They have other responsibilities, but the main idea is HR manages employees.
Proper employee management and other HR processes must be done right to ensure the business runs smoothly. Truly, this can be challenging, and that's where ERP comes in. Enterprise Resources Planning (ERP) software facilitates business management by making these responsibilities easier and less time-consuming. Here are six ways that ERP supports HR processes and helps the department as a whole:
1. Provides Centralized Database
A centralized system through which an organization's data can be managed and maintained regularly is an essential requirement of a Human Resource Department. It might be difficult for a company with thousands of employees to manage its database regularly. An ERP system connects databases and provides all information in a single view. It helps to have unified data stored in a centralized database, allowing easy management. It helps to easily retrieve every employee's data, such as their name, code, attendance, work history, performance review, and other important information. This feature enables the company to make timely decisions and ensure good organization.
2. Fast-tracks Payroll Management
Employee payroll management is an essential aspect of an organization, regardless of the number of employees. Calculating each employee's pay and other benefits, i.e., health, insurance, loan, etc., can be very stressful and time-consuming. Any error made can cause massive damage to the organization. ERP software, however, makes this process easy and stress-free. It helps to keep an active track of payments, incentives, loans, insurance, and deductions where applicable. It even automates the process of calculating salaries without the requirement of any manual effort.
3. Improves Reporting
The Role-based reporting feature of ERP software helps an organization take note of crucial aspects of a business operation. ERP software is a significant feature as it is designed based on business requirements. It can be designed to highlight area regarding human resource that needs attention or improvement. ERP can create a custom report that'll help with Intelligent decision-making. The Role-Based reporting feature of ERP software streamlines the process by generating a report with the information needed for each role in an organization. It provides the exact information needed without wasting time.
4. Seamless Recruitment Process
ERP software is a very useful tool in an organization's recruitment process. Organizations must be ready to invest in the HR Department to have an efficient recruitment system to hire efficient hands. Recruitment can be a very long and stressful process that requires relationship-building with clients and candidates. Making use of ERP software, like Katana, makes the process easy and seamless. It can also be programmed to help sort resumes and coordinate interviews. ERP software can also help avoid bias through programmed pre-screening by filtering with keywords.
5. Workload and Resource Management
ERP helps reduce the HR workload through self-service. Through workload and Resource Management, organizations can regularly monitor project progress, completion rates, overtime, availability and unavailability of human resources. It can also be used to periodically monitor the resources used for a project and the processes involved. Additionally, ERP software provides employee performance feedback and helps track the stages of a company's progress in terms of work. Certain ERP features like Employee appraisal and Timesheets help get accurate information on employees' commitment and sincerity.
The HR Department is required to handle large amounts of information, which might not be easy to update regularly. The ERP system, however, helps this process much easier with its auto-recording feature. Employees can update their data online without submitting paperwork through these features. Think of the ERP software as a catalyst for the HR workload fulfillment.
6. Internal and External Compliance
An ERP system enables the HR Department to easily access important information when an employee leaves an organization. This feature helps to regulate how this information is shared and accessed across several departments. Managing human resources is also part of complying with a company's development plans. An ERP system can help perform background screening, preventing ineffective hiring of employees that can slow down an organization's workflow. This prevents the waste of money and time.
An ERP system ensures external compliance in the sense that, while recruiting, it helps track applicants and their backgrounds. To ensure that an organization supports equal opportunities as the government, the HR Department can easily track down necessary information needed for the recruitment process.
ERP systems help organizations with their HR Department's responsibilities, from recruiting employees to appraising employee performances to deciding compensations and providing benefits, and ensuring the safety of staff in an organization. All-in-all, implementing ERP in HR management can improve the organization's success rate and eliminate the stress of tedious HR tasks.