Which of the following is a disadvantage of web based benefits administration?

Software as a Service, also known as SaaS or on-demand software, is a way of delivering software applications to the end-user over the internet. SaaS can provide great advantages for most businesses, primarily in costs and flexibility. However, the disadvantages of SaaS (such as lack of control) are considerable and should not be ignored.

What is Software as a Service (SaaS)?

SaaS is a software licensing and delivery model in which software is:

• licensed on a subscription basis - usually monthly or annually
• centrally hosted in the cloud 
• accessed via a browser over an internet connection

SaaS is an alternative to traditional on-premise software installations. It has become a common method of delivering many business applications, including:

• office and communication software
• payroll and accounting programs
• customer relationship management software
• HR management software
• enterprise resource planning programs
• corporate performance management suites
• mobile applications

SaaS advantages

SaaS offers many potential advantages over the traditional models of business software installation, including:

• Lower up-front cost - SaaS is generally subscription-based and has no up-front licence fees resulting in lower initial costs. The SaaS provider manages the IT infrastructure that is running the software, which brings down fees for hardware and software maintenance.
• Quick set up and deployment - SaaS application is already installed and configured in the cloud. This minimises common delays resulting from often lengthy traditional software deployment.
• Easy upgrades - The SaaS providers deal with hardware and software updates, deploying upgrades centrally to the hosted applications and removing this workload and responsibility from you.
• Accessibility - All you need to access a SaaS application is a browser and an internet connection. This is generally available on a wide range of devices and from anywhere in the world, making SaaS more accessible than the traditional business software installation.
• Scalability - SaaS providers generally offer many subscription options and flexibility to change subscriptions as and when needed, eg when your business grows, or more users need to access the service.

SaaS, and more widely cloud computing, can help you make the most of a limited IT budget while giving you access to the latest technology and professional support. However, you should consider some potential disadvantages before making a final decision.

Disadvantages of SaaS

SaaS model sometimes has certain shortcomings, including:

• Lack of control - in-house software application gives businesses a higher degree of control than hosted solutions where control resides with a third party. Typically everyone has to use the latest version of the software application and cannot defer upgrades or changes in the features.
• Security and data concerns - access management and the privacy of sensitive information is a major consideration around cloud and hosted services.
• Limited range of applications - while SaaS is becoming more popular, there are still many applications that don't offer a hosted platform.
• Connectivity requirement - since the SaaS model is based on web delivery, if your internet service fails, you will lose access to your software or data
• Performance - SaaS may run at somewhat slower speeds than on-premise client or server applications, so it's worth keeping performance in mind your software isn't hosted on a local machine.

For more information, see Software as a Service.

HR technology supports companies in performing important tasks in the areas of scheduling, performance tracking, recruitment and payroll. If your company needs them, you have two main options: You can install conventional, computer-based applications on site or access web-based Software-as-a-Service (SaaS) HR software through your browser.

Many companies have moved to web-based HR systems in recent years. Well-known companies such as Equifax, Twitter and Hewlett-Packard use these HR software solutions, but many small companies are also enthusiastic about them.

Despite their popularity, it is crucial to consider both the advantages and disadvantages of web-based HR software.

Advantages of web-based HR software

Immediate availability

Once your company has signed up and paid for a Web-based solution, your HR professionals can start using it immediately. They don't have to wait a long time to download large files or perform installations. If a computer already has a compatible web browser, you don't need to install any new applications to get your web-based HRIS management software up and running.

Another benefit of having web-based HR software available immediately, in addition to the ability to use it immediately, is the avoidance of a large-scale implementation project. As mentioned above, getting many of these platforms up and running is as easy as running the program on a browser. Conversely, an on-site system usually requires extensive IT work to install the software, often together with infrastructure preparation in advance.

Easy accessibility

You can use the web-based technology on a laptop anywhere with an adequate internet connection. Some providers also offer smartphone or tablet access. The system stores all your personnel information on a central server, so that your data is always available. As a result, there is no need to copy files or applications from one computer to another.

Most of today's web-based HRIS systems offer employee self-service, i.e. your employees can log in to view their information. This helps keep your employees busy by allowing them to easily track their time and attendance, vacation days, payments, etc. And an added benefit of employee self-service is that it streamlines your HR processes. Instead of sending an email requesting time off, they can request it with a few clicks in your web-based HR management software. Once this request is received, your HR managers only need to click to accept or reject it. If accepted, it is automatically saved in the employee database, saving them valuable time while keeping an up-to-date record of the leave.

Regular backups

Most developers of cloud software regularly back up all your employee and HR data stored in their HR systems. You are unlikely to suffer significant data loss if a provider's server goes down. Similarly, no information is lost if an office computer's hard drive stops working. An employee can immediately switch to another computer and continue working. This is especially helpful for small businesses that don't have the time or resources to perform frequent backups, putting their data at risk.

The data stored in a web-based HR management system (and in fact in any HRMS) can be among the most sensitive and regularly changing data in your organization. Employees' personal data must be properly secured and stored. And because addresses, phone numbers and other contact information can change so often, it is important that this data is backed up regularly. Regular backups keep your employees' data safe and up to date with any changes, and ultimately help transfer that data between systems.

Automatic Updates

Web-based programs automatically stay up-to-date. There is no need to manually download or install updates. This increases reliability and saves time and effort. By updating web-based HR systems on their own, your IT department no longer needs to take on the task of updating software every time it's needed, so they can spend their time on other tasks. In addition, because most of these platforms perform updates in the background or when the system is not in use, you can avoid the inconvenience of having the software down during the workday.

Automatic updates also help your company comply with new work regulations. Since the system is connected to the Internet, it will be constantly informed about changing laws, tax rates and other HR-related legislation and will be able to keep your processes in line with it while running. The system thus automates both the task of being informed about regulations and the task of complying with them. This reduces the possibility of human error in terms of compliance, saving money, effort and possible legal action.

New features

If you want the latest HR management features every year, you should use web-based HR software. However, for on-premise systems, the frequency with which you receive updates depends on your contact person. You may not receive any free updates at all and may have to pay for each upgrade to the software. However, for web-based systems, your monthly subscription fee includes access to all the latest updates as they become available. So, if you need this new feature for benefits management, benefits administration or payroll, the easiest way is to use web-based HR software.

Web-based systems also reduce labor costs because your employees don't have to waste time installing or maintaining additional updates. Consistent updates also reduce the risk of your HR system becoming obsolete. An HR system that is constantly updated continuously contains all the functionality you need and provides a comprehensive platform. Using web-based HR software that regularly adds new features helps your company avoid implementing additional systems, such as a separate time and attendance tool or HR management software.

Globally compatible

Web-based human resources management software typically provides a better solution for companies with locations in multiple countries. Most programs allow users to choose one of several languages, as well as the ability to translate documents into another language when communicating with global employees. Various currency options provide the ability to issue compensation to international employees. These systems also centralize your employee data, making it easily accessible from offices around the world.

By automatically updating your HR software, your system also remains globally compatible as it takes into account both global regulations and local measures. This is important in order to keep up with international labor laws and to cope with the sometimes difficult task of calculating taxes when supervising offices in different countries.

Disadvantages of web-based HR software
Increased risk
One disadvantage of online file storage and global access is that it increases the risk of data breaches by external parties. All your personal data must be routed through the Internet before it reaches a web-based server. Although security software and encryption minimize the risk, it is not impossible for hackers to intercept your confidential data. However, on-site systems carry their own risks, including data loss due to irregular backups and theft by internal employees.

Although one advantage of implementing web-based HR software is the minimal need for infrastructure development (compared to implementing on-premise solutions), security is an area you may want to build before considering a web-based HRMS.

Dependence on the Internet
Web-based solutions make your company more dependent on the Internet. When downtime occurs, your HR employees lose the ability to access data and perform common HR tasks. This disadvantage causes more problems for companies in remote regions or areas with frequent storms.

Unexpected changes

Web-based HRIS systems have the potential to change in undesirable ways. For example, the provider might increase its subscription fee or require a new browser that requires hardware upgrades.

However, your company can purchase the current edition of a Web-based system on a permanent basis through a one-time payment, making the costs more predictable. This software remains the same unless you decide to replace or upgrade it.

Integration
Some companies find it difficult to integrate web-based human resource management software with other business applications. This typically happens when they use cloud software from multiple vendors or continue to run certain computer-based programs. It's important to evaluate the compatibility of your different systems before trying to use them all together.

Choosing a comprehensive system that includes all the features you need in an HRMS may be one way to avoid difficult integration attempts later. Of course, there is still the possibility that your company's needs may change after the software is implemented and integrations may become necessary. Either way, it is important to evaluate your current and planned needs before choosing an HR software vendor.

Does web-based HR software pay off?
The use of online HR systems certainly has several advantages and disadvantages. However, when an on-premise system and a web-based solution offer equivalent functionality, the web-based system generally offers the most benefits. It offers much more flexibility and convenience, not to mention robust HR management that keeps pace with the latest features.

Nevertheless, traditional on-premise systems still offer a better choice for companies with unreliable Internet connections. They also give companies more control over HR data and software configuration.

Ultimately, the decision depends on what your business needs. If you have a reliable Internet connection and need the latest features, we recommend using a web-based solution. However, if you need to keep your data in-house and integrate the platform with existing on-premise systems, choose on-premise HR software.

Move your HR processes to the cloud with IceHrm

Nearly 50% of organizations have at least one major HR process in the web. Web-based HR software, such as IceHrm, helps organizations deploy a customizable HR software solution that fits their needs without having to worry about developing an entirely new solution.

Moving their HR processes using IceHrm will help organizations reduce the costs associated with implementation, maintenance and training. Its cloud-based nature makes it flexible for organizations to expand with their growing business needs. Pre-defined HR modules that are designed based on industry best practices give you an edge.

Don't just take our word for it, try IceHrm with a free demonstration and see how web-based services can change the way you work!

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