Top 8 Reasons Why Your Small Business Must Have an Employee Management System

employee management system

In every up and down of company performance, the significant contribution is from an organization’s most valuable assets, i.e., its employees. Employees can make a business profitable or could bring in more liabilities.

However, the bigger the organization, the more is negligence towards the employees. Smaller the company, closer attention should be paid to the employees.

Earlier, almost every organization had manual employee management processes, which were ineffective and resulted in higher employee dissatisfaction rates. But in the last two decades, advancements have been made towards helping employees to align with the organizational goal and contribute more while remaining motivated at work.

But most of the employee management systems are expensive and are not readily available to the companies. Those which are available do not provide an end-to-end solution.

Related: ONPASSIVE: The Future of Business Management

In this article, we would help you to identify features that must be available in an employee management system.

Main features of the best employee management system that could boost employee engagement rate are as mentioned below:

1. Open Communication Platform:

Team members and employees remain less productive when organizational goals, process changes, and updates are not shared on time for the employees.

Sometimes lack of transparency to such details could impact the overall performance of the business. Hence, employee management systems must have an option to communicate with employees. Such systems integrate with email delivery channels to send and receive messages essential for the business processes to operate.  

2. Feedback Submission:

In most of the companies, feedback is passed in unidirectional, i.e., top to bottom. But employee management systems allow 360-degree communication where both managers and employees could submit feedback for each other and as well as for their peers. This helps an individual member to identify strengths and areas of improvement.

3. On-boarding Capabilities:

The hiring process includes multiple sub-processes and requires on-time completion and status reporting. Thus, an employee management system allows you to initiate the hiring process as soon as the candidate information is uploaded, and the date has been scheduled.

Not only the hiring process, but when the person is onboarded, it takes care of the following activities: employee handbook handover, delivery of company policies, and safety procedures.

4. Employee Skill Development:

Studies suggest that organizations demonstrate up to 250% higher productivity when they integrate career development program in their system.

Employee management system would encourage employees to take part in their learning programs to enhance their skills required for growth and more opportunities. It also informs employees about upcoming events and conferences required for self-development and increasing visibility towards company objectives, thus helping in aligning employee goals with the organization.

5. Improve Employee Engagement:

When employees are motivated, they are most likely to generate high productivity and reliability. It works as a cycle because when employees are delivering more, and they have visibility of their position in the team, they remain motivated for a longer time.

But for this, managers need to provide a platform to submit concerns and innovative ideas. Employee management systems allow managers to receive such engagements from the employees and also creates high transparency of the on-going activities.

6. Paperless Process:

Such systems encourage companies to go digital. Every document, files, and information shared is on employee management systems, which has statistically helped employees to save 11 hours per week and business hours save 6 hours per week. On top of that, it helps in reducing the cost of paperwork because business activities are conducted digitally.

7. Online Time-Tracking and Attendance:

As soon as employees log in and log out, employees could use these systems to punch-in and punch-out, thus enabling tracking of employee punctuality and absenteeism. Leave application and over-time could also be tracked using these systems.

8. Employee-Manager Relationship Building:

When employees have transparency and clarity of goals, then they tend to perform higher and according to organizational objectives. In such a case, there is less chance of employee-manager friction. Also, when the feedback is shared and discussed according to goals created in agreement with both the parties, then most of the one-on-one discussions are productive and highly qualitative.

So these eight features should be your high priority while deciding which employee management system is the best for your organization. In case you need to have an automated employee management system, then we recommend you to join GoFounders, which will allow you to access ONPASSIVE’s AI-driven employee management system.

The tool not only covers the features as mentioned above but also automates every activity included in the employee engagement process. It provides a dashboard that provides minute details at each level of the employee hierarchy and also generates scores as per how actively employees using this tool for their growth.

Related: Contact Management Systems: Tools to Store, Update and Add Customer Details

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