4 Benefits of ERP Software for HR and Payroll
Enterprise Resource Planning (ERP) software has experienced an explosion in popularity over the last few years and ERP software has found its way into virtually every sector and industry. There are accordingly a number of variations of ERP software and because of this, it has become harder to pin down exactly what it means.
In a nutshell, ERP software is designed to integrate the many different processes and tasks that a business needs to perform to function. These include things like managing inventory, processing payroll, and administrating human resources all become much easier when there is a decent ERP system at the heart of it.
One of the core components of a high-end ERP system is a shared database between the software and all the systems it interacts with. This is important in ensuring that data is available when it’s needed. The ERP software needs to be able to access, and make use of, data in many different formats and from multiple different sources. Because ERP could be linking up with systems in offices, warehouses, or even factories, there are an endless array of ways that an ERP system can be programmed to handle data from multiple sources. In this article, we are going to focus on the use of ERP in HR and payroll departments.
Why HR and Payroll?
Both human resources and payroll have to regularly process data in a particular way. The nature of the task never changes. Data is simply fed into pre-defined algorithms or put through a pre-defined process. The only human role in these tasks is to verify or input information. These types of task are perfect targets for the automation that an ERP system can offer. Here are some of the many benefits that ERP software brings to HR and payroll departments. Many payroll departments use the Bacs payment service to pay employees, often through Bacs bureau services such as AccessPay; ERP software can automate this.
Reduce Manpower Requirements
ERP software will be able to handle the routine tasks of HR and Payroll on its own, but also in the most efficient way possible. The software can perform these tasks faster and more accurately than a human operator can. This means that when you start using your ERP system, you will get a clear and accurate idea of how much manpower both departments really require. In most cases, the ERP software will help you to reduce the overall numbers of staff you hire.
In fact, ERP software can even help out with the process of hiring new applicants. If you have a standardized application form, then it is easy to have a computer read it and transcribe the data into digital format.
Maintain Accurate Records
ERP software is smart and the only limits on its capabilities are the limits on the capabilities of the programmers who work with it. As well as keeping the usual vital statistics on file at HR, ERP software allows you to compile extensive and accurate, records of all your employees. ERP software can also constantly update its records and the shared database. This means that whenever it detects that information has been entered into any system about an employee then it can automatically record this centrally.
ERP software will make it really easy for you to include in your employee’s file an objective measure of their performance. You are probably recording their uptime, downtime, sick leave, and other absences, and their general performance in some way already, even if that data isn’t being used.
Big data has taken the world of business by storm over the last decade or so. People are waking up to the power that exists when data is utilized to full effect. Data analytics, the branch of science which is concerned with analysing data to draw conclusions, becomes more powerful when there is more data available to analyse.
Modern businesses accumulate data at a prodigious rate. The problem is that all too often this data is being neglected and not used in any way. By taking this data, which is being generated and collected anyway, and running analytics with it, business owners can gain unprecedented insight into the behaviour of their company.
ERP software is crucial to any modern business, large or small. For large businesses, ERP software makes it easy to manage multiple areas at once. For small businesses, it puts them in a strong position for future expansion.
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