Customer Relationship Management (CRM) and HR

Human Resources are those constituents of an organization that take care of the human facets and needs of all employees within that organization. Key functions of HR in an organization are-

  • Employee recruitment and selection.
  • Compensation calculation and reward program management.
  • In-house training for all employees according to skill sets.
  • Performance calculation and managing employee behavior.
  • Portfolio management and area location management.
  • Transformation and change management.
  • Structuring hierarchy of employees.
  • Employee relationship management.
  • Hiring Campaign management.

Employees are the significant assets and the primary promoters of profitable business for an organization. Hence, apart from managing clients and customers for business purpose, it’s a decisive responsibility of an organization to manage and fulfill all needs of its own employees. It would be improper to say that a CRM system is only used to manage clients and customer; most of the HR heads or managers are using CRM technologies for managing company’s human capital. This approach is called as Employee Resource Management (ERM). An ERM is a business process that fills gaps between an organizations and its employee to create a strong emotional and professional bonding among them.

A well integrated ERM provides a committed information base system for all Human resources. This is termed as Human Resource Information System (HRIS) in most of the renowned organizations which provides a better interface for HRs to deal with internal employees and screens all problems associated with relationship among organization and employee. Some of its features are listed below-

  • Profile Management- A profile management technique is used to manage profiles of all the employees which contain the entire employee related information which is also exposed to the employees in HRIS tool. Employees are allowed to change or edit some of this general information whenever there is a need.
  • Payment/Compensation- Details regarding employee payroll and employee branding can be easily managed under this. An employee can see all the payroll related features and the salary statements can be automatically mailed to every employee.
  • Training- Notification to attend online and manual training can be easily distributed within the organization. These can be online tracked for internship which can be optional or mandatory.
  • Leave Management- Employee have a dedicated portal for applying or notifying for leaves. They just have to apply for leave through this portal and the information is escalated to his/her manager. The manager has the option for approving or rejecting this application online. The applied leaves get deducted from the bundle of employee’s annual leaves automatically for which he gets email notification regularly.
  • Meetings and Certifications- Managers and employees have the facility to online schedules of meetings or to book available meeting rooms. A notification is sent automatically to all the attendees informing them to be present in the meeting on the specified timings and venue. All the employees also have the facility to complete or attain online certifications as and when needed.
  • Generate online Letters and data- The human resource managers or executives have the zeal to furnish offer letters or response letters online to the newly joined employees. There is no need for the new employees to re-enter their respective information again and again whenever needed.
  • Online Alerts- Online alters are generated whenever any employee have something due. For example, employees are used to get these alerts automatically when they need to complete any survey or review or when there is a need to renew any software license.
  • Export/Import facility- Every employee does have the deftness to export or import any sort of data available on the portal to and from an excel sheets or comma separated files (CSV files).

An organization is always benefitted by Employee Relationship Management if it is implementing it with CRM strategies with clear rules and guidelines. For an organization an upright and healthy relationship with employees always acts as reciprocal commutation and leads to betterment of both.


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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

Customer Relationship Management