Manufacturing Automation

Why You Should Invest in an Employee Management System

Jun 22, 2019

Labour is one of the major resources of an organization. To ensure things run smoothly, you will require an employment management system. This is essential for growing businesses because of issues such as scaling, process automation, and workflow optimization. As the number of employees increases, controlling the workforce becomes even harder.

The employment management systems help in ensuring that all payrolls are done in time as well as daily activities.

Here are the top benefits of having an employment management system;

Handling Routine and Tasks

In many firms, the HR department is always in a dilemma. The managers want to improve the work environment of the employees, but they are caught up in processing paperwork and daily administrative tasks like answering questions and employee information. To address this issue, a company can use an employment management system.

Here is how the program can improve productivity;

Reduces paperwork. An employment management system eliminates any kind of paperwork that the HR department needs to do. This is through the standardization of the employee information such as certifications, employment history, education, skills compensation information as well as other factors such as changing salaries, hiring, and more.

Quickens the creation of documents. Having to go through a stash of documents to come up with a new document can take a lot of time. With all the employees’ data together, it is easier to create stock plans and employee rating.

Saves time. The employee management system saves time by ensuring all the documents are safe and structuring all administrative tasks.

Monitors KPIs

A Key Performance Indicator (KPI) helps in measuring the effectiveness of employees in achieving their objectives in an organization. A firm should only measure what is valuable, and the system can automate this process.

Here are the most vital KPIs that a company should not ignore;

Duration in the position. Well, practice makes perfect, but the employees’ productivity reduces when they stay in one position for a long time. The employee system will alert HR when employees have stayed in the position for a long time, and it’s time to promote them.

Employment retention. Having to hire new employees all the time is bad for the company. There are a lot of resources used to recruit and train new individuals. The HR monitor program will help observe the best strategies to maintain talented employees and boost the company’s productivity.

Absenteeism. It’s the small leaks that sink a ship; you may be busy searching for solutions to improve your firm while monitoring the sick leaves, delays, and other absenteeism causes can be a game changer.

Time to achieve goals. Measuring how much your employees take to accomplish a goal after committing to it helps the management to rate their employees.

Efficient Employee Management

Every firm has activities that they repeat daily, automating these processes can improve the overall efficiency of a company. An employee management system makes it easy to automate business workflows, centrally collect the employees’ data, and add visibility through the use of graphs and charts.

Major features of the program that can help improve the employee workflow and management include;

Time & attendance management. Time is a very important factor in the production process. Without an HR monitor, it is hard to measure the work hours of employees accurately and fairly compensate them for working overtime.

Training management. It is essential that your employees keep learning to perfect their skills. The employee management program helps in tracking and reporting instructor-led training programs and employees’ courses. It organizes the grading, schedules, training curriculums, and history.

Payroll. We will all agree that financial matters in an organization is very crucial, and one mistake can cost the performance of the company. It is therefore vital to ensure the payroll is well managed to avoid losses.

Performance management. Traditionally, employees’ performance is only done in one year, at the end of a business year. Compiling all the information to determine their contribution is a lot of hustle, and it could lead to inaccuracy. The employee management system gives 360-degree feedback, which is likely to motivate your employees. This is because you can use the data to compensate or reward employees, which enhances competition.

Hiring and Onboarding. How long does it take for your new employees to adjust to the firm and all their activities? If it’s taking too long, you will need an employee management system. The program will improve the onboarding process by:

  • Ensuring the role of every employee is clearly stated
  • Making new employees feel at ease
  • Controlling the process
  • Allowing the firm to monitor the progress

Improving the Employee Self-Service

Some software in the firm will only work best when incorporated with others. You may realize that an employee self-service portal may not be helping the firm. Employees have detailed questions relating to their conditions, salaries, work, etc. The HR may not be able to answer the questions of all the employees individually.

An automated employee management system ensures that the employees do not feel ignored, and they can do much by themselves. The system may allow them to see their paid sick leave, available paid time off, or their ability to work off the premises. The program also provides all the individuals with a personal account to check any required information.

Saving on Costs

Any opportunity to reduce the output while maximizing on input is a chance that cannot be ignored. Investing in the employee management system will save your firm a lot of money. For example, you will not need papers for documentation anymore as you can go digital.

Take an example of a firm with 100 to 300 employees, a study by Sage showed that the average cost of HR system cost per employee is $1 to $3 per employee, which is less than an HR manager’s salary per month.

Companies also need a professional to monitor the leaves and attendance of employees for payroll management. Instead of hiring someone to do this, a firm could go for an employee management program.

Eliminate Human Error

Human beings are bound to make errors at some point, which may cost the firm unnecessary costs. This may be issues of double entry or typos. Automated human resource programs give managers a chance to double check their work.

Offers Privacy and Data Security

As an employer, you must ensure that the private data of your employees do–does  not land in unauthorized hands. An employee management program ensures this doesn’t happen by encrypting data, storing it to internal hardware, and using password authorization.

Relying on papers to store sensitive information increases its vulnerability. Remember, the human resources department has become the main target due to social security numbers, personal information, and bank account.


The human resource department is one wing of your company that affects the performance of the firm. Despite the perfect plan you may have, without a good workforce, it is impossible to accomplish the goals.

Investing in an employee management system will create a conducive working environment when there is a free flow of information, communication, and confidentiality.

The system will also enhance the performance of your workforce through tracking their KPI not to forget the reduced human errors.

You simply cannot compete with your competitors without an employee management system.

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