ERP for HR, or enterprise resource planning software modules for human resource management, are undergoing a rapid evolutionary process. Over a short period of time, just a few years, ERP for HR products have expanded in sophistication and capabilities while becoming increasingly cost effective for small and mid-sized businesses with restrictive technology budgets.
ERP for HR can be installed to help human resource managers control a wide variety of business functions including selective recruiting, retention, staff training program coordination, and regulatory compliance with safety and equal opportunity employment mandates. ERP for HR can also be used to strategically deploy talent, to gather analyze and process employee performance reviews, and to manage actions and protocols related to promotions, transfers and terminations.
ERP for HR
In the early days of ERP system development, ERP for HR programs were modules designed to be run on an extensive integrated ERP business solution, which usually involved multiple software programs with diverse functions running on a single or multi-tiered server architecture which was owned and maintained by the company. These large infrastructures and the ERP for HR, accounting, payroll and other modules designed to run on them, were expensive and complex. But once installed, early ERP system infrastructures were designed to last for decades or longer. This eventually led to slowdown in demand at the high budget level as large businesses that wanted ERP systems installed them and thus removed themselves from a pool of potential market share. As this happened, developers and providers of ERP for HR software decided to redirect their attention downstream to take advantage of rising demand among smaller and smaller business clients.
At this point, ERP for HR products have come onto the market that are scaled to accommodate a spectrum of small business technology budgets. The smallest and most economical ERP for HR products cover the most basic HR functionalities, and the higher end product suites are more comprehensive but come at a higher cost. These products can usually be run by small businesses that do not have an ERP infrastructure of their own, as long as these small business clients have access to hosting solutions or software service providers. Hosting solutions and SaaS providers can allow small business owners to run products and applications on a shared server architecture in a rental capacity, which can allow these businesses to sidestep the cost of server ownership and maintenance. This can work to the advantage of both the software product provider and the CEO and human resource manager of the small business that decides to install these ERP for HR products. During a difficult economy, the right ERP for HR software products can give small firms the competitive edge they need to stay ahead of the competition.
HR ERP products and software services, also called human resource management applications for enterprise resource planning business solutions, are rapidly expanding in capability and are coming steadily within the financial reach of smaller and smaller business clients. About two decades ago, the earliest HR ERP products were first developed to be run on early integrated business solutions, or ERP systems. Enterprise resource planning systems offered a new kind of software infrastructure to large business owners with expansive technology budgets and high tolerance for risk.
ERP systems were designed to allow separate departments with a diverse array of incompatible software functions to be unified onto a single streamlined platform. This would allow accounting, marketing, payroll, customer service, and HR ERP software programs to connect with a central server using interfaces that offered the same look and feel. With accounting, marketing, and HR ERP programs all running on the same server, databases could be shared by authorized users across all of these departments, and the data held in these documents could be updated in real time. This could revolutionize business efficiency, productivity, and interdepartmental communication.
Early HR ERP modules were very popular, and even though the first ERP systems were designed for use in the manufacturing sector, HR ERP programs had applications that extended to other business sectors and models as well, so they soon gained popularity across a wide variety of organizations including university systems and government offices. Before long, large businesses with flexible technology budgets were implementing HR ERP modules and using them to control work force deployment, strategic hiring and worker retention.
Within a few years after the arrival of the new millennium, market saturation began to occur and demand for HR ERP systems began to slow at the high budget level. This motivated developers to turn their attention downstream toward the previously neglected small and mid-sized business markets. In order to satisfy a rising level of demand among these smaller clients, developers needed to customize and scale their HR ERP product offerings. At this point, a wide variety of scaled modules and product suites are available to small business clients to help them manage back office business tasks. Many of these product suites are designed to be run on server architectures, but hosting solutions and software service providers can allow small business clients to run integrated software programs on shared, collective servers in a rental capacity. This can allow small business owners to sidestep the cost of server ownership and maintenance while still taking advantage of database sharing and the constantly evolving functionalities offered by back office software programs. The right products can sometimes give small business clients a competitive edge that can help them stay afloat and get ahead, even during challenging market climates.
Human resource software applications designed to be run on an integrated enterprise resource planning infrastructure, also called HR management software modules, are becoming an increasingly vital tool for small business owners across a wide variety of industry sectors. HR management software applications are just one of several indispensible and rapidly evolving forms of back office management modules, which also include programs for accounting, payroll and customer relationship management.
HR management software can help small business managers handle vital human resource tasks like recruiting, strategic staff deployment, staff training, individual career management, performance review collection and analysis, and regulatory compliance with federal mandates regarding safety and equal opportunity employment. HR management software modules can also help with disciplinary actions, transfers and termination protocols. If you own a small business or act as a technology manager, you may have investigated HR management software options a few years ago and found many of these tools beyond the reach of a restrictive small business budget. If you haven’t looked back since that then, it may be time to reopen your investigation of HR management software tools for you firm.
HR Management Software
Over the last several years, HR management software and other back office management tools have become more streamlined, better customized. They’ve expanded in capabilities and in many cases, they’ve come down in cost. Comparable systems, or even inferior systems, may have been cost prohibitive at one point, but have come within reach just during the last six years. This is largely because of a market shift among large integrated software providers, who could once afford to ignore demand at the small business level. The high budget market for integrated enterprise resource planning systems began to experience saturation soon after the arrival of the new millennium.
Within a few years, most of the fortune five hundred companies and government offices that wanted ERP implementations had them, and that left providers searching for ways to shift their focus downstream and compete for market share at the smaller business level. In order to succeed in this endeavor, providers have been aggressively scaling and customizing HR management software products in order to make them appealing and cost permissible for the small business market. Many HR management software product suites sold today are available in scaled options, with the most basic packages being the most affordable and the higher end products suites offering more comprehensives capabilities and services. Each of these modules are designed to be upgrade ready so they can grow as a business grows. In addition to these scaled product offerings, small businesses also have access to HR management software available as free ware or open source software that can be downloaded at little or no cost over the internet.
HR Software System
HR software system capabilities have expanded rapidly during the course of the last few decades, and newly available HR software system modules exist now that would have been difficult to imagine just a few short years ago. Some of these impressive new capabilities are components of HR software system modules that, until recently, would also have been beyond the reach of many small businesses with restrictive technology budgets. What events have spurred this rapid evolution in HR software system capability and affordability? The answer lies with some of the software market shifts that took place during the approach of the new millennium.
Early ERP or enterprise resource planning business solutions were designed to help department managers in the manufacturing sector free their employees from isolated software platforms that prevented them from communicating and sharing data with other departments and business units. These early systems were implemented in the late 1980s. They allowed all employee throughout a company to interact with a central server architecture using interfaces that offered a standardized look and feel. With ERP systems in place, employees could share databases housed on the server that could be updated in real time. HR software system modules, as well as modules for accounting, payroll and customer relationship management, could all be run on the server infrastructure as applications. These systems revolutionized manufacturing shop floor efficiency and soon became popular in many other business sectors well beyond manufacturing, including universities and government offices. HR software system applications appealed to a wide variety of business models, and as the millennium approached, these products were in high demand among companies who could afford them.
After the transition, however, the demand for ERP business solutions began to slow at the high budget level, primarily due to market saturation. Once installed, ERP infrastructures were designed to last for decades or longer, so the interest in new implementations began to cool. In order to remain competitive, HR software system developers and providers began to turn their attention downstream to smaller business clients, and began scaling and streamlining their products to appeal to technology mangers with tighter budgets and stake out a portion of small business market share. Their efforts yielded product suites that are affordable, efficient, and can be run on server infrastructures provided by hosting solutions and software service providers. These intermediary solutions can allow small business owners to sidestep the cost of server architecture and maintenance, and gain the advantages of a comprehensive HR software system application package. Some of these advantages include functions for strategic recruiting, hiring, and employee training coordination. Others include programs that facilitate workforce deployment, collection and analysis of employee reviews, strategic retention plans, and incentive development.