Human Resources (HR) isn’t usually the first function that comes to mind when you think about ERP, but a smoothly functioning HR module can greatly increase the usefulness, efficiency and profitability of an ERP system.
HR helps manage the people side of the enterprise, meaning everything from hiring to benefits. It usually also includes a self-service feature that allows employees to find out what they need to know about salary, benefits, vacation and other common questions without having someone look up the information for them.
Most full-featured ERP systems now have an HR module to help with all these processes. Often the HR function is a stand-alone module that is optional. When implementing an ERP system, it is worth carefully considering installing the HR function, whether as part of the initial installation or as an add-on later.
Handling the HR function through the ERP system offers several advantages. Notably, it integrates the HR information with the rest of the business. ERP systems are also particularly strong on working with the rest of the business, offering new opportunities for making the business more efficient.
The HR module tracks existing employee data, including personal histories, skills, capabilities, accomplishments and salary. It also keeps track of applicants, retirees, and other people related matters. Like other areas of ERP, it supports standardized processes, in this case for a broad range of HR functions. In doing so, it improves efficiency and recordkeeping and makes the human resource functions easier to control.
This kind of control and recordkeeping is increasingly important as requirements for reports for everything from internal use to regulatory requirements proliferate in the modern business environment.
For example, companies above a certain size are required to track applicant data and whether or not they were actually hired. With ERP this kind of information is easy to access for generating reports and such.
Of course, using the HR module in your ERP system means that HR has easy access to the reporting and analytical tools built into your ERP system. This not only makes it easy to run routine reports but you can use ERP’s analytical tools to understand better what it going on with your employees.
One of the most popular features of the HR function in ERP is self-service. Employees can connect through the web and get information on everything from benefits to policies themselves. This is not only more convenient for the employees, it reduces the workload on the HR people.
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