Companies of all sizes and in every industry have a common need: they need to attract and retain top talent if they want to grow and succeed in today’s competitive marketplace. Enterprise resource planning (ERP) systems have long been used for sales and accounting, but they’ve only recently been leaned on by human resource teams.
The truth is, HR professionals can get a lot of benefits from the use of a high-quality ERP system. These team members are responsible for recruitment and finding great employees to bring on board. Beyond that, they have to deal with complicated payroll processes, manage time off requests, and facilitate successful onboarding professional growth. Long story short, your HR folks are busy people with a lot on their plates, and managing and tracking all of this information outside of a robust ERP system can be an absolutely nightmare.
This is where ERP for HR comes onto the scene.
How ERP Systems Streamline HR Management
Human resource departments have to take on a ton of responsibility. Mistakes aren’t an option, as these professionals are tasked with handling employees’ personal identifiable information, including salaries and documentation of workplace conflicts, which must strictly remain under lock and key. They also need to gather, enter, and analyze endless employee data to ensure they’re hitting their goals and metrics accordingly.
In order to deal with these tasks without faltering, human resource teams need ERP solutions that were designed to handle their very stringent, particular needs.
Comprehensive cloud ERP systems act as companies’ centralized databases, streaming in and sending out all sorts of information that will help your HR department do their jobs better; this ultimately flows down to a greater happiness across your organization. ERP systems give users total visibility into the entire organization, which is a time-saver and reduces the effort needed to switch back and forth between disparate systems. These solutions also employ strict security measures to ensure the protection of personal information, from both internal and external threats.
Benefits of ERP for HR
Now that you know a little more about how ERP can benefit HR teams in general, let’s dive in an get a bit more specific about the ways your human resource department can realize greater success with an enterprise resource planning solution on its side.
1. ERP Helps Companies Attract and Retain Top Talent
Today’s ERP systems support hybrid work, mobility, and team collaboration, all of which are important to a large chunk of today’s worker base. ERP also integrates HR management, which helps employees visualize and plan successful career paths within your organization while management gets to analyze data related to employees’ productivity and performance.
ERP can put the power of knowledge into managers’ hands, allowing them to see genuine evaluations of employees’ talents and ensuring they make development and retention plans in accordance with workers’ skillsets and needs. In doing so, ERP helps minimize the risks of team members’ contributions going unnoticed, enabling leaders to create a more balanced, fair workplace.
2. ERP Facilitates Successful Recruitment
ERP solutions allow you to set up screenings so you can analyze your overall business performance, as well as leaderships’ objectives, so your team can determine how many team members you need in each department. Using ERP, you’ll be able to store the details of each skill needed for every particular job and build workflows into the system to guide the HR recruitment process.
From there, the system can monitor onboarding processes and employee performance, ensuring leaders understand how to better recruit for certain roles and teams in the future.
3. ERP Helps HR Maintain Compliance
HR systems are subject to a lot of regulatory restrictions, which change all the time. Companies are required to keep up to date on local, state, and federal laws so they don’t endure penalties, which can be costly both financially and from a brand reputation standpoint. Not to mention, if your company works overseas, your HR team must also juggle a range of international requirements, which can be cumbersome (at best) to understand and navigate.
There are quite a few ERP systems that offer automatic updates when changes in the law occur, and some options, such as Acumatica Cloud ERP, also give you the option to choose an advanced, automated compliance reporting function, giving HR teams greater power when they need to navigate the complicated, ever-changing regulatory landscape.
4. ERP is Built for Time Management
Enterprise resource planning solutions help you by logging employees’ work hours, including overtime, so you can have fewer headaches when payroll rolls around. Additionally, these solutions assist you by generating balanced shift schedules for all of your workers, factoring in leave, holidays, illnesses, and other special occasions. Any change made to shifts or work-related events can be logged to ensure there’s a trackable history. If anyone ever feels there’s unfairness in the scheduling, you can easily look back and see how things were planned and what decisions went into making schedules.
5. ERP Helps HR be More Efficient
HR management tools are vital assets for your company, ensuring you extract the most from them when used properly. They have the potential to speed up processes, minimize physical paperwork, and save time. ERP systems ensure you do so in the fairest, most efficient, and organized manner.
Work with MIBAR
Here at MIBAR, our team of expert ERP consultants understands HR’s unique, specific needs, and we’re here to help you build out an ERP system that speaks to those requirements. Schedule a demo with us today to learn more!