Role of HRM software in ERP

Role of HRM software in ERP

By now, it is acknowledged that technology has become the greatest asset for Human Resources not only for the present time but also for the future. Things are evolving so rapidly that it has become difficult to keep up with the new developments. In this blog, you will see what is the role of HRM software in ERP, its benefits, and some features. As we know ERP was developed for companies that help in integration and development but here we will compare it with the most disruptive technology called HRM software.

 

Meaning of ERP 

 

ERP is the acronym for Enterprise Resource Planning. It is a software that is specially developed for companies to manage their different business tasks such as Human Resources. ERP has some specific modules that help in dealing with different areas of a business. They particularly work for large companies with extensive management systems such as Human Resources. 

For HR, ERP is used to automate administrative tasks and to speed up all the internal processes that help the team save time and effort. Furthermore, you can also use this tool for payroll, recruitment, management, job offers, and evaluations. This all happens in a single module that as a result makes decision-making easier. 

 

Features of an ERP for HR

 

As we know there are hundreds of tools in the HR department which make its life more easier and HRM is one of them. HRMS stands for Human Resource Management System. This software HR is specially made for computerizing, managing, and automating the HR department’s processes. The features in detail are as follows:

 

Features of an ERP HR Module

 

ERP has a number of modules that are designed to serve different areas of a business. One of the modules HR is responsible for automating the most time-consuming tasks of the department. When you look for an ERP for HR, keep in mind the following features:

 

1-Payroll and Compensation management:

 

 It helps in monitoring all the payrolls, streamlines employees’ salaries, tax calculations, compliance reporting, accurate compensation management, and adjustments that can arise. 

 

2-Time and attendance management:

 

HR module also helps in managing time and attendance and keeps the record. It also tracks employee’s work hours, overtime, and absences. This feature enhances workforce productivity.

 

3-Basic employee database management: 

 

It Stores and manages the personal data of the workforce. It also performs tasks like performance evaluation, streamlining HR processes, and attendance tracking.

 

4-Employee training and development

 

It designs and develops the company’s internal training programs, creates training programs, and ensures staff development, and compliance with training requirements. 

 

5-Reports and analysis: 

 

KPI (key performance indicator) reports are generated for better decision-making in HR. it also helps the business to generate reports, analyze data, and gain insight into different aspects of business operations. 

 

6-Recruitment:

 

It manages all the t Selection processes, publishing job offers, hiring professionals, and ensuring maintenance, and optimization of ERP in an organization. 

HRM software in ERP are cloud-based so you can access them anytime anywhere.

 

Features of an HRMS

 

1- Time and attendance management 

 

It records all employees in and out times and stores this data for four years. HR module also helps in managing time and attendance and keeps the record. It also tracks employee’s work hours, overtime, and absences. This feature enhances workforce productivity.

 

2- Workflows

 

ERP module saves time by automating the tasks. you can avail that time for some productive tasks.  it also automates leave requests, performance reviews, and onboarding. thus it enhances management of personal matters.

 

3- Payroll management 

 

HR module records all the payrolls and sends it to the payroll manager. this is how it keeps all the records. It helps in monitoring all the payrolls, streamlines employees’ salaries, tax calculations, compliance reporting, accurate compensation management, and adjustments that can arise. 

 

4- Employee Portal

 

Employees can access their personal information through HRM software. There is no security for them to access their personal data. 

 

5- Absence and Leave

 

A single channel manages the absence and employee’s leave. This makes HRM efficient.  it also tracks employee leaves and manages requests. thus it ensures compliance with the company’s laws.

 

6- Recruitment and Selection

 

HRM module helps in selecting talented CVs and conducting interviews. It aims to hire professionals and ensure maintenance, and optimization of ERP in an organization. 

 

7- Org charts

 

Organizing and designing the structure to make the internal flows better.  they help in visualizing and streamlining workforce management. these charts also depict the hierarchical structure of an organization and departmental arrangements.

 

8- Performance Evaluation 

 

It aims to design and Implement performance reviews in the company. this feature also helps in assessing job performance and making informed decisions related to promotion and training. 

 

9-Reporting and analysis 

 

HRM generates automatic and configurable reports with authentic information for HR. It also helps the business to generate reports, analyze data, and gain insight into different aspects of business operations. 

 

10- Workplace survey 

 

It Sends a questionnaire automatically to check the employee’s remarks. through this, you can gather feedback and can help the team in making informed decisions. it increases employee satisfaction. 

 

ERP vs HRMS: Final Words

 

There is a significant difference between ERP and HRMS which you can see below

 

1- ERP is specially designed for business management while HRMS is designed for the Human Resource department.

 

2- HRMS has the features that ERP lacks such as HRMS covering all the day-to-day processes in people management, saving time, improving efficiency, and making the company better.

 

3-  HRM software in ERP is the most efficient module that serves Human Resource development goals. So choosing HRM software in ERP can be a super choice for you. 

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