The ERP software bridges the gap between HRM and other mission-critical business functions including accounting, payroll, and customer relationship management (CRM). In doing so, it facilitates seamless communication between different departments using disparate software systems within the organization.
Here, we'll discuss the significance of ERP software development for HR and payroll management with a focus on its benefits for small and medium-sized enterprises.
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Benefits of ERP For HRM
Given below are the major benefits of ERP software development for human resource management.
Manpower Planning
An enterprise-grade HRM software accelerates and streamlines manpower planning to enhance business performance and productivity. Besides, it automates task scheduling based on the availability of resources as well as the complexity of the tasks at hand. Other factors that come into consideration while manpower planning and task scheduling are employee portfolio, their experience level, and expertise.
Recruitment Scheduling
An HR-based ERP software helps you conduct productive recruitment drives and lets you select the right candidates for the given position. It automatically scans hundreds of applications and resumes to filter out the most qualified candidates and schedule the further rounds of interviews accordingly.
Employee Record Management
The HRM software maintains a permanent and tamper-proof record of employee portfolio and makes it easily accessible to the authorized personnel. It also creates a virtual copy of all the necessary documents including experience letter, work permit, passport, certificates, and insurance papers.
Employee Training
ERP software plays a critical role in conducting productive knowledge sessions and employee training programs. The software is also conducive to evaluating the pre and post-training performance of various employees.
Leave and Attendance Tracking
ERP software development for HR and payroll management automates the process of leave and attendance tracking. The HRM software directly integrates with biometric systems and provides an employee self-service portal to apply for leaves and PTOs.
Benefits of ERP For Payroll Management
In addition to handling the HR complexities, an ERP software automates payroll processing with sheer accuracy and precision. Below are the main benefits of ERP software development for payroll management.
Payroll Processing
ERP systems can be designed to facilitate payroll processing based on the company's specified remuneration criterion. Nevertheless, it forms the essential link between the HR department and the accounting module to ensure accurate payroll processing with a minimal scope of errors.
Accounting and Bookkeeping
There are several ERP vendors that provide full-fledged accounting solutions to streamline financial management processes and improve bookkeeping. Alternatively, you can develop an ERP solution from scratch for handling your accounting-related tasks.
Customer Billing
The ERP solution for accounting will help you generate custom invoices for customers at the end of the billing cycle. It computes the billing amount by taking into account the factors like billable hours, additional resource payments, third-party license costs, and more.
Performance Appraisals
An ERP system can be designed to automate appraisals with a minimal bias to ensure a fair assessment of employee performance. There are several computing algorithms that enable organizations to accurately evaluate their employees' performance and facilitate remuneration accordingly. The algorithms incorporate advanced methodologies like the BARS method, forced-choice rating, scale rating, and multi-rater assessment.
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The Final Words
Understandably, ERP software development for HR and payroll management provides several benefits that essential for smoothly running diverse business operations. However, despite the many benefits, several startups and small-to-medium enterprises refrain from investing in ERP systems due to financial constraints. Nevertheless, there are several ERP vendors like Odoo, OFBiz, and ERPNext that provide an open-source platform for ERP software development. These platforms don't require software license fees and enable enterprises to develop custom ERP solutions at cost-effective rates. Using open-source tools is a great way to sail through the intricacies of ERP development while also reducing project costs.
Avail Our ERP Development Services To Strengthen Your Enterprise Processes
We are a 360-degree ERP software development company that designs and develops ERP systems to handle HRM and accounting processes. Our development team has years of industry experience and specializes in custom ERP software development for HR and payroll management. We use open-source platforms like Odoo, OFBiz, Sentrifugo, and Opentaps to develop HRM and CRM solutions for varied business needs. We have a proven track record in custom ERP application development with 100+ satisfied customers worldwide. For more information, visit our erpsolutions.oodles.io or drop us an email at [email protected]
