7 Key Benefits of Integrated ERP and HCM System for Your Business
ERP systems provide users better visibility into their business operations and prevent data duplication, thereby enhancing efficiency and productivity throughout the organization. HCM systems, on the other hand, helps HR managers better manage employees. It also enables them to transform the traditional administrative functions, such as recruiting, training, payroll, compensation, and performance management.When integrated together, ERP and HCM systems can provide businesses with a single reporting system with the same security and controls over their data.

1. Single Source of Data

Though HCM and ERP data often overlap, many HR, finance, and accounts departments maintain these records separately. That’s probably because they don’t have a way to streamline and centralize these documents. As a result, it leads to chaos and inaccuracy during audits. By integrating ERP and HCM systems, you can facilitate sharing critical data and everyday processes such as payroll and growth forecasts. It helps improve communication between organizational silos, eliminates data duplication, and increases efficiency across departments. This also ensures anyone in the organization, regardless of their department or physical location, can seek an answer to their question (provided their role allows them to) and remain as productive as possible. And, since employees won’t have to ask for information from their superiors every time, this will save their time and allow them to focus on more value-related tasks. For instance, the payroll team can easily check who worked on which projects and for how many hours (including overtime) and ensure they receive the right remuneration. Stakeholders can check the completed projects, active projects, progress, and performance at a single location. This will enable them to make quick management decisions to grow the business.

2. Helps Determine Skill Gaps and Opportunities for Growth

ERP systems track the ongoing projects, the key resources required to complete them, and the availability of inventory & capital. HCM systems, on the other hand, track the people with the necessary skills to work on those projects. When integrated, these systems make it easier for the organization to effectively deploy the resources on the projects. This ensures the project is completed on time without compromising on quality. In other words, ERP and HCM together can help you determine the true costs of producing and delivering projects to the client (or market). It also helps you determine available resources so you can plan for new projects accordingly. However, make sure that anyone in the organization can access the information and that it is consistent and accurate. This will help everyone make smarter decisions quickly.

3. Understanding the Business As a Whole

A good HCM system must help companies manage human resources and related expenses (payroll and benefits). On the other hand, a well-designed ERP system must provide deep insights into the financial aspects of various business operations, helping you control costs while maximizing resource utilization. By integrating them, stakeholders can ensure efficient operations and effectively allocate resources - financial and human. This seamless interface between finance, HR, and day-to-day operations allows stakeholders to better understand their business and create strategies accordingly.

4. Optimizes Business Workflow

Having a single platform to monitor your business processes and people minimizes interruption and ensures consistent workflows. For instance, ERP helps carefully track employee performance and analyze results. This enables business owners to see which aspects of their processes are the most productive and which ones need improvement. While doing so, you can also consider other factors that affect the performance, such as managing authority, employee cost-center, employee location, and more. With all these insights in place, you can better optimize your business processes and streamline day-to-day activities to achieve better efficiency and productivity.

5. Provides Greater Reporting and Analysis Facility

A unified platform has a single source of data and reporting system with the same security features. This means, with the same access and approval mechanisms, organizations can effortlessly extract transactional reports, run predictive analysis, forecast growth, and make better decisions. Moreover, robust ERP software like ePROMIS has business intelligence capability that enables businesses to access appropriate information and correlate them across departments. You can use these insights to better plan the projects and improve efficiency. It also helps keep up with consumer behavior and changing demands. For instance, if you see a potential increase in demand for a specific product in the future, you can hire people with relevant skills to keep up with the demand. This will help you stay prepared and competitive in the long run.

6. Self Evaluation Gets Easier

Depending on your working processes, you can allow employees to self-evaluate their progress over time and improve themselves. Unfortunately, even managers are sometimes so occupied with tracking employees’ performance that they fail to track their own progress. With an integrated ERP and HCM system, you can allow them to self-evaluate and opt for any improvement (if required) to generate better results. This also eliminates the need for continuous supervision as they’ll be aware of their performance at any time and can even compare improvements over time.

7. Better and More Consistent Training Learning

ERP and HCM systems are as useful as you use them. For instance, the data provided by these tools can be used to train new employees on the dos and don’ts of the business. Plus, you can coach existing ones with the best practices as per the data. Since ERP also exposes the customer side of the business, businesses can use it to train their employees on how to enhance the customer experience based on data. This consistent training will make them feel like they’re growing professionally, ultimately helping you offer the best possible experience to your customers.


By integrating ERP and human capital management systems, you can offer your employees a single, unified data source, determine skill gaps, analyze your performance and make smarter decisions. Advanced cloud-based enterprise platforms like ePROMIS help businesses integrate ERP and HCM and streamline their processes. Contact our experts today to know more about how we can help you grow your business with the latest technologies and set a path towards digital transformation.