How many SaaS subscriptions are businesses currently juggling? Data shows that the average SME uses over 200 software applications to run its business.
Research by all-in-one recruitment, HR software, payroll & benefits platform Employment Hero discovered that most companies use 4 to 7 different systems just to manage employment. When the price of all of these systems is added up, the true cost of SaaS is overwhelming.
Kevin Fitzgerald, UK MD of Employment Hero, explains: “The traditional SaaS model was celebrated for flexibility and scalability. Ten years ago, that’s exactly what the industry needed. But now it’s showing its limitations and UK SMEs are increasingly burdened by fragmented systems, multiple vendor management, rising costs and integration challenges.”
So, what’s the alternative? Across industries, there is a greater demand for consolidation. Ecommerce stores are becoming marketplaces. Fitness apps are becoming wellness hubs. Banks are becoming fintech super apps. Yet employment remains fragmented.
“In 2024, when we’re more connected than ever, it feels wrong that employment - the backbone of our economy - is so disjointed,” says Fitzgerald. With the next wave of compliance and legal changes on the horizon, ensuring seamless communication between your employment departments isn’t just a nice to have, it’s a must.
The end of silos
Historically, business functions existed in silos, with separate teams owning their process and purchasing software. This fragmentation creates an administrative headache from manually inputting data, constantly managing software updates and the pressure of remembering multiple passwords. Failing to integrate processes also leads to data inconsistencies, which can increase security risks.
But the most concerning byproduct of separate functions is the potential legal risk. “SMEs are anxious about hiring. They are worried about doing something wrong and potentially incurring legal costs. This is disastrous for the UK economy so we should be doing everything in our power to make managing employment easy,” says Fitzgerald.
The future of AI
AI is revolutionising the way people live and we’re beginning to see its impact across HR functions. But AI is only as powerful as the data it’s given. To truly harness its potential, every stage of the employment journey must be connected.
While automation has streamlined repetitive payroll tasks, the real impact of AI is just beginning to take shape. “The AI we’re developing at Employment Hero goes beyond automating complex pay runs; it creates a fully integrated HR and payroll ecosystem,” Fitzgerald explains.
Every stage of the employment journey must be connected
Currently, manual updates are required when there are changes in an employee’s HR file, such as a pay rise, which can lead to errors. By connecting HR and payroll, these errors are eliminated. “The entire process becomes automated, enhancing both accuracy and efficiency,” he adds.
“Our AI-powered talent matching tool, SmartMatch, redefines recruitment. It instantly connects employers with job seekers, reducing time to hire from weeks to days or even hours. No more sifting through endless CVs; accurate matches are made in seconds, meaning candidates find jobs faster and employers hire the right talent easily.”
AI can free up time for employees to focus on value-adding projects. Employment Hero has built an AI-powered chatbot, Hero AI, which has the ability to answer any compliance and employment related questions employees may have.
“It’s like a personalised Chat GPT, designed specifically for your business. Ask any question and the technology will scan all of your employment documentation to provide a precise, accurate answer. This is a game changer for HR managers who must remain compliant,” says Fitzgerald.
The world’s first Employment OS
Employment Hero provides a fully consolidated, AI-powered approach to employment. “Our technology goes beyond the traditional boundaries of SaaS to pioneer a new category: the world’s first Employment Operating System (OS). Within the next decade, every software provider in our industry will shift towards this approach - we’re just leading the way.”
This transition will revolutionise employment, making the lives of SMEs and HR professionals easier. Businesses who want to stay ahead of the curve should take note. “It’s time to take off the rose-tinted glasses; this is the end of SaaS. The future is Employment OS.”
For more information please visit www.employmenthero.co.uk
