and ensures continuous updates and support. For HR specifically, SaaS solutions enable teams to rapidly deploy tools for payroll, recruitment, engagement, and learning without complex installations.

Where it fits in the HR stack

SaaS serves as the delivery model underlying most modern HR tools. HRIS, LMS, ATS (Applicant Tracking Systems), and engagement platforms are typically SaaS-based. This allows HR teams to integrate multiple tools seamlessly into their ecosystem while only paying for what they use.

Common use cases/Examples

  • Deploying an HRIS like BambooHR or Workday without on-site servers.
  • Offering training through SaaS-based LMS platforms like TalentLMS or Docebo.
  • Using SaaS engagement tools such as Culture Amp or Officevibe.
  • Streamlining recruitment through SaaS ATS solutions like Greenhouse or Lever.
  • Scaling HR technology quickly as organizations grow or expand globally.

Examples of companies that use it

  • Startups and SMBs relying on SaaS platforms like Gusto or Zenefits for affordable, scalable HR operations.
  • Large enterprises like Netflix, Airbnb, and Unilever, which depend on SaaS systems such as Workday, ServiceNow, or SuccessFactors to manage global workforces.
  • Remote-first companies that benefit from the flexibility of SaaS tools accessible from anywhere, supporting distributed teams.

FAQ

Traditional software is purchased, installed, and maintained on-premise, while SaaS is subscription-based, cloud-hosted, and accessible via the internet.

Yes. Leading SaaS providers use encryption, compliance certifications (like GDPR, SOC 2, ISO 27001), and strong security protocols. However, data security still depends on provider quality and proper implementation.

Minimal IT support is needed compared to on-premise software. SaaS providers handle updates, security patches, and infrastructure. 

Yes. Most SaaS HR tools offer APIs and integrations, allowing systems like HRIS, ATS, and payroll to share data seamlessly.

Potential drawbacks include ongoing subscription costs, reliance on internet connectivity, and data privacy concerns if not managed carefully.