As a business owner there are many different keys to success, one of the most important being your staff. If you take care of your employees, there is a good chance that your business will not only be successful but will hopefully also operate with healthy margins. What is sometimes a challenge though is actually managing employees and dealing with all the related information. An Enterprise Resource Planning solution, more specifically a Human Resources module, can be an effective tool that allows you to better manage your employees.
What are Human Resource modules?
ERP, or Enterprise Resource Planning, is a suite of integrated business software applications (often called modules) that allow companies to track and manage data and even automate some business functions, including Human Resources.
Human Resource modules in particular are used to track different people-related functions, such as planning, payroll, administration, development, hiring, and more. Business services, like Standard Operating Procedures, job postings, news, forums, tracking of work hours, and benefits, etc., can all be unified into one module, which makes overall management and decision-making easier.
Benefits of using HR modules
Businesses that have integrated ERP and more specifically HR modules, have been able to benefit in a number of ways. Here are 5:
1. Automated processes that free up management
A large function of HR, as with many other business processes, is data entry and reporting. If you are trying to develop reports without an integrated ERP system, you probably need to pull data from numerous sources which takes time. This is time that can probably be better spent on more relevant tasks.
An ERP module data, once set up, will be more accessible. This simultaneously makes it easier to enter and pull data together into reports. And because large parts of daily tasks can be automated, you can ensure that what you need to complete is actually achieved.
2. Enhanced sharing of information and collaboration
Because HR is a central function of any business, data related to HR needs to eventually be shared with other teams or departments. Without ERP this likely means you will need to ask different people to share their data and then compile it into a useable format.
With ERP for HR, data is stored in a central location, or brought together to a central location, which means that data from different sources can be shared faster and easier. This also ensures that the right data is shared, thus enhancing overall outcomes and making it simpler for other teams to work together.
3. Management gains a clearer picture of HR
It can be tough to gain a short-term picture of your employee resources, especially when it comes to identifying potential resource shortfalls (e.g., double-booked holidays, employees who are constantly late, etc.) and where improvements can be made. For example, in most modules you can track overtime hours of employees, and receive alerts when overtime is past a certain threshold.
If you spot that one department is consistently banking extended overtime hours, you can move quickly to address this.
4. Data is kept up-to-date
As we’ve stated above, HR systems usually involve data from various locations. This means that there is always a chance of duplicate or incorrect information. A healthcare ERP module can help ensure that the data is not only correct, but also not duplicated, which can in turn speed up decision-making and enable better decisions to be made.
5. Reduced licensing expenses
Without ERP, your HR team could need five or more systems in order to keep track of everything. Each of these systems will need to be licensed, which can often be a serious investment on your behalf, not to mention the costs of setting up and maintaining these systems.
Because HR ERP modules offer an integrated solution, you pay for one license to cover all of your needs. This reduces overall expenses while also making it easier to budget and maintain.
If you are looking to integrate an ERP solution in your business, contact us today to learn more about how we can help.