Your personnel are a critical component of your business’s resources, contributing significantly to your success. Therefore, integrating HR activities into your enterprise resource planning ERP solution is vital to successful resource management. What is the importance of HR in ERP?
What is HR?
The human resources department or team, commonly referred to as HR, is the arm of your business responsible for overseeing employee life, development and so much more. This team often handles recruitment, training, placements, maintenance of skills, as well as onboarding and exiting personnel across the business. Therefore, HR is responsible for ensuring that:
- There are adequate people resources in each department
- Ethical management of redundancies
- All personnel are able to work comfortably and efficiently
- All personnel have fair and conducive work environments
- Management and escalation of disciplinaries and ensuring issues are handled properly
- Salaries are paid on time
- Shifts are fairly distributed
- Employees are onboarded, promoted, redeployed, transferred, exited, or otherwise handled appropriately
- Involved in supporting managers build team morale, support mental health, and teams are trained to assist any wellness concerns as they occur
Since running any business requires efficient management of all resources, both people or otherwise, it’s a wise and logical move to integrate human resources into your ERP solution. Let us look at some of the ways such an integration works.
How ERP systems streamline HR management
ERP software introduces many benefits to your operations, particularly your human resources by giving you the tools to:
Centralised your database
Your HR team no longer needs to file paperwork for every personnel issue, as all relevant information is available within your ERP system’s database. You can pull information about an employee, department, or entire workforce with a few clicks. Such ease of controlled information access enables better human resource planning and situation management.
Enterprise resource planning systems will allow you to set up a screen to analyse your overall business performance, its objectives and help determine how many employees you need in each department, or specific to a project. The system gives you the place to store details of the skills needed for each job and build in workflows to guide HR recruitment processes. Additionally, the system can monitor your onboarding processes and employee performance. Such information is useful and can be used to inform future recruitment exercises.
Training and development
An ERP system can give you the platform to customise training for new employees according to your business’s specific needs. By analysing the performance of previous and existing employees, the system can point out areas that need the most attention with regard to training and development. With an ERP system, you’ll make career development better for all employees, as you’ll monitor their progress and performance right from the start.
ERP software can help you to log employee work hours, including overtime, to facilitate payroll preparation. In addition, the system helps you to generate balanced shift schedules for all personnel, factoring in leave and holidays, sickness and other special occasions. All changes to shifts or work-related events can be logged to ensure fair compensation.
ERP systems also offer you a place to store processes and information that evidence compliance with industry compliances or government directives and regulations. In addition, the system can be configured to set up notifications for when they are due to expire and require validation or logging of HR related documentation such as work permits, residential permits, labour visas and more.
Human resource management tools are a vital asset for your business, ensuring you extract the most from them if they have the potential to speed up the process, reduce paper files and save time. An ERP system ensures you do so in the fairest, most efficient, and organised, manner.
If you have a need for HR management tools, WinMan ERP with built-in tools could be the right solution for your needs.
Get in touch with us today to see how we can support your business.