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July 13, 2019

Importance of Employee Management Systems


Table of Contents

Tired of paperwork?

What exactly is an Employee Management System?

As the owner of a small or medium business, your responsibilities are to manage, onboard, track the time and productivity of employees, make sure employees are getting compensated and more. But, what about client relations, business strategies, and fieldwork? These tasks have to be addressed by someone, and quite frankly, in SME’s, no one but the owner and/or manager can take care of them.

Luckily, there are solutions that can help even the smallest businesses automate tedious administrative tasks. Employee management systems are a new digital technology that allow businesses to automate manual processes. Thus, freeing up time for tasks that have a higher priority for the business owners, such as strategic planning and customer relations.

There are several types of employee management systems, and some offer multiple functionalities within a platform, while others specialize in offering one specific service.

Approximately 67% of U.S. based companies have expressed interest in a specialized management systems according to a study conducted by Bersin, the HR insight platform of Deloitte.

Finding, and in the right employee management system will allow businesses to track, manage, improve the efficiency of the staff, payment tracking, invoicing and other administrative tasks.

Why should businesses use employee management systems?

As discussed, finding and integrating the right employee management system will guide the owners and employees how to do their best work each day in order to achieve the larger goals of the organization. There are two ways that small and medium businesses can use an employee management system to their advantage:

  • Time Tracking and Employee Management

  • Automation of Administrative Tasks

Time Tracking and Employee Management

Time tracking is one of the most utilized features of an employee management system. Tracking time allows business owners, HR experts, or project managers to make sure that the working hours within the business are being spent as efficiently as possible.

Let’s assume that your staff is currently part of a project that is highly dependent on remote working. Under such circumstances having insight on the whereabouts of the employees while on the clock is important. Specialized time tracking apps have integrated location tracking features that keep business owners, and project managers updated on the staff’s location throughout the day.

In-depth daily insights

Moreover, time tracking apps will help your business identify time inefficiencies by automatically creating accurate timesheet reports. Using these reports, administrators will have accurate data on their employee's regular work hours, overtime and paid time off (PTO) - whether personal, vacation or sick leave.

The best part about time tracking tools is that they are extremely easy to implement into your businesses existing system. You simply install the app across the phones of employees and you can check it anytime from anywhere. In certain cases, when employees fail to clock-in the app, inefficiencies do result; hence, the responsible personnel has to make sure that employees do not forget to maximize the use of the app - even when they are working outside of the offices. Modern systems also include automated reminders and notifications that can be adjusted to the employee’s time and location. This feature ensures that employees do not forget about the importance of the app.

Automation of Administrative Task Assistance

In addition to time tracking, certain employee management systems are dedicated to helping business owners, HR teams, and project managers organize their operations. Besides having accurate data on the time employees work during a particular day, employee management systems are designed to assist in project management, finance, and more.

Whether it is Trello, Asana or another project management tool, automation is a process that businesses can no longer ignore.

How Do I Know What Employee Management System is Right for My Company?

The presence of different employee management platforms can make it confusing for you to choose the right platform. To understand which system or application will suit your business needs, you must first assess what the business needs are. This could be done in coordination with management, and HR representatives - who are the beneficiaries of an employee management system.

Do you want to track the time employees spend working? Or would you like to take away the burden of making monthly payments and tracking invoices? Based on your specific requirements, you will find a management system that will meet your wants and needs.

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