Marcie Nguyen
Marcie is a skilled writer at Havi Technology focusing on creating content for marketing, eCommerce, point of sales, and ERP solutions. With over 8 years of experience in the retail, eCommerce and ERP technology sectors, Marcie is dedicated to providing insightful answers to business owners of all scales.
An ERP HR module offers benefits that are comparable to that of a Human Resource Management System (HRMS), such as streamlined payroll, payments, onboarding, recruitment, and more.
However, ERP for HR aims to meet different business goals from HRMS. Explore what specific features the HR module in ERP provides and how it’s compared to other HRM systems.
What Is An ERP For HR?
1. About ERP’s HRM modules
An Enterprise Resource Planning (ERP) system runs as the backbone of an organisation. The system consists of a set of modules (or applications) that represent critical business activities such as inventory, purchasing, finance, sales, and human resources.
Think of a large workspace where multiple departments, including HRM, work across isolated documents. The ERP stores all of those documents, integrates them into one location, and digitises them. For HRM, it provides a centralised database that collects employee data such as contact details, skill sets, salary history, and performance evaluations. The results are seamless data sharing and no more isolated data silos.
2. How can ERP HR handle key HR challenges?
Whether replacing an outdated system or eliminating manual processes, an ERP for HR offers robust features to support HRM and solve key challenges such as:
Differences Between Manual HR, ERP HR Modules, & HRMS
Selecting an appropriate HRM system is based on the size and requirements of your company. The following summary can assist you in recognising the major differences between HRMS (Human Resource Management System), ERP's HR modules, and manual HR practices:
Below is a quick overview of each approach:
HRMS: This is a specialised HR management system for handling all aspects of the employee lifecycle. It provides strong tools for talent, performance, onboarding, and recruitment management. The system is excellent at HR-specific operations but usually falls short of ERPs in terms of integration possibilities.
7 Key Features of ERP HR Modules
ERP systems are built with a variety of HRM features, based on their vendors' product development goals. However, they all aim at streamlining every stage of human resource management. This leads us to look at 7 of the most important components of an ERP:
Payroll Processing
Time & Attendance Management
Payments & Benefits Administration
Onboarding & Development
Recruitment & Selection
Performance & Appraisals Management
Reporting & Integration
ERP For HR, HRMS, or Custom Integration? Let Us Help Make A Decision
ERP HR modules prove themselves as a potential solution for centralising employees' data and optimising HRM procedures. However, factors that determine which system is best for you are your organization's size, requirements, and financial constraints.
We can assist you in analysing your unique workflows and provide the perfect ERP solution for your company. Our team of professionals offers tailored ERP solutions that, over time, empower your workers and optimise your HR procedures, regardless of the scope of your business.
ERP For HR - Frequently Asked Questions
1. Can ERP handle HR functions?
Yes, this is where ERP systems showcase their strengths. ERPs are particularly good for collecting and organising data from multiple HR-related duties, including hiring, performance reviews, payroll, and benefits management.
2. What is the ERP HR module?
The ERP HR modules are packed with robust features to manage every aspect of human resource management. These can include payroll, attendance, onboarding, and many other crucial tasks. They enable businesses to switch from manual to automated and organised HR procedures.
3. What is the difference between HRMS and ERP?
In a nutshell, Human Resource Management Systems (HRMS) are specialised for HRM-specific tasks, whereas ERPs focus on integrating organisation-wide processes, including HRM.
4. Is payroll part of the ERP system?
Yes! All core HR functionalities can be found in ERPs. They typically handle payroll, staff records administration, performance management, recruiting, and more.