White Label HR Software: What is It?

White Label HR Software Allows Businesses to Add New SaaS Solutions Without Developing Them From Scratch

White labeling is a term used to describe the practice of rebranding a product or service produced by one company as if another company created it. White label HR software is HR software purchased by a business and branded as a proprietary solution to help said business expand its human resource functionalities and offerings. Companies that enter into a white label partnership resell the white label software as their own or use it internally to boost their employer brand.

This blog aims to let you know what white label HR software is and how it benefits those in the HRO and HR tech spaces. 

Table of Contents

• Why White Labeling is on the Rise
• Why Do Businesses White Label HR Software? 
• The Benefits of White Label HR Software
• Private Labeling Goes a Step Beyond White Labeling
• The Ultimate Guide to Establishing a White Label Partnership

Why White Labeling SaaS Solutions is On the Rise

White labeling is incredibly popular—59% of businesses outsource in some capacity. It often solves the build vs. buy debate many companies consider when adding new features to their vertical SaaS solutions.

Experts predicted a 10-year growth spur, extending through 2025 for SaaS outsourcing due to how reliant today’s businesses are on SaaS solutions—99% of businesses utilize SaaS solutions, and 80% of companies run completely on SaaS applications.

Why do Businesses White Label HR Software?

There are several benefits to white labeling in the SaaS industry. White labeling allows companies to offer their customers a broader range of products and services without investing in developing and maintaining those products. This is especially helpful for smaller companies or startups who need to expand without sacrificing core competencies or larger organizations looking to get acquired or out-compete competitors. 

Today’s SaaS vendors and HR solutions must keep pace with customer demands. Today’s customers expect their white label SaaS solutions to evolve constantly, consistently adding new features and functionalities. They also don’t want to jump from app to app (called app fatigue)  and are increasingly looking for all-in-one solutions. The result? More than 80% of today’s tech organizations are moving quickly on new development initiatives designed to make them more innovative, resilient, and competitive.  

Additional reasons companies might white label HR software include the following:

• Incorporating a new value-add to complement existing solutions. 
  
• Providing a new service while maintaining focus on core competencies. 
  
• Immediate access to fully functioning, fully supported new features and enhancements. 
  
• White label solutions enhance and strengthen a brand since it’s presented as a proprietary enhancement (rather than partnering or integrating new solutions). 
  
• HR tech is in high demand and could help businesses corner existing markets, expand into new markets, and stand out from competitors.

White labeling is a valuable strategy for companies looking to offer their customers a broader range of products and services without investing in developing and maintaining those products themselves. 

The Demand for HR Software Has Never Been Stronger

U.S. employers spend over $5 trillion annually on HR software, including (but not limited to) payroll, benefits, learning management, onboarding, recruiting, and employee well-being solutions. People are the cornerstone of every business, and forward-thinking companies are looking to put more time, resources, and strategy into their HR initiatives.

The 2022 HRIS Software Report found that businesses purchase HR software to be more agile and gain greater functionality. White labeling HR software gives SaaS vendors the ability to quickly and efficiently offer solutions that cover the full breadth of the HR cycle, making them more competitive and satisfying that customer need for broader, all-encompassing functionality.

The Benefits of White Labeling HR Software

In addition to remaining competitive and helping expand functionalities, white labeling HR software can help businesses increase revenue, stay flexible, retain customers, and showcase industry expertise. 

Increase Revenue

Every new solution a SaaS provider adds to their platform increases customer value. A white label solution branded as a SaaS provider’s proprietary software provides a new value add for potential customers and new upselling opportunities for current customers, vital since monetization is 4x more efficient than acquisition and 2x more efficient than retention at improving overall revenue growth. 

Stay Flexible

The Global Software Outsourcing Trends and Rates Guide says, “Software development outsourcing ultimately became a required consideration or a strategic necessity to help businesses to respond to sudden business shocks effectively and adapt for long-term resiliency.”

Today’s SaaS vendors must be agile, flexible, and ready to adapt to shifts in workplace trends. White labeling enables these vendors to quickly and efficiently add new features and functionalities to meet the evolving needs of their customers.

Better Customer Retention

A McKinsey SaaS report states, “SaaS businesses that aim to achieve higher growth put as much attention into caring for existing customers as they do into acquiring new ones, investing in specific post-sales constructs to increase cross-sell, upsell, and retention and sourcing the right talent, tools, and analytics. These efforts, combined with strong pricing and product support, result in median net retention rates (NRR) of 120 percent or more—which means these businesses can deliver 20 percent growth every year without adding a single new customer.”
White labeling helps add new solutions and keep current customers happy. It makes your SaaS product stickier, reducing churn and increasing cross/upsell opportunities.

Imagine if a key customer asks for a new feature you don’t have the expertise or bandwidth to address. White labeling is a great way to deliver that feature, impressing your most important customer and showcasing how customer-centric you are as a company.

Showcasing Industry Expertise

While HR competencies are a universal business need, and thus, HR solutions are needed across industries, there are, say, crucial differences between hiring hourly restaurant employees, salaried engineers, and blue-collar manufacturing employees, just as onboarding delivery drivers vs. teachers will be two distinct experiences. Companies that specifically serve distinct industries—franchises and vertical SaaS providers come to mind—can further cement themselves as industry experts by specializing in the HR functionalities for said industries. 

Private Labeling Can Take White Labeling a Step Further

As mentioned above, here at HiringThing, we’re the creators of a private label applicant tracking system (ATS)—hiring software used to automate, streamline, and optimize recruiting—that many SaaS companies white label to expand their solutions, drive revenue, and stay competitive. 

Private labeling is a premier form of white labeling that adds customizations alongside that all-important branding. While the two modalities are often used interchangeably (and white labeling is more prominent), customizations are the fundamental difference—all private label developers can be considered white labels, but not all white labels can be considered private labels. In the case of our ATS, for example, workflows, integration add-ons, and functionalities can be customized so that our partners can ensure our ATS meets the needs of their customers and industries.

The Ultimate Guide to Establishing a White Label Partnership 

Regardless of the modality you choose, white and private labeling tech solutions are something we’re incredibly passionate about here at HiringThing. While they are great ways to make your SaaS more competitive, finding the right partner is key. That’s why we created The Ultimate Guide to Creating a Private Label SaaS Partnership (which is also 100% applicable to white label partnerships).

About HiringThing

HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the HR platform empowers anyone, anywhere to build their dream team.