Benefits of Having the HR/Payroll in the ERP

What is HR Management?

The Human Resources or HR department deals with managing individuals within an organization. Its primary role is to organize employee hiring and management, resolve issues, departmental assignments, collaborations, salary generation, performance monitoring, allowances, and raises.

What is Payroll Management?

Payroll management deals with balancing and integrating payroll data, deposits, report generation, wage generation, deductions, and employee records.

ERP integration of HR and Payroll management consolidates all employee-related data and helps provide error-free details of each employee in an organization.

Benefits of Integrating ERP for Payroll Management

ERP integration has come as a boon for HR professionals and organizations worldwide. But to understand the benefits of this, you need to look closer.

Below is a list of advantages of using ERP for HR and payroll management:

Enhances Payroll Management and Saves Time

A business spends a lot of time in payroll management as it is one of the most challenging segments. ERP integration makes this easier, saves time, and eradicates errors that an employee may commit.

Employee management software can help a company with compliance issues, overtime, and labor costs and help the company make better decisions in a fraction of the time. Thus, ERP integration gives employees the time to deal with other, more critical tasks.

Improves Recruitment Process

An effective ERP can make the whole recruitment process streamlined and simple. Attracting the best talent is easier than ever, as you can directly integrate with social media sites and job portals. The software can also help with screening, interviews, and the onboarding process.

Reduces Paperwork

ERPs can reduce paperwork by standardizing most processes such as employment history, personal information, certifications, and education and compensation information. It also saves a lot of time as it keeps all the data in one place and keeps it safe as all the data is encrypted.

Automation

Tax tables and superannuation rates change every year, and it can get challenging to keep track of it all. Still, if you have payroll software, it can automatically update its setting to keep complying with requirements. There is also a lot of time saved during wage disbursement as it is all done electronically automatically.

Planning Manpower Requirements

ERPs help top and middle management and various departments of an organization register their staffing requirements. It can then verify the request against resources' availability and confirm whether staffing is required. When approved, a staffing request is automatically raised and sent for approval to the hierarchy before being rerouted to the HR department.

Training and Development

An ERP can handle all training requirements for employees. It can flag which employees need training and help organize programs accordingly. The software can also evaluate the pre and post-training performances of the employees and gives projections on the success rate.

Leave and Time Management

ERPs can provide comprehensive descriptions of all employees' accrued, outstanding, and advance leave profiles. When integrated with attendance systems, an employee's efficiency can be calculated based on hours worked, on-time and late arrivals, permissions, overtime, etc.

Loan Management

ERPs can also help organizations create an efficient loan management system. Integrating this system would mean automating the loan disbursement procedure through the employees' payroll and enabling deductibles through the payroll.

Business Travel Ticketing

Ticketing for business travel can be streamlined by ERPs while also being stringent on company policies. You can easily choose which staff members and their dependents will be traveling and allocate funds for their travel.

Medical

ERPs can manage medical issues as well. It can follow specific reimbursement criteria and grant funds accordingly. The software can also track any hospital contracts or insurance policies the organization may have.

Government Relations

ERP integration can also help in maintaining governmental relationships. Especially regarding employee-oriented procedures such as visa renewal, business visas, work, residential permits, etc.

Conclusion

ERP software can help an organization save time, effort, and money while standardizing and automating processes and increasing efficiency and precision. All this will eventually lead to boosts in revenue. So if you are looking to take your business to the next level, you must subscribe to ERP software to handle your HR and payroll management tasks.