Significance of HR Module in ERP

The history of ERP dates back to 1960s, when J.I. Case and IBM, together with built an enterprise resource planning software. Initially, the application intended towards catering the needs of supply chain management, later proliferating to planning and scheduling of manufacturing materials. However, today the ERP has turned themselves to be an-all-inclusive database offering significant features to streamline the key business operations. Right from best-of-breed software to integrated management ERP software, the market is flooded with different choices promising ultimate business management. 

However, the success of ERP software implementation solely depends on you. It is your choice that underlines your successful run. Therefore, prior to making an ERP choice, it is advocated that you thoroughly comprehend your business need and then make a choice. Because any afterward change can cost you huge. If you want to manage your employees alongside the other departmental functions such as accounts, sales or CRM, it is advisable that you incorporate an HR Module in your ERP.

HR Module in ERP is one among the aspired and most sought after choice of business today. With increasing changes in the workforce and business processes, there is a rising demand of HR Module in ERP solutions. There is no doubt that the human resource management significance module will proficiently oversee the management of human assets pertaining to both professional as well as personal.  An HR Module in place will surely modern the HR procedures via reengineering present HR forms.

Let us see how.

An HR Software or HR Module is an intersection of human resource management and information technology. Therefore, the HR Module in ERP comes with several features such as Employee Database, Attendance Management, Performance Evaluation, Employee Appraisal, Employee Timesheet for effective management of the human resource. In nutshell, a comprehensive HR Module will have all that set of features that a business aspires for adequate and efficient management of their human resource. 

The prime benefit of having an HR ERP systems is that every employee information is brought under one roof- a unified database. This helps in easy and quick gathering of employee information by the management. From the HR Dashboard, the manager can quickly glance the leaves, running contracts, work progress, pending tasks and much more. Further, the linkage to financial part makes the HR module in ERP all more flexible and rigid. 

Using the application, the management can easily process employee payroll and other employee benefits. Unlike, the traditional manual sorting of leaves and workhours for calculating the pay, the software reengineers everything via automation. The digitalized process thus evades the possibilities of data redundancy, misrepresentation of data and other malice.

Key Benefits of using HR modules

Businesses that have gone for ERP integration especially the HR Module in ERP is more to benefit than explained below:

Free to Manual Undertakings

Via integrating HR Modules in ERP, a large percentage of HR functions are to be automated. Processes starting from employee recruitment, providing onboard training to employees, calculating their payroll and other compensations, engaging and monitoring the employee performance, needless to say managing the employee retirement, everything gets automated via HR module. The end-user need not roll their sleeves up and flip through large paper files digging data. Everything gets streamlined, organized and structured with HR automation, freeing management from manual processing.

Easy sharing and Enhanced collaboration

With all information under one roof, the HR module makes it easy to share information along every stretch of employees. It makes sure that no employee is deprived of real-time alerts and other pertinent information. The same way it endures transparency via better communication, enhancing better collaboration between employees. Data can be easily shared, compiled to insightful reports, brought under a central location making it simpler for teams to work together.

Clearer Picture of HR

It is very well hard to pick up a transient image of your employee resource, particularly with regards to recognizing potential asset setbacks (e.g. workers who are continually late, double-booked vacations and so on). With the help of the HR module or HR software in place, it becomes easy to quickly locate such deficiencies and trigger alerts to evade their possibilities in the future. No matter, what your employee size is. A robust HR software always remains self-reliant and scalar to the growing needs of the business.  

Reduced License Fees

If you get hold of individual software says the best-of-breed software for managing different key operations of your business, it is obviously to rise your license cost. Maintaining individual software for individual business functions not only pays the way for mismanagement of data but also for rising up your expenditure to maintain the same. On the other hand, going for an integrated application with HR Module in ERP, your investments get saved from setting up and maintaining these systems. Here, you need to pay only for a single license fee to cover all your business need. Therefore, the overall expenses get reduced to half, helping you to invest more in the strategic development of the business. Have a look at the following blog to explore more about significance of HRM. 5 Significance of Human Resource Management System