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What is an HR ERP System? And How can it Help a Human Resource Department?

What is the secret to a successful business? ERP HR systems! How? Let’s find out!

Is your business selling an innovative product or service? Does it have a strong, unique selling point? Do you pride yourself on your robust business management strategies? 

If the answer to all the above questions is a yes, congratulations, you’re halfway there. 

Now, do you have a reliable workforce that’s happily working to streamline the operations across your company?


Well, that’s too bad because if you don’t have a team of employees that are happy to work with you and take your vision further, you’ll never acquire the success you so desperately desire. 

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The Importance of Strong Workforce

Even if you have adequate monetary support, an innovative idea, and a dynamic business approach, things wouldn’t matter much if you don’t have a team that shares your vision and goes to the farthest extend to make your business grow. 

Remember, your employees are your biggest asset. 

The Solution: A Powerful Human Resource Department

Many companies believe that hiring the best resources in the market is all they need in the name of an effective and efficient ‘workforce.’ They fail to realize that even these resources need continuous nurturing, not just with words but with actions. 

As a business owner, you need to focus on establishing a human resource department that has the skills, and most importantly, the authority to help employees perform at their fullest potential. They need to have the right tools to streamline the HR operations and develop strategies that help make the experience of all employees in the company worthwhile. 

This is where ERP HR systems come into play. But before we get into the details, the important question stands, ‘what is ERP?’

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Understanding Enterprise Resource Planning (ERP) Systems

ERP is an acronym for Enterprise Resource Planning. These systems comprise of several tools that help companies manage and streamline all their internal operations. Be it bookkeeping operations or supply chain management, ERPs help oversee, track, manage, and even improve the operations all across a company. 

The ERPs are designed to replace tedious and manual tasks with automated models. By eliminating the need to dedicate resources to complete repetitive, tedious, manual tasks, ERPs help companies leverage the expertise of their resources in much more important tasks. While these automated operations free the employees of the exhausting, manual work, they can focus on areas that really require human intelligence. 

In addition to this, ERPs equip businesses with the capacity to take well-informed and data-backed decisions without any hassle. It helps establish a single database for the entire business’s data, of course, with restrictive access. This makes all the data from every department of the company accessible to the concerned parties without causing any disturbance in the company’s day-to-day operations.  

By integrating an ERP system into your business model, you take your business close to success by overcoming the biggest hurdle, internal instability. 

  • Effective and reliable business reporting capabilities
  • High-quality customer care and assistance 
  • Efficient inventory handling and cost management
  • Improved cash flow
  • Major savings on the cost
  • High-level data and cloud security
  • Better chances of business process improvement
  • Efficient supply chain management 

Given the many benefits, these software systems bring, almost every company is leveraging them to stabilize, improve, and grow their businesses. You’ll come across many names once you start exploring, such as SAP, SAGE, Microsoft Dynamics 365, and one of the most popular, Oracle NetSuite.  

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ERP and the Human Resource Department

The world cannot oversee the power of ERP system HR. It brings a myriad of benefits, allowing businesses to attain internal stability that helps them develop growth and expansion strategies. One of the best things about ERP is the way it helps the HR department streamline its operations, helping a company benefit from a satisfied workforce. 

Almost all popular ERPs come with HR functionalities, including personnel management, payroll, employee performance metrics, workforce management, health and safety, benefits, and training. Integrating ERP into the HR model brings efficiency in all operations, from calculating benefits to tracking employee performance. 

Efficient Human Resource Planning

One of the many ways ERP aids the HR roles is through efficient human resource planning. It helps managers and business owners make data-backed decisions while allowing them to forecast HR planning costs. 

Result-Driven Recruitment Management

Not only does an ERP helps manage existing employees, but it also makes the recruitment process of new additions simple, easy, and smooth. By optimizing the recruitment process, automating operations helps reduce the workload on the team. Moreover, it helps efficiently manage the recruitment costs and provides access to ample data to make smart decisions. 

Boosted Employee Performance

Learning is a lifelong process, and every employee wishes to learn throughout their tenure. To aid this, the HR teams can leverage ERP. It is a powerful way to help the workforce build on their abilities and improve their capabilities while expanding their skillset. ERPs assists in effective training management and handling. 

Performance Management

Keeping track of employee performance is no less than a challenge for an HR team, especially when they manage things manually. This is where ERP HR software comes into play. As an ERP helps automate the processes across a company, it makes it easy for HR to track employee metrics. An HR team can efficiently go ahead with benefits and payroll calculations by keeping track of an employee’s facilitative and operational activities, attendance, leaves, and much more. 

These are just a few of the benefits that ERP for HR brings to companies. There is a plethora of ways ERP HR systems can help companies acquire corporate stability and success. 

ERPs are a smart choice for building a workforce of satisfied and happy employees. Many companies confuse these for the Human Resources Information System (HRIS), a different tool. ERPs are a tool for the entire organization and has functionalities that help streamline operations across the entire company. HRIS systems, on the other hand, focus entirely on HR operations. While this may seem like the right choice, it would not impact the company’s overall efficiency. 

It is better to choose ERP HR systems as they help you improve every aspect of the business, including HR. 

If you’re looking to integrate a powerful ERP to improve your business’s performance, including that of HR, you need to partner up with Folio3. Being a Certified Alliance Partner of the world’s most popular ERP, Oracle NetSuite, Folio3 will help implement, integrate, and customize NetSuite services for you!

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