ERP Software Solutions For Effective Human Resource Management

ERP Software Solutions For Effective Human Resource Management

ERP Software Solutions: Irrespective of size, every organization is embracing a positive transformation in all aspects. Organizational transformation depends heavily on its workforce or human resources. And employees are valuable assets.

The human resource department plays a vital role in shaping a positive business culture, enhancing employee engagement and productivity. Skilled and vibrant human resources help businesses achieve their goals. Recruiting the best candidates and then, training, motivating and managing them are orchestrated through coordinated various Human Resource Management activities. 

The HR department makes critical business decisions and distributes various roles to employees best suited for each role. It brings all departments together and works towards attaining common business goals. Think of an integrated system that allows you to perform various HR activities and coordinate multiple departments all from a single platform. This is exactly what an ERP system does. ERP software solutions unify different departments in an organization.

ERP software solutions allow you to manage all core business functions in a single system. It helps in fostering effective communication and collaboration among employees and departments. It streamlines the flow of information throughout the entire organization. Tedious, repetitive tasks that usually take hours of manual work can easily be automated with ERP solutions.

ERP was initially built for planning and scheduling. Today it has turned out to be the best solution for enhanced business management and development. 

Human Resource Management in ERP

ERP software solutions standardize and integrate business processes across multiple departments like sales, finance, human resources, inventory, customer relationship management and more.

The HRM module in the ERP system has automated features to handle all HR functions. It allows you to auto-populate fields, defines hierarchies, workflows and view respective departments in a multi-level format. It speeds up and optimizes core functionalities right from recruitment and onboarding to performance appraisal, incentives and many more.

Human Resources Management mainly revolves around the activities framed to recruit the best candidates suitable for the respective position. The HR department also provides the required training and support to consistently improve the skills and abilities of employees. 

General Features Of Human Resource Management Module

  • Automate day-to-day HR tasks
  • Real-time HR management
  • Recruitment management
  • Training management
  • Performance management
  • Timesheet management
  • Attendance management
  • Payroll management
  • Communication tools
  • Employee self-service data access
  • Business trip management
  • Compensation management

Main Benefits And Business Impact

Centralized Database

One of the unique features of ERP is a centralized database. A unified database allows management to store and retrieve employee data with ease. Centralised data speeds up human resources planning, recruitment, selection, placement, training, development, performance appraisal and all related HR functionalities.

An organization’s HR department usually involves data-entry and reporting tasks on a daily basis. ERP software solutions automate such routine tasks and make report generation easier. Employee attendance, leave, work history and performance review can be viewed and analysed from a single platform. I

t helps the management to make accurate and timely decisions. It helps you to easily generate tailored resource plans based on positions, departments or projects while staying within the budget. HRM in ERP also assists the management to easily develop, administer and supervise employee training programs.

Performance management

ERP allows organizations to derive the most accurate information on employees’ commitment and sincerity. The HRM module in ERP offers better visibility over employees. It helps you track employee work hours, late-comings, overtime hours and a lot more, easily. Features like timesheet and employee appraisal aids in this.

Data from the biometric devices are also integrated with the module to capture and store login-logout details accurately. ERP software solutions bridge the gap between employees and management through effective communication. It boosts internal communication and builds trust among employees.

Payroll Management

Calculation of employee pay and other allowances like HRA, DA, TA, insurance, etc. are time-consuming and demand utmost patience. Any manual error can lead to serious complications and confusion including employee dissatisfaction. ERP software solutions can make your payroll management seamless and hassle-free.

Automated HR management saves time spent on such calculations and rules out the possibilities of manual error. It eliminates data redundancy or duplication and helps organizations to efficiently manage employee payments and other benefits.

Recruitment and Selection

Acquiring the right people that fit organizational roles is a key function of the HR department. Recruitment and selection are complex, long-drawn-out processes that typically involve piles of data that often overlap. Precious time can be lost in processing the same application twice, only to realise that you’ve gone over it once already. Communications related to talent acquisition can be automated — send out emails to applicants you have turned out, slated for an interview or lined up for further interactions. Narrow down job descriptions, key assessment areas, requirements for training, etc, based on centralised information. Smoother onboarding can not only improve employee engagement but also, lead to a better collaborative start. And the ERP system’s HRM module can help.

Training and Development

Developing and retaining talent improves the resource pool. Businesses invest a sizable amount of time and money into finding the right talent. And it is important to maintain and improve the quality of the labour pool. Documenting and tracking qualifications, training, and skills acquired by the employees are essential, especially if the company wants to pursue certifications.

The HR department usually charts out regular training events — some for compliance, some for skill or knowledge updation — and specific training to upgrade an employee or improve performance. This training calendar requires planning and coordination for smooth execution. ERP systems can be an efficient assistant charting out training events and sending timely reminders. The HR department can utilise those saved hours on more meaningful value-based tasks. You can also use an ERP system to assess the pre- and post-training performance of employees. 

Overview of other benefits

Human Resource Management module in ERP systems also help businesses in the following ways:

  • HRM in ERP optimizes the entire recruitment process and minimizes the workload on HR personnel. 
  • ERP software solution integrates relevant information allowing organizations to forecast or analyze human resource costs. 
  • Allows management to easily build customized applicant measurement criteria.
  • It can easily be integrated with social media, job ads and other recruitment sites.
  • Enable HR managers to track applicant interview schedules.
  • Automatically identify relevant applications using predefined keywords.
  • Enable HR to send automated communications to job applicants based on their status.
  • It automatically routes documents to hiring managers and sends automated response reminders.
  • Customizable job sourcing reporting.
  • It gathers information from various systems and departments to predict future human resource needs.
  • Help management to plan training schedules for employees. 
  • Improves the performance of the human resource department.
  • Inter-departmental collaboration and access to critical data help managers in making strategic business decisions.

Even though there are multiple factors that lead to business success, the most important one is your workforce or staff. ERP software solutions let you effectively manage your employees and offer them the right information needed to perform their tasks. Successful ERP implementation lets you witness the smooth functioning of your business and profits on the rise.

Effective management of employees is easier said than done. This is where ERP, or more specifically Human Resource modules, can help. It provides an integrated platform to bring employee information and essential HR functions together. Spending less time on administrative tasks translates to higher productivity and improves employee satisfaction. A comprehensive ERP software solution will let you focus on growth and development without struggling to stay on top of HR duties.


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