HR And Payroll In ERP
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HR And Payroll In ERP

ERP means Enterprise Resource Planning which can be defined as a management software for business processes. ERP allows a business or an organisation to use integrated applications to manage the business.

ERP is a system that acts as a channel where information between different functional areas is passed along. Different functional areas of the organisation can be integrated and automated like human resources, finance, manufacturing and logistics. The integration between the different functional areas allows them to share information and communication improving relationships between departments and enhancing productivity within the organisation.

ERP Human Resource

A good ERP system should have the following traits:

1. Real Time:

Has have an online connection, an actual time connection.

2. Flexibility:

It has to be flexible and be able to adapt to the changing environment. The ERP system has to have the capacity to change with the changing organisation rules and standards.

3. Openness and Modular:

Has to have an open module system. That one can be able to make changes to one module without affecting the other modules.

4. Best Business Practices:

It must have a collection of best business processes applicable. Must be able to achieve organisation objectives and focus on bringing value to the organisation.

5. Comprehensive:

must be able to support a variety of the functional areas of the organisation .Most of the functions of the organisation should be done through the ERP system.

6. Optimise the Date:

A good ERP system must be able to optimise data for limited resources in the business to be efficiently and effectively utilised.

ERP Payroll Software

Employees are the primary stakeholder of the business or organisation and as such should managed properly and motivated and inspired .The motivation can be done through promotions, remuneration, bonuses and compensations according to the industry standards. For organisations with multiple business units, an ERP system can be used to track employees' time and also to communicate with them. There are various ERPs that organisations can use to integrate the HR and payroll and this varies from organisation to organisation.

Human resource basically deals with management of the employees .Payroll processing is key to any Human resource department since it focuses on employees' operational and remuneration matters. The payroll deals with administrating salaries in the organisation. The processing involves calculation of salaries, administrating benefits, deductions of taxes, and disbursement of salaries. Using an integrated HR and payroll system helps these two areas be able to share information and communicate with ease.

Integrating HR and Payroll systems offer many benefits as opposed to having separate HR and payroll systems. Efficiency, cost saving and optimise workflows are just some of the benefits that can arise by integrating the two systems. Integrating the HR and Payroll systems enable the two functions to make timely decisions regarding the employees' as employee data is in one location.

Integrated HR and payroll systems increases functionality and enables the HR and payroll to access, process, operate and manage all areas of the HR and payroll functions. Inquiry, reporting and analysis tools found in most of the ERP systems help managers have a clear sense of view. Integrated HR and payroll system are best suited for evolving businesses or organisations.

HR ERP System

There are several benefits of an organisation adapting an Integrated HR and payroll system with an ERP. The benefits are:

1. Employees can easily access information.

An integrated HR and payroll system creates a pool of Information and data that can be made available together at one source point. Employees are able to access the system and get information about the payroll, sick time, current tax deductions, benefits and available vacation time.

2. Reduction of paper work:

An integrated HR and payroll system helps reduce the paperwork. Since everything is updated on the system any communication is done using this system reducing communication by way of memos which some employees may not see in time. Integrating HR and payroll system reduces the paperwork involved in collecting and inputting employee data. Once the information is entered by the HR personnel it can be accessed by the payroll.

3. Increased accuracy:

Since data is entered once and from one source this will increase accuracy of the information being entered. This will also save time and prevent errors and discrepancies that could end up costing the organisation a lot of money. It also eliminates duplication errors as any changes made reflect and are updated immediately .Using an integrated HR and payroll system can also help improve data security. Most of the information contained in both the HR and payroll is private and confidential and is highly sensitive. Integrating HR and payroll systems into high secure platform can help protect the data.

4. Enhanced collaboration:

Integrated HR and payroll system increases synchronisation and enhances collaboration within the HR and payroll functions.

5. Enhance communication:

Integrated HR and payroll systems creates seamless communication between the HR and payroll functions. Changes and updates made by the HR such as terminations and promotions are electronically updated and can be access by the payroll eliminating any issues in communication.
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