Are you using the Human Resources Management System (HRMS) integrated as part of your ERP system to the fullest extent possible? Because the focus during an ERP implementation process is typically on modules like CRM, WMS for distributors and MES for manufacturers, HR may not have received their fair share of attention in the configuration process or, if training was inadequate, the system may have fallen into some state of disuse over time.
How your ERP system can help keep HR on its toes.
At any rate, here’s a brief reminder of some of the critical enterprise issues your HRMS can fully automate, improving performance and reducing costs.
Compliance Management. Mid-sized businesses are confronted with a complex web of federal state and local labor laws and reporting requirements. The recently enacted Patient Protection and Affordable Care Act promises to add to that burden. Failing to file mandated reports accurately and on a timely basis can lead to significant fines and other penalties, and even lead to costly employee lawsuits.
The good news is that your HRMS system can automate most all of the compliance process. It starts by helping HR management determine which employment laws apply to your company and ensures that your are tracking the correct data to comply with reporting requirements. Then, pulling data from within the HR database, reports are automatically generated with no additional effort. You ERP vendor should be able to supply regular compliance updates as tax and employment laws continue to evolve.
Employee Self Service. Employees care passionately about their employee records and benefits package and they always have twenty questions they would like to have answers to. That can put quite an administrative burden on HR personnel. Fortunately, employees also love to have online access to that information, via the company network or over the Internet. Employee self service solutions enable employees to check payroll information and change W-4 forms, to submit insurance claims and check their status. The entire benefits enrollment process can be automated, timesheets can be submitted, payroll checks distributed and new employees “on boarded” with online replacements for the normal ream of paperwork that must be filled out and processed. Performance reviews can become menu-driven and made available to employees electronically. The employee portal also becomes a powerful tool for communicating with employees about important corporate news. Employee self service results in productivity gains, improved two-way communication, higher accuracy and a greatly reduced administrative burden. And, importantly, employee satisfaction soars.
Internal HR Reporting. One of the big benefits of an ERP system, which extends to the HRMS, is that all the data enterprise wide from all transactions goes into a single, standardized database. This, for example, would enable HR to pick up sales commission data directly from the CRM order entry system. It also enables HR managers to establish key employee productivity metrics and track them on graphical “dashboards” in real time. Notifications can be established that alert management when a particular metric, such as overtime costs, exceeds a predetermined range. HRMS systems come with a wide range of “best practices” reports and analyses that enable HR executives to make better informed, more timely decisions.