The productivity of a company is largely dependent on the performance of its employees. Even in times of digitalization, it is impossible for a company to be successful without the commitment of its people.
This makes it all the more important that you always have an overview of your HR processes and data. The central administration of human resources (HR) via an ERP system offers many opportunities: you can simplify processes, create flexibility and save a lot of time. In this article, we discuss the most important functions and benefits that an ERP-based HR solution offers you in your day-to-day work.
How can an ERP system support HR?
The ERP system is often referred to as the heart of a company. And rightly so:
- As a central platform, it collects all business data in one place, displays it in real time and thus provides a structured insight into current processes.
- As it connects different areas of the company – such as purchasing, production and sales – it ensures smooth processes.
- It also enables the automation of routine activities.
Naturally, the Human Resources department also benefits from these advantages: Modern ERP software solutions ensure optimal coordination of employees and a noticeable reduction in the workload of the HR department. In turn, companies lay the foundation for greater productivity. So it’s no wonder that 98% of HR experts today consider digital knowledge and technology skills to be key competencies in the field of human resources. This is according to a representative study by PwC Germany.
Reason enough to take a closer look at the positive influences of an ERP system on your HR processes.
ERP in HR: the biggest advantages
1. more efficient personnel management in the ERP system
You probably know this: if you manually compare tables and lists during personnel planning, errors quickly creep in. And you need a lot of time, which ultimately costs your company money.
Human resources modules in ERP solutions put an end to such time-consuming work steps. All personnel data is stored digitally in the software, including:
- Vacation plans
- Company calendar
- Duty rosters
- Working time models
- Break regulations
This data makes personnel management considerably easier. In particular, the automation of processes and the use of algorithms allow you to achieve optimum personnel planning quickly and easily:
| The most important advantages | Examples |
| Fast processing of routine tasks | The HR module in the ERP system generates proposals for duty rosters that you only need to accept or adapt. |
| Simple checking of legal violations | Based on automatically evaluated time recording data, you can use a rule check to determine whether breaks and maximum working times have been observed. |
| Early identification of understaffing and overstaffing | Automatic data synchronization allows you to see immediately which personnel resources and qualifications are available. |
| Efficient management of different working time models | Flexible rules for full-time, part-time, flexitime, shift work, etc. are stored in the ERP system and linked to time recording, vacation management and payroll accounting. |
| Avoidance of manually generated errors | The ERP system transfers working times from time recording to payroll accounting and thus prevents incorrect data transfer. |
2. simplified personnel administration in the ERP system
The numerous administrative tasks involved in HR management are also time-consuming and error-prone without an ERP solution for human resources. These include
- Maintaining and updating personnel files
- the processing of new additions and departures
- the preparation of payroll accounting
- the recording of personnel times
Only by using ERP-based HR software will you receive significant support in personnel administration:
| The most important advantages | Examples |
| Acceleration of administrative activities | Digital recording aids shorten monotonous processes and make everyday work easier for employees. |
| High data and process quality | Automated electronic billing is secure, reliable, traceable and legally compliant. |
| Insightful analyses | The recorded personnel data can be evaluated at the touch of a button and converted into meaningful reports. This gives you valuable insights for well-founded personnel decisions. |
| Simple self-administration | Employees can view and independently edit their own data on self-service portals. For example, they can apply for leave and make subsequent postings to their time account. |
Nhi Stein, Asseco Solutions
Electronic payment transfers are triggered automatically and data is synchronized and updated across all processes. All of this saves tedious, redundant work.
3. improved organization of the recruitment process in the ERP system
Application management also costs the HR department a lot of time without software support. The following organizational activities are particularly time-consuming:
- Manual review of application documents and selection of qualified candidates
- Coordination of appointments for job interviews
- Individual status updates, such as confirmations of receipt, interim notifications and rejections
- Documentation and reporting
To make the organization of the recruitment process more efficient, you can greatly speed up the time wasters mentioned above with ERP-based HR software:
| The most important advantages | Examples |
| Automated preselection | The automatic reading of CVs allows a quick pre-selection. |
| Systematic recording of applicant data | When you set up an applicant database, specific details such as name, address, level of education and qualifications are recorded in an organized manner. |
| Clear data management | Invitations, appointments and contracts are stored in the ERP system in a digitally structured manner. This allows you to maintain an overview and have relevant information quickly to hand. |
| Efficient coordination | Automated synchronization with calendars reduces email ping-pong between HR, specialist departments and candidates. |
| Automated communication | Depending on the status, emails are sent in the recruitment process based on rules. |
4. optimized coordination of further training
In addition to recruiting new employees, the HR department is also responsible for the further development of existing employees. Whether seminars, online courses or individual mentoring, the HR department is responsible for coordinating training measures. In this context, tasks such as
- Identification of further training needs
- Planning and organization of training courses (dates, rooms, course management, etc.)
- Registration of participants
- Documentation of qualifications and certificates
- Performance review
You can also simplify these recurring personnel development activities and save time with the help of HR modules in ERP systems:
| The most important advantages | Examples |
| Central data management | All training measures and participants as well as the current enrolment figures are stored in the ERP system. |
| Automated planning | Training dates can be planned automatically and synchronized with working hours. |
| Transparency about qualifications | HR can see at a glance which employees have which qualifications. |
| Efficient communication | Invitations and reminders for events are sent automatically. |
| Complete documentation | Certificates can be called up in the ERP at any time. |
| Simple controlling | The ERP solution enables simple evaluations of costs and training successes. |
Human Resources in ERP:
Application example DIL Engineering GmbH
DIL Engineering has been using the APplus ERP system since 2020. This enables the mechanical engineering company from Lower Saxony to plan personnel capacities particularly efficiently.
Employees can check their availability at any time by logging in to jobs directly in APplus. This brings maximum transparency and efficiency to the planning processes.
For the future, DIL Engineering is aiming to increase the automation of HR processes in the ERP system in order to increasingly relieve the burden on departmental management.
Conclusion: ERP-supported HR expands the scope for action
HR benefits across the board from a modern ERP system with HR functions. This is because the automation of time-consuming organizational HR processes reduces numerous routine activities and thus creates space for strategic topics and personal, creative exchange. Instead of just maintaining data and coordinating appointments, the focus in HR work is once again on people.
In the long term, ERP-based HR management leads to more efficient processes and better personnel decisions. As you can identify requirements and potential at an early stage, personnel resources and training measures can be planned with foresight. This ultimately makes your company more agile and enables it to react more quickly to changes. As a result, the HR department develops from an administrative service provider to a strategic partner for company management.
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