Digital technology has changed every aspect of business. It has become the pivot in today’s corporate world. This doesn’t mean the human element has lost its importance. The HR Function plays an important role in the success of an organisation.
In today’s world, the HR Function too can benefit from automation. ERP systems include human resource management capabilities. Let’s see how advanced HR and payroll systems can aid a business.
Provides an Integrated Database
An ERP system connects databases and provides all information in a single window. For HR, much of the ERP functionality is used in the database category. The software manages the important part of daily tasks of HR. Using the centralised information database, the HR can easily access important information such as Name and IDs of the employees, their pay rates, number of hours they have worked, different benefits each employee has accrued, etc.
Manages Training and Skill Tracking
An ERP system can help the HR to find the right person for a specific job. Some work in an organisation needs to be accomplished by professionals. These advanced systems provide the necessary tools to manage the staff development process. Documentation of training and skills acquired by the employee is an important part in ISO certification. ERP systems can track skills needed for specific job descriptions, monitor employee training history and keep record of expiring certifications.
Ensure Internal and External Compliance
An ERP system helps HR to place functional controls on how the information is accessed and shared across different departments in the organisation. In addition, HR activities like hiring, terms and conditions of employment and termination, are governed by laws. Therefore, these tasks and deliverables can be controlled, such that the company’s compliance requirements are clearly defined.
Encourages Collaboration within Organisation
An ERP enables more collaborative work environment in an organisation. The system enforces timely date entry across all departments and focuses on transactions in real time. Thus, the ERP system allows employees to see and access the most updated information in the system. This helps in effective scheduling of tasks and gives employees visibility in their workload.
Reduces HR Workload through Self Service
Since the HR handles large amounts of information, it becomes very difficult to keep the data updated at all times. An ERP system allows employees to update their own records and HR personnel are therefore not required to enter the information in the database to update the records. The automated recording and data collection facility offered by ERP reduces the workload of the HR Function.