Pratyusha Sharma

1 year ago · 5 min. reading time · ~10 ·

Pratyusha blog
Human Resource (HR) & Payroll Module in ERP

Human Resource (HR) & Payroll Module in ERP

In the daily operations of any firm, the Human Resources (HR) and Payroll module is an essential part of most ERP systems.


What is HR Software?

HR software, often known as human resources management systems (HRMS), is a full-featured web-based solution for organizing and enhancing regular human resources tasks and activities. It incorporates a multitude of systems and procedures to guarantee effective and efficient administration of data, company operations, and human resources. By organizing personnel data, automating tedious activities, and producing data-driven reports on time, HR software achieves this.


What is Payroll Software?

Employee remuneration and benefits are related to payroll, as the term suggests. HR software and payroll software both use the internet to administer, maintain, and automate employee payments. Reducing the need for human handling, helps firms calculate and process payroll for each employee precisely. It does away with human error by automating payroll operations. Paychecks and direct payments are also produced by the payroll system regularly.


It's not simple to choose an HRMS. There are several HRMS options on the market, but not all of them are appropriate for your company's needs. An HRMS increases an organization's production and efficiency by reducing the need for human labor and getting rid of boring chores.




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Any HRMS that you decide to install or implement should be able to handle the evolving requirements of the modern workplace. The team in charge of human resource management is primarily responsible for creating an environment that is conducive to work, as well as creating workplace policies, handling payroll and salary disbursement, conducting employee interviews, recruiting new hires, and onboarding them. They also develop employee engagement programs, manage performance, comply with legal requirements, and generate reports. Many of these jobs require manual labor, which takes time and may include unintentional human mistakes. The HR department and top management greatly benefit from an HRMS, which is urgently needed. Processes are streamlined, made more efficient, and work is made much simpler.


There is a catch, though. Not every HRMS on the market offers the same advantages. According to the particular needs of the company, various modules, each of which serves a different purpose, should be used. The organizational requirements of a firm today are continually evolving. Any HRMS you choose to use should therefore be able to adapt to these shifting requirements. But what are the modules that every contemporary HRMS ought to have?


Core HR

For quick and simple access, the Core HR module centralizes all human resource records in one location. It facilitates the management of employee-specific databases, which contain information on each employee's educational and professional backgrounds, abilities, wage advancement, tracking of assets, and information on their driving, visa, job, and passport statuses, among other things. It offers thorough and user-friendly management of leave and plane tickets. With a few clicks, all the documentation linked to the employees can be kept and retrieved whenever needed. The top HR module gives HR management the authority to specify employee grades and the rewards associated with them.



Payroll processing on time is one of the department's key obligations. Processing payroll is a crucial task, and any mistakes could result in serious financial difficulties or harm the organization's reputation. Processing payroll also entails creating the required reports and calculating all statutory dues (employee and employer payments). Additionally, the employees must be properly notified of tax calculations and deductions, given pay stubs, advised of reimbursement balances, and any revised policies, among other things. An HRMS eliminates the hassle of manually processing payroll and automates the procedures, saving a significant amount of time and money. An HRMS decreases the complexity of payroll processing by providing an integrated accounting module, automatic tax computations, frequent audit & reporting tools, tabular data storage, and a programmable rule-based engine.


Self Service

Particularly for the remote workforce, the Employee Self-Service module is a crucial component. It helps employees become more independent by giving them the ability to handle important HR tasks including requesting time off, seeing pay stubs, requesting reimbursement, submitting training requests, and much more. By expediting the completion of numerous HR processes, self-service also contributes to less paperwork and higher employee satisfaction. ESS promotes employee happiness while saving critical time, and easing pressure on the HR division. Because they can access and update their records, employees can make sure that all data is correct and current.


Attendance Management

Any HR function must include tracking employee work schedules. It is crucial to figure out work hours based on entry and exit times because this information directly impacts payroll. A variety of mandatory reports would also need to be generated by organizations using the attendance data. By linking your HRMS with your company's biometric or access control systems, you may efficiently track employee attendance. To automate the process of calculating salaries, scheduling employee shifts, monitoring remote workers' attendance and effectively integrating all of this information with the payroll system.


Recruitment Management

Inviting job applications for a specific position, sifting through innumerable CVs, keeping track of applications, arranging and managing interviews, and other responsibilities up till onboarding are all part of the important HR function of recruiting personnel. A crucial duty is choosing the best candidate at the correct time based on their qualifications and timing. When it comes to recruitment, both of these outcomes are undesirable: they could cause the perfect candidate to be overlooked or result in a considerably lengthier procedure. The recruiting module allows users to easily create job openings and rapidly review candidate resumes, which can help you standardize every step of the hiring procedure. The HRMS Recruitment capability makes it quick and simple to do tasks like candidate shortlisting, interview invites, reference tracking, storing interview feedback, and contract preparation.



A successful onboarding procedure enhances the company's reputation and provides a firm foundation for an employee's tenure there. The entire employee onboarding process includes several tasks that are completed on the employee's first day after joining the company. With the aid of an HRMS, you can encourage new hires throughout the onboarding process by demonstrating to them that they are making the right choice. The onboarding process in a contemporary HRMS facilitates the entire process by assigning assignments, training sessions, the new hire's initial connections, employee profiles, joining information, etc.


Performance Management

Performance management is a systematic process used to evaluate an employee's performance over a predetermined time. It is conducted at regular intervals. It establishes the evaluation and serves as a crucial instrument for assessing the employee's productivity while working for the company. Data mapping is a quick and effective technique that gives a more accurate image. It informs HR and senior management about the employee's performance level and whether it is in line with the company's commercial objectives. The Performance Management system is designed, implemented, and kept up to date by HR specialists. The performance management module aids in organizing and monitoring each stage of the employee evaluation procedure.


Reports and Analytics

The stakeholders will receive several reports from the HR department. These reports come in a tremendous volume and have a consistent format. A centralized system with pre-built reports is helpful as a result. Stakeholders can quickly glance at the organization's numerous processes using these reports, which are simple to access. Reports are now more accurate and understandable due to the abundance of data available. An HRMS assists with effective task delegation and lessens the load on HR staff.


An HRMS is necessary due to the modern workforce's changing needs. The global pandemic has caused a seismic shift in the needs of the working population around the world and has altered how we conduct business. There is an urgent need for firms to deploy an HRMS as a result of the growth of remote work and other issues. As was previously mentioned, each company has different demands and expectations. Only after confirming that an HRMS can satisfy the demands put forth by your organization, is scalable, or can develop with your organization, and is an effective management system should it be cautiously adopted. Although the modules included in each HRMS vary, these are some of the few crucial modules that are a necessity when it comes to putting an HRMS into place for your company.



The human resources process can be streamlined in numerous ways with the help of HR software. The best HR and payroll software module in India will have an ERP system that combines functions like staff administration, tools for recruiting and retaining employees, timekeeping, payroll processing, and reporting. By automating repetitive, time-consuming operations, cloud-based HR software frees HR to concentrate on more vital responsibilities. Regardless of the size of your business, it may help you streamline the workflow of your HR department to make it more effective and trackable.


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