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Employee management software – Features, Tips, and More

Running a successful business, whether small or established, depends on a number of factors, such as efficient resource allocation, effective communication between management and employees, marketing, and adaptable strategies. Since there are hundreds of processes to take care of within an organization, technology like employee management software can be a great way to streamline employment-related processes. Such software allows more time for employers to work on improving their products and services.

What is an employee management software?
These are advanced tools used mainly by the human resource or hiring team to automate tasks related to managing employees. This can include onboarding processes, scheduling interviews and training, performance evaluations, and tracking employee progress. Organizations can also use them to make data-driven decisions to boost productivity and communication within the business.

Key features of best employment management software

Ideally, employment management software should have features like attendance tracking, scheduling, performance and report tracking, and more.

Time and attendance tracking
The software should be able to track employees’ active working hours, attendance, and time spent on different projects.
Seamless onboarding and offboarding
The exit and entry of employees within the organization must be streamlined in the software to reduce administrative burdens.
Scheduling
The system should streamline time-off requests and shift swaps to manage employee schedules, work shifts, and remote teams.
Hierarchical company views
Another feature that should be a part of web-based employee management systems is automatic upgradation and error-free tracking of the staff’s job titles, skills, salaries, and contact information.
Performance and report tracking
The reviews and feedback should be traceable and easy to access for each employee, and the system should also be able to produce reports on various HR metrics and regulations.
Employee satisfaction tracking
Along with performance tracking, the system should also be able to collate and analyze the results after taking employee feedback on job satisfaction. This also means it should have learning and training modules to avoid stagnation.
Payroll management
Scheduling and hour tracking should also have payroll tracking integrated into the software.
Training and development
The software should also act as a platform for employers to create training programs and track employee participation and progress.

Average costs of employee management software
While the cost of the software largely depends on customization, the number of users, and the software requirements, on average, a small business may have to spend about $350 to $1,000 a month on it.

Tips to choose the right employee management software for small business

Identify business needs
The first step is to assess the areas where the software can streamline processes and evaluate the time it can save. Create a list of must-have features and check which software best meets these needs.
Check for support and demo period
Ideally, employee management software should have active 24/7 customer support and a demo period during which one can test whether the software’s layout and interface are easy to use and suitable for one’s workflows and challenges. It should also have a user-friendly interface and a mobile application for easy access.
Look for HR automation
The software must automate most of the HR team’s manual tasks, such as attendance tracking, leave requests, and time management. This can help the team focus on employee engagement and strategic initiatives to boost organizational productivity and morale. If one has to build one’s own reports due to the software’s lack of proper analysis, then it’s probably not worth it.
Consider scalability
Each small business should consider the scalability factor before choosing a particular software. The technology should be able to handle more users, features, and modules and accommodate the rising demands of the business.
System integration is key
The system should integrate well into the organization, effectively sharing data across different platforms and aligning with other tools. In addition, it should minimize manual data entry tasks and data synchronization.
Provide security
Since the system will handle a lot of confidential data, including the employees’ personal information, security should be the number one concern. Invest in employee management software that doesn’t compromise on data privacy regulations.

Top 5 employee management software

1. Monday.com
The software offers over 200 templates, unlimited boards and documents, a free plan with basic features, and even a free trial period with full access. It can work for small business owners to test its functionality within the organization. With a minimum requirement of three seats, it costs about $8 per seat per month. Monday.com also enables direct communication between managers and their reports, helps with managing performance reviews and feedback, and other features.

2. Rippling
With a $8 per user per month, Rippling has over a thousand courses for employee training, many prebuilt workflow templates, and as quick as a 90-second onboarding facility. The PTO requests, time, and attendance management are also automated and have trusted cybersecurity features.

3. Sage HR
Recommended for its advanced performance tracking feature and reviews, Sage HR comes at a higher price point of about $200 per month for recruiting features. The software, however, offers a workflow builder and expense management and allows businesses to pay only for the features they need.

4. ClickUp
The software offers a free version and a paid one for $7 per member, per month. The organization is billed annually. ClickUp is more of a project management software and allows extensive customization with its interface. It also has many HR templates and allows the team to define individual roles for each employee.

5. Paycor
Best suited for medium-sized or scalable businesses, Paycor offers an all-in-one software for frontline managers, HR, and payroll. The software streamlines recruiting, onboarding, career development, and retention. It has multiple paid plans and unlimited payroll runs but charges separately for add-on features like tax corrections and check copies.

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