Human Resources: What Are the Top 10 Reasons to Switch to ERP?
HR Digital Transformation
Your Human Resource department is an essential part of your organization, and an ERP system provides expanded opportunities to create synergy between your people and processes. Here are the top 10 reasons your company needs to switch to an ERP system for HR:
- Decisions on employee management can be made based on current, live data: With an ERP system, management can use predictive workforce analytics (like employee performance, health, and potential) to make better employee managerial decisions. ERP systems can display this consolidated employee data in real time; versus old systems that could take weeks to put together.
- Keeps licensing expenses down: Since an ERP system is a consolidated, integrated system, your HR department won’t need licenses for multiple systems to keep track of all of their information – instead you would only need to pay for one licensure (keeping expenses down and make maintenance more manageable).
- Automates the mundane (but essential) HR activities: Many necessary HR activities (like order processing, invoicing, expenses approvals, and fulfillment) are automated with the use of an ERP system – freeing up employees’ time to be able to concentrate on other tasks.
- Makes generating reports easier: HR activities revolve around data that comes from various sources. Having an ERP system in place not only consolidates your data, but it also saves time by enabling employees to access relevant information faster, produce reports quicker, and it ensures the use of accurate, error-free information.
- Keeps data up-to-date and eliminates duplication: Since your organization’s data comes from multiple places, there is always the chance that information can get misconstrued or duplicated. Having an ERP system in place keeps duplication from occurring and provides up-to-date data.
- Many HR-centric processes can be switched to employee-centric procedures: ERP systems allow employees to access and manipulate their data (like changing their personal information) and perform tasks (like requesting time off) on their own versus old procedures that used to require a significant amount of paperwork and time to complete.
- Employee performance activities can be recorded and stored on one system: All employee-related activities from training and certification dates, to attendance reports and performance reviews, are securely recorded and stored in one place with an ERP system.
- Integrated systems provide better information to management and employees: Having one integrated system takes the focus away from individual processes and is useful for both employees as well as management. Employees have access to their relevant information (including their developmental needs and growth opportunities). Informed employees are also more engaged, less frustrated, and more productive. Management also has a better strategic insight into their company and outcomes can improve.
- Shareable data promotes integration amongst departments: Your Human Resource department generates information that other departments need. An ERP system is useful because it helps to make sure the right information is shared with the right people to help make your entire business run smoothly and efficiently.
- The ability for management to see a long-term overall picture of HR: An ERP system enables you to look at your organization from a long-term perspective versus a short-term view. By being able to analyze data over a period of time, management is better able to identify trends and potential deficits to determine opportunities for improvement. ERP systems can then evolve to meet the changing needs of your organization.