Role of ERP Software in Human Resource ManagementRole of ERP Software in Human Resource Management https://i0.wp.com/www.noitechnologies.com/wp-content/uploads/Role-of-ERP-in-HRM.png?fit=1920%2C1080&ssl=1 1920 1080 Visvendra Singh https://secure.gravatar.com/avatar/0e675e9b7fca446afd5ff8a5c60343b9?s=96&r=g
The ERP has the capability to meet the needs of an organization related to Human Resource Management. This blog talks about ERP software’s role in HRM with essential features to give you better insights into it.
In today’s world, ERP can be referred to as an integral component that can manage businesses in and out. While a business entity may have various departments and numerous resources to manage, it is certain that it requires an ERP solution that can make management and operations easy in a comprehensive way. Human Resources, an integral part of any organization, also demands robust capabilities to manage and track various aspects related to payroll management, performance, workload, etc.
The ERP as a modern and business-friendly tool can be a great solution to meet all your needs related to managing human resources effectively.
Why There is a Need For ERP in Human Resources Management
Human Resources is seen as one of the prime resources of any business organization. As it is one of the crucial resources to run and manage your business operations effectively, it is important that you manage them well by meeting the demands of both organizations and employees without any gaps. From tracking work schedules to ensuring proper accountability of leaves and salary, there are a lot of things that have to be done under Human Resource Management. In order to manage everything with ease, and gain better trackability and accountability, the ERP can be the desired solution for businesses of all sizes.
Role of ERP in Human Resource Management
The main goal of ERP Software is to optimize and plan the resources well in order to decrease costs and ensure maximum efficiency. Going through the same concept, the ERP Software integrated with Human Resource Management can ensure smooth management and coordination of demand and supply between organization and workforce. From meeting deadlines to ensuring several KPIs in terms of day-to-day operations, the ERP can do a lot of things in areas of Human Resource Management.
When ERP Meets Human Resource Management
The ERP Software for HRM has essential features like database management, operational trackability, performance management, etc., to ensure end-to-end management of human resources comprehensively. Here are various detailed points to help you understand the Role of ERP Software in HRM with key features:
- Workforce Tracking: An organization might have thousands of employees, and it may become difficult for them to manage it all manually. To solve various challenges, there needs to be a centralized system through which the data for all the workforce can be managed dedicatedly and maintained on a regular basis. The ERP can hold such a large amount of data and help businesses keep track of employees in a better way.
- Process Management linked to Human Resource: Since every employee may have a dedicated responsibility linked to Key Result Areas, the ERP Software can evaluate the effectiveness of the process by ensuring effort estimation, time, and various other factors. For example- In a warehouse, an ERP can track how much efficiency is being put by a certain employee in a certain process. While this is just a set of collective data which is analyzed to offer crucial insights, it can really help businesses to accelerate their performance while ensuring time and costs.
- Payroll Management: Salaries being a crucial part of Human Resources Management can be ensured through ERP software as it can keep the active track of leaves applied, incentives, deductions applicable, loans, etc. through a centralized database. ERP can even automate the process of calculating salaries without the requirement of any manual efforts.
- Time Office Management: Many organizations might require employees to follow a dedicated shift cycle. In such cases, the ERP can be integrated well with biometric/attendance systems to keep the time track of each and every employee.
- Performance Management System: This is another key feature that can be utilized well through the use of compiled data stored in the centralized database of ERP Software. Through a proper analysis based on various criteria and key aspects, the ERP Software can also evaluate the performance of human resources.
- Workload & Resource Management: This is quite an interesting feature that can effectively manage human resources. Through workload and resource management, businesses can track project completion rates, overtime, availability, unavailability of human resources, and more. It can also be used to track which resource is working on which project or process.
- Reporting: Reporting is one of the main features of any ERP Software which can help stakeholders know the crucial aspects of business operations and activities. Since it is compiled and generated based on the business requirements, it can also highlight red areas or issues related to human resources. The reporting can be done on-demand or scheduled basis as required by the business or stakeholders.
Cost of ERP Software with HRM Module
The ERP System integrated with Human Resources Management can cost anywhere around 1 lakh to 5 lakh annually. It depends upon the requirements and size of the organization, which may differ in the case of every business. Since there are multiple models like- licensed ERP software, customized software, ERP Suite, etc., the cost may vary on a case-to-case basis.
Looking for ERP Solution for your business needs? Contact NOI Technologies to get an affordable and cost-effective ERP solution.