ERP. Enterprise resource planning. What resource of any enterprise is more important than the people who sell the products and services, the people who make the products and the people who support those activities?
Most of today’s ERP systems include HRM or human resources management in their capabilities. HR functions always include recruiting, training, rewarding, and appraising people. HR will also watch over the organizational culture, and ensure compliance with labor and employment laws as well as compliance with other organizations such as labor unions.
ERP Provides an Integrated Database
In one sense, ERP is nothing but a massive set of databases. Much of the needs of ERP and HR fall into the database category. Names and tax ID’s of employees and their pay rates. How many hours did they work? What benefits have they accrued? Who needs to know and when is the report due?
ERP Tracks Employee Credentials
Does your business depend on certified professionals? Maybe your drawings need to be signed by an engineer. Maybe your quality system required by your customers depends on specific professional credentials. ERP can track the people with the credentials and the expiration dates.
ERP Ensures External Compliance
Governments require equal opportunities for all. HR systems will track your applicants and their backgrounds including which ones were hired and which ones were not. A simple query will provide the necessary report data. If you ever need to prove equal opportunities are available within your business , your ERP HR module needs to be tracking the data for you.
…and Internal Compliance
ERP HR compliance is not only external. Managing talent is part of complying with your plans for the growth of the business. Wages should be in correlation across disciplines within geographic areas. Background screening helps avoid bad hires that can disrupt the flow of business and waste time and money.
ERP Encourages Collaboration Across Departments
Your ERP HR module can also help with collaboration by connecting people who can help each other. It isn’t unusual for a group to have a need for some talent and be completely unaware that some person just upstairs has that talent.
Self-Service ERP Reduces HR Workload
Little things like automated recording and data collection makes people’s lives easier. If people can update their own records online on their own time, there is no need for a person from HR to enter documents into the database and file paperwork. These ERP HR features will help keep employees happy and enhance retention.
About The Author – Tom Miller
Tom completed implementations of Epicor, SAP, QAD, and Micro MRP. He works as a logistics and supply chain manager and he always looks for processes to improve. He lives near San Francisco Bay in California and can be found on the water in his kayak or on the road riding his motorcycle.