HR & payroll module
The HR and payroll module (often called Human Capital Management or HCM) manages the entire employee lifecycle – from recruitment to retirement. It handles employee data, attendance, payroll, benefits, performance, and compliance. Integration with finance ensures accurate cost allocation and reporting.
1. Employee master data
The central repository for all employee information:
- Personal details (name, address, contact)
- Employment history (hire date, position, department, manager)
- Salary, bank account, tax information
- Emergency contacts, qualifications, certifications
This data is used across all HR processes and feeds into payroll, benefits, and reporting.
2. Recruitment & onboarding
Manages job postings, applicant tracking, and interviews. Once a candidate is hired, onboarding workflows trigger:
- Creation of employee record
- Assignment of IT assets (laptop, access cards)
- Orientation tasks
- Probation tracking
3. Time & attendance
Tracks employee working hours, overtime, and shifts. Integration with biometric devices, access cards, or mobile apps. Data flows directly to payroll for accurate salary calculation.
4. Leave management
Employees request leave (annual, sick, maternity, etc.) through the system. Automated workflows send requests to managers for approval. The module tracks leave balances and enforces company policies (e.g., minimum notice, blackout periods).
5. Payroll processing
The payroll engine calculates salaries based on:
- Base pay, allowances, bonuses
- Deductions (tax, social security, loan repayments)
- Overtime and leave adjustments
- Reimbursements
Payroll runs can be simulated before finalisation. Once approved, payslips are generated and payments initiated (bank file, cheque).
6. Statutory compliance
ERP HR modules include country‑specific compliance features:
- Pension Income tax Social security
- End‑of‑service benefit calculation (Gratuity in Middle East)
- Statutory reporting (W-2, T4, etc.)
- Labour law compliance (working hours, overtime limits)
7. Performance & talent management
Supports performance appraisals, goal setting, and feedback. Includes:
- OKR/KPI tracking
- 360‑degree reviews
- Succession planning
- Training and development tracking
8. Employee self‑service (ESS) portal
A web/mobile portal where employees can:
- View and download payslips
- Request leave and view balances
- Update personal details (address, bank account)
- Access company policies and announcements
ESS reduces HR administrative workload and empowers employees.
| Integration with | How they work together |
|---|---|
| Finance | Payroll costs posted to GL; budgeting integrates with HR plans |
| Project management | Timesheets feed into project costing and billing |
| Procurement | Employee requisitions (e.g., business cards) linked to cost centre |
Key Takeaways
- HR module manages the complete employee lifecycle – hire to retire.
- Payroll automation ensures accurate and timely salary processing.
- Time and attendance data flows directly into payroll calculations.
- Employee self‑service portal reduces HR workload.
- Statutory compliance features handle local labour laws and tax requirements.
What is the difference between HR and HCM? HR (Human Resources) traditionally focuses on administration; HCM (Human Capital Management) includes strategic talent management, development, and workforce planning.
Can ERP handle multi‑country payroll? Yes, global ERPs support multiple countries with localised payroll rules, tax tables, and reporting.
What is a payroll register? A detailed report showing each employee's earnings, deductions, and net pay for a specific period – used for auditing and reconciliation.
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