What is an ERP system for Human Resources?

Author : ozgarag
Publish Date : 2020-11-09 09:52:23

What is an ERP system for Human Resources?

At this point we already know that technology is the great ally of Human Resources for the present and the future of the sector. However, this evolves at such a speed that it is sometimes difficult to keep up with it and we get lost in the latest advances.

Next, we are going to talk about what is an ERP Solutions Provider Company Dubai. ERPs have been in the business environment for many years since they are designed to integrate and facilitate the management of the same, therefore incorporating modules related to people management. In addition to talking about them, we want to go a step further and compare them with one of the most cutting-edge technologies: HRMS.

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Definition of ERP for Human Resources

ERP corresponds to the acronym in English for Enterprise Resource Planning, which in Spanish means "enterprise resource planning". This is the name given to the software that allows companies to integrate and manage tasks from different areas, such as Human Resources.


They are normally designed for large companies that need a comprehensive management system. To do this, the ERP is divided into modules that address specific areas of a company. Human Resources is, of course, one of them.

The objective of a Human Resources ERP is, therefore, to automate administrative work and streamline internal processes to save time and effort for the people who make up the department.

It can be used for management, payroll, hiring, evaluations, job offers ... and all this is integrated under the same module, which facilitates general management and decision-making. A

Functionalities of an ERP vs HRMS

Today we can find different digital tools to facilitate the work of the human resources department. One of them is the Human Resources Management System (HRMS) or, in Spanish, "human resource management systems". These are specifically designed to manage department processes, computerize them and automate them.

As it is, so to speak, specialized software that is not part of a much more complete platform, as is the case with ERPs, its system is more robust and contains more functionalities.

Functionalities of an ERP

 As we have said, an ERP is made up of different modules to serve different areas of the company. In the human resources part, the usual thing is to be able to automate those tasks that rob the professionals of this department the most time .

When choosing an ERP Solutions Provider Company Dubai, it is important to look for the one that incorporates the greatest number of functionalities possible. These are some of the usual ones:

Basic management of employee data: storage and management of personal data of staff employees.

Payroll and compensation management: monitoring of payroll and the incidents that may occur in them:

Time registration control: registration of the time of entry and exit of each worker.

Employee training and development: design and development of internal training programs within the company.

Recruitment: execution of selection processes, publication of job offers, etc.

Analysis and reporting: KPI reporting to make better HR decisions.

Additionally, many ERP in Human Resources already work in the cloud so it is possible to access all this information from any place or device.

Functionalities of an HRMS

Payroll management: recording and monitoring of incidents, sending information to the people responsible for creating payroll, etc.

Time registration: in compliance with Spanish law, registration of entry and exit of each employee. Information storage for four years.

Employee portal: access for employees with relevant information for each of them (vacation days off, payroll, etc.).

Workflows: automation of tasks to save time.

Holidays and absences: management and approval of holidays and absences of employees through a single channel.

Performance evaluation: design and implementation of performance evaluation plans within the company.

Recruitment and selection of personnel: support for the talent selection processes to filter resumes, unify communications, design interviews, etc.

Organizational chart: design of the company structure to better understand internal flows.

Work environment surveys: automatic sending of anonymous questionnaires to know the degree of employee satisfaction.

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