Benefits of Investing in an Employee Management System in 2020
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Benefits of Investing in an Employee Management System in 2020

Employees are the backbone of an establishment, only if you properly use your resources. It’s not always easy maintaining so much data and paperwork for so many employees. 

Besides, manual processes generally end up with an error or two that can lead to an administrative nightmare. The solution to all this lies in investing in an employee management system. 

Routine task management and challenges 

There’s so much involved in a Human Resource department’s everyday task management. It involves recruitment, training, development, performance management, and can sometimes get mundane and repetitive. 

employee management program
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For example, when it comes to recruitment, many resumes have to be matched with the job description. This can get pretty repetitive and boring, especially if done manually. 

In addition to all of this, there is the paperwork involved which is both time consuming. Besides, there is a high chance of errors occurring if done manually. Lots of time is also spent delegating work to the right team members, working out goals for the year and time management. 

An employee management system online helps improve your work and time efficiency by taking care of, and reducing the mundane and repetitive tasks. 

 

What is employee management system?

In short, an employee management system (EMS) helps streamline HR’s tasks and overall business department duties. It can handle most important operations in an establishment like employee timeshare, leave requests and even staff geo-location in work hours. 

There are so many systems around; that you will have to spend some time looking for one that saves your money, time and headaches. You can focus on other more important tasks once the EMS takes care of repetitive and mundane tasks. 

You generally have to look for the best employee management system that comprises of the following features:

1. Payroll management system

This system keeps track of your employees’ payroll and other monetary related work like payment tracking and invoicing. So many employees are paid varied salaries and take periodical leaves. 

The system can help reduce your stress while determining the final amount to pay them. It also helps keep track of all the business expenses so that you know where your money comes from and goes. 

2. Database management system (DMS)

A DMS not only stores all your employees’ relevant data but also keeps it updated. You no longer have to manually look up each employee to update any new information.  

3. Types of employee management software

There are different types of employee management software divided based on the business area. They include:

  • Time management software

This software keeps track of working employees, all completed projects, budgets spent and team productivity. The most productive team is one that achieves more with fewer disruptions. 

Time Management Software in employee management program

 

Some software also offers payroll and invoicing features to pay members directly for the hours they work. There are others offering location tracking and PTO (paid time off) balance features. 

  • Performance management software

This software helps keep track of your employees’ work to periodically motivate them. Motivation makes them feel more committed to working for you. One of its key benefits is to make the employees feel important and engaged in the process. 

It thus keeps your team busy while they deliver high-performance. 

Performance Management Software
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4. Employee management system documentation

This system helps with your employees’ documentation like certificates and important data. It also keeps updating the data whenever changes are made to each employee’s documentation. 

5. Human resource management system

You can find people to hire for your company through the tons of hiring platforms available online. The difficult part lies in managing all the information that you collect once they are selected for your team. This is where an EMS proves helpful to you. 

 

Benefits of employee management system

There are a host of benefits that highlight the scope of employee management system in your establishment. They are:

1. Routine task management 

Most HR managers end up spending valuable time on everyday tasks. Examples are dealing with paperwork, taking care of and filing employee data and replying to queries. Besides, manual processes for managing employees have an improved chance of a human error occurring. 

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An EMS takes care of most of an HR’s paperwork. It helps standardize employees’ information and related processes like licenses, their certifications and education, skills, performance, any changes made to salaries and hiring process. 

It also helps speed up the documentation process by keeping all employee related information in a single place. It then uses the information collected to quickly create documents. There is no need to go through so many files to create documents like employee ratings and stock plans. 

An EMS plays an important part in effective time management too. It helps save time because all important data is kept in a single place to later decide upon and delegate the employees’ respective tasks. 

2. KPI monitoring

 The Key Performance Indicator is a value that indicates how well your workers are working to reach their individual business goals. It’s based on the KPI that the business knows how well your employees can help you reach your business goals. 

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However, businesses have to measure not all, but only a few important KPIs like: 

It’s a known fact that an employee’s work interest tends to reduce if they are not promoted for quite some time. KPI monitoring tells HR managers how long an employee has been in the same position. It also suggests or rather reminds when it’s time for a promotion.  

Employee retention indicates the employee’s job stability in the company. Some employees who quit may end up a loss to the company wherein the company has to hire someone else. The system helps monitor which talent has to be retained for overall increased productivity. 

KPI also divulges how many days the employee has been on leave because of sickness or something else. It also helps to effectively track the employees’ attendance and time worked without any errors or confusions. 

Time management KPI measures the workforce’s efficiency and how long an employee takes to reach some goals. 

3. Employee management 

EMSs help with time and attendance management to keep track of work hours. It ensures employees who work overtime are paid for their work. It’s difficult for HR resources to monitor everything without the right system. 

Employee management systems in Malaysia and across the globe help with training management too. It tracks and reports employee training courses and programs. It takes care of everything like organizing training regimens, grading, scheduling and maintaining records. 

The system also offers the benefit of managing the payroll. This is essential because payroll errors can lead to a company’s downfall. It performs tasks like calculating paychecks and accurately controlling the payment schedule. 

Employee management system software helps assess an employee’s performance. Instead of monitoring an employee and saving feedback for a year, these systems give a complete evaluation as and when necessary.

Besides, maintaining an employee’s performance data helps inflict positive effects on their performance. Performance management information also provides some insight into an employee’s earned compensation and rewards and their professional goals. 

4. Hiring

The EMS can help improve your company’s hiring process procedure. It increases efficiency by keeping a tab on the hiring process and company progress. It also clarifies an employee’s role and helps newcomers settle down. 

Hiring
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5. Self-management by employees

Self-management by employees offers huge benefit in modern EMS software. Employees generally have lots of questions to ask about the job’s terms and conditions, their leave, salaries and other things. 

It’s not practical for the HR team to personally answer all the questions, especially to hundreds of employees. This is where employee management software helps. 

Employees can now easily get answers for queries like their paid time off and sick leave. They can also find out through the software if they can work from home or not. Not only is the software easy to use, but each employee has an account to use to access the necessary information. 

6. Cost management

Not many may realize that an EMS will also help with cost management. It helps reduce a company’s running expenses. You just have to pay for the software, and then it does the job of so many people.

Instead of having an employee manage your employees’ monthly payroll, it’s cheaper automating it. Though you may have to pay initially for the software, it’s equivalent to paying employees a few dollars a month. This is definitely lesser, and cheaper than hiring an additional employee!

Besides, with the EMS in place, you don’t even have another person to track the employees’ absenteeism and attendance. The system takes care of all this at a much more reasonable cost. 

7. Accuracy

Human error can lead to lots of confusion and inconvenience in an organization. This is best avoided through an EMS.

With all the HR tasks automated, the chances of any typical mistakes occurring like repeat entries are greatly reduced. Besides, the software also lets employees double-check whatever is entered for any mistakes and possible typos. 

8. Data safety and security

An EMS is really great at keeping employee data safe. It also prevents the misuse of data or its access by unauthorized users and hackers. It also has payroll functionality which is a secure way of processing the payroll. 

Some may even conduct weekly vulnerability scans and yearly penetration tests to ensure data security. The software also prevents the risk of data loss by keeping all documents in one central location,which is the cloud. 

 

Implementing an employee management system

Implementing new administrative changes in an organization is never easy. There’s so much involved. Lots of time has to be spent on the implementation which includes training, organizing and transferring documents. 

A better way to implement changes is through a web-based system like an EMS. The system lets the change be carried out in batches or increments. 

You can start by training your team members in easy, visual and short sessions. This way they won’t feel confused, or find anything difficult to understand. The next step lies in the system’s actual implementation. 

You can have your employees gradually transfer all your documentation, tasks, plans, assignments, media and other relevant data into the system batchwise. With all the data in the system, employers can now easily access any tasks or documents online and work from there. 

Make sure that everyone can easily access any documentation you may have about the system’s implementation. This makes it all the more easier for users to understand and start using the software. 

This is all that’s needed to implement your system without too much administrative work. Work at gradually introducing the digital system while transferring from a manual one. Once everything falls in place, you will see a marked reduction in the hours your team spends on tedious tasks. 

 

Conclusion 

Streamlining the human resource department will go a long way an improving your firm’s performance. It will help create a conductive working environment and even improve your workforce’s performance through KPI monitoring. 

It even helps you save lots of time and money and even prevent possible human errors and complications. With so many benefits associated with a modern open source employee management system in a business, there’s no reason why you shouldn’t try one.

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