Software as a Service (SaaS) represents a cloud computing service model upheld by a third-party provider. It enables users to subscribe to and access software applications over the internet without the need for local installation or maintenance on their devices or servers. The web-based software has revolutionized various industries by providing convenient, flexible, and efficient solutions with features like any time, anywhere access, automatic updates, and seamless scalability. SaaS integrates employee relationship management, project management, email, and other tools, fundamentally transforming the utilization of software applications with its user-friendly and adaptable approach.
In fact, the SaaS market has expanded so massively that the 2023 State of SaaS Series survey anticipates the average SaaS expenditure per employee to reach nearly $9,600 by the end of 2023, compared to $2,623 per employee in 2021. The graph demonstrates a substantial linear increase. Despite the saturation of the market with numerous SaaS products serving millions of people daily, there is still a catch here. The basic hitch we all tend to forget while getting carried away by the glam of SaaS tools is the essential role of the human touch in any business activity which unfortunately SaaS products fail to add in any form or shape.
One of the fundamental aspects we overlook under the ease of the SaaS tool is employee relationship management. Establishing brand loyalty and retaining employees necessitates trustworthy connections with each individual employee. Frequently, we confuse employee relationships with day-to-day employee service, when actually it’s apples and oranges. While a SaaS tool can handle employee requirements, it falls short of cultivating genuine relationships with the employees. Strong employee relationships require human support, as humans possess unique qualities like empathy, adaptability, and effective communication. Unlike automated systems, humans can comprehend and resolve complex issues, build trust, and handle unpredictable situations.
Human interaction is crucial for personalized engagement, cultural awareness, and obtaining valuable feedback from the employees. A Microsoft report reveals that 97% of worldwide consumers consider customer service pivotal for brand loyalty, while a PwC study indicates that 60% favor human interactions for addressing complex issues. Although technology enhances efficiency, establishing enduring customer relationships demands authentic engagement and individualized attention. In the realm of EOR services, employees represent the primary clientele, underscoring the need to cultivate a credible image and forge personal relationships among them.
What is the power of dedicated human support?
The success of any business, especially in domains demanding emotional intelligence, intricate decision-making, and a profound grasp of human behavior, can be greatly influenced by committed human support.
While SaaS offers the advantage of self-service across various processes, the burden of constantly “doing it yourself” can become overwhelming over time. At a certain point, seeking dedicated guidance becomes essential for making crucial decisions that impact your business.
Examining the advantages and disadvantages of your daily business activities, along with calculating potential alternative actions to make informed decisions, necessitates the essential blend of emotional and logical thinking. This unique combination, crucial for making the right choices, is a capability inherent to the human brain.
Here are several ways in which such support can significantly affect different aspects of your business, leading to a comprehensive and successful business strategy:
- Employee satisfaction and loyalty:
Ensuring employees can engage with genuine individuals who comprehend their requirements and offer personalized help through dedicated human support leads to heightened satisfaction and enhanced loyalty when resolving issues promptly and empathetically. For example: The employees of The Cheesecake Factory are constantly aided with advanced training by dedicated experts with live projects in their hands and have excellent recognition program hosted by the senior officials for every small or big milestone they achieve, where they share their success stories. This gives the employees extra morale to think out of the box and achieve something bigger the next time.
- Problem resolution:
Human support is equipped to address intricate issues demanding critical thinking and problem-solving skills. Interacting directly enhances comprehension of employee concerns, resulting in more effective and personalized solutions.
- Building relationships:
Customized engagements contribute to establishing a connection with employees, nurturing trust, and fostering a sense of connection. The provision of human support enhances a better understanding of employee preferences, facilitating more focused and efficient communication.
Human support excels in adapting to unique or unforeseen situations, swiftly responding to shifts in employee behavior or unforeseen challenges. This flexibility is a distinctive strength that automated systems may not always possess.
- Brand image:
A positive human support experience not only contributes to a favorable brand image but also enhances employee recollection and the likelihood of recommending organizations that excel in delivering excellent human support.
- Handling emotional situations:
Humans are better equipped to handle emotionally charged situations, such as employee frustration or dissatisfaction, by providing empathy and understanding.
- Crisis management:
During crises or emergencies, human support can provide a more nuanced and compassionate response, helping to manage and mitigate potential damage to the brand.
- Advisory role:
In specific sectors, human support plays a pivotal advisory role by providing expertise and guidance that automated systems might not possess.
What are the disadvantages of Saas?
Pressing more on the subject, it is important to address the fact that when you are planning to expand your business globally, approaching a Software as a Service (SaaS) tool to meet the daily requirements of your remote team might be a bane instead of a boon. This happens because SAAS comes with its own share of disadvantages mixed up with the intricacies of the new land. Let’s see the plausible drawbacks you might face with the SAAS approach:
- Limited customization:
SaaS applications are typically designed to be one-size-fits-all, which can limit customization options for specific business needs. Users may find it challenging to tailor the software to meet unique requirements.
- Data security concerns:
Storing sensitive data in the cloud raises security concerns. Especially while expanding your business globally, the risk of data breaches only increases and you may not want to give away all your company’s critical information to a software yet. In fact, 58% of world technology leaders believe that SaaS technology is not capable of addressing all security concerns.
- Subscription costs:
As the majority of SaaS operates on a subscription-based pricing model, the cumulative monthly or yearly subscription expenses may pose a challenge for your recently expanded team.
- Vendor lock-in:
Exploring various SAAS tools is essential before committing to one, ensuring it aligns seamlessly with your employees’ needs. Transitioning between SaaS providers poses challenges in managing data migration complexities and navigating variations in application structures. This situation may result in a form of vendor lock-in, where businesses find themselves reliant on a specific vendor’s ecosystem.
- Compliance concerns:
Depending on the industry, navigating regulatory and compliance concerns tied to cloud-based data storage and processing is imperative. It is pivotal for businesses to ascertain that their chosen SaaS provider aligns with pertinent regulations. The intricacies escalate further when contending with the legal landscape of a newly expanded region. Consequently, grappling with compounded legal complexities is the least desirable scenario when establishing a team in a new location.
- Performance issues:
SaaS performance is heavily influenced by infrastructure and server capabilities. Managing the optimal performance of the SaaS tool consistently becomes challenging with a remote team and diverse infrastructural setups among employees.
What is the impact of dedicated human support in EOR beyond software?
Dedicated human support within the framework of an Employer of Record (EOR) extends beyond mere oversight of employee-related tasks, emphasizing the cultivation of robust employment relationships. An Employer of Record (EOR) assumes the pivotal role of the legal employer for your workforce, overseeing payroll, compliance, and various HR functions on your company’s behalf.
Beyond these essential responsibilities, EOR services introduce a personal touch, injecting flexibility and customization into every service provided. The following enumerates the factors EOR services adeptly manage, surpassing the capabilities of software alone:
- Compliance and legal expertise:
Human support can provide expertise in mitigating complex labor laws, regulations, and compliance requirements in different jurisdictions. This is crucial for ensuring that your company remains compliant with local employment laws and regulations.
- Adaptability and problem-solving:
Dedicated human support can offer a level of adaptability and problem-solving that software alone may lack. Employment situations can be nuanced, and having a knowledgeable human point of contact can be invaluable in addressing unique challenges and finding effective solutions.
- Employee relations:
Managing employee relations requires a human touch. A dedicated support team can handle employee queries, concerns, and issues, fostering a positive relationship between the employer, the Employer Of Record, and the employees. This can contribute to better employee satisfaction and retention.
- Cultural sensitivity:
Understanding and navigating cultural nuances in employment practices is essential, especially when dealing with international workforces. Human support can provide cultural sensitivity, ensuring that HR practices align with local customs and expectations.
- Customization and consultation:
Human support allows for a more personalized and consultative approach. EOR services with dedicated support teams can work closely with your company to understand the specific needs and tailor your services accordingly. This level of customization is often beyond the capabilities of standard software solutions.
- Communication and coordination:
Effective communication and coordination are critical in managing a workforce in a foreign land. Dedicated human support can facilitate communication between your company, the Employer Of Record (EOR), and the employees, ensuring that information is relayed accurately and promptly.
- Employee onboarding and offboarding:
The human touch plays a pivotal role in the success of both onboarding and offboarding processes within an organization. The presence of a dedicated support team is indispensable, as they not only facilitate the smooth integration of new employees but also handle exit procedures with a profound sense of empathy and professionalism. This personal touch fosters a positive work environment, ensuring that individuals feel valued and supported from the moment they join to the moment they depart.
- Handling complex HR situations:
In scenarios marked by disputes, grievances, or intricate HR challenges, the presence of specialized human support becomes pivotal. The inclusion of dedicated professionals is crucial in facilitating mediation and conflict resolution, ensuring a fair and compliant process that upholds organizational standards and fosters a harmonious workplace environment.
- Local guidance:
By leveraging the invaluable assistance of a dedicated human support system, you gain a distinct edge in expanding your network, effortlessly penetrating new markets, and tapping into their wealth of expertise to navigate local trends. This seamless collaboration ensures unhindered progress in scaling your business, as you capitalize on the profound insights and hands-on guidance provided by seasoned professionals.
While software and technology streamline processes, the human element remains indispensable for addressing diverse and unpredictable aspects of employment. With dedicated human support, you can create a comprehensive and effective remote team, ensuring the successful operation of the show. Acknowledging the potential for genuine human errors, it is important to study the track records of every shortlisted Employer Of Record (EOR) meticulously. By thoroughly evaluating the backgrounds of each potential partner, you can mitigate the risk of such errors and make an informed decision when selecting the right Employer Of Record (EOR) for your needs.