ERP Software for HR & Payroll Management

6 Benefits of ERP Software for HR & Payroll Management

The use of an enterprise resource planning solution is very commonplace today, as it helps to automate and streamline business processes and increases efficiency. An ERP system is basically a vast collection of databases in a centralized location; the integration helps to make processes smoother and easier.

ERP software can be customized to include modules that a specific business requires. The benefits and advantages of implementing an ERP solution are manifold, and cuts across departments. Today, let’s take a look at how an ERP system can impact management of HR and payroll.

1. Planning Manpower Requirement

An ERP solution enables management as well as individual departments to specify their manpower requirements, which are then cross checked against available resources to confirm availability or otherwise. If the resource is scarce, the system is configured to raise a request for additional manpower, and it goes through a set hierarchal path for approvals. As it goes through the automated system, the process is much quicker, and there is little to no paperwork involved – and results are precise.

2. Recruitment

An efficient ERP system automates and streamlines the recruitment process, enabling organizations to establish efficient recruitment processes to select the most qualified and ideal professionals. It will send alerts to the HR department when employees are due for retirement or if someone has given notice, the system will alert HR and start the process to recruit replacements.

3. Maintaining Employee Portfolio

Detailed information about employees like their personal and professional information, identity documents like driving license, passport, visa, work permit, insurance, and any other desired information, can be maintained by the system. For companies with overseas employees, this is very valuable, as it alerts them regarding renewals of visas, permits, contracts, and so on, and thus helps to maintain GRC requirements.

4. Leave and Time Management

A robust ERP solution helps the HR department to easily manage the accrued, outstanding and advance leaves taken by employees. By integrating with the attendance marking system, management can easily assess employee efficiency by hours worked, punctual arrivals, overtime, and so on. HR can track leave taken in a much more efficient manner.

5. Salaries and Wages

ERP’s payroll module integrates all the departments including Finance, and the payroll generation is automated. This makes the task very easy for the HR, as they can process the payroll with just the click of a button. It eliminates a lot of manual effort, and saves time; accounts teams can direct their efforts towards more critical tasks. It also helps organizations to reduce dependency on manual effort, and maintain minimum number of employees for such tasks, thereby bringing down costs.

6. Loan Management

ERP software helps companies to create and maintain an efficient system of loan management for supporting its employees. Through integration with the Finance Department, the loan procedure can be automated by clubbing with the payroll. This can be worked out for both disbursal and repayment, as deductions.


ERP Software can help you save time, effort, and money, standardize and automate processes, increase efficiency and precision, and eventually, boost revenues. There are dozens of ERP solutions available in the market, so how do you choose?

IPIX ERP is cost effective, flexible, customizable, and scalable, making it ideal for startups, and small and medium businesses that are looking to grow.

To know how IPIX ERP can take your business to the next level, contact us today.