5 Advantages of an Employee Management System

As a business, your employees are your most important asset. You may have sophisticated systems and well-thought-out procedures but such infrastructure is impotent if it isn’t overseen by competent, motivated and well-managed staff. Managing employees isn’t easy but like any other business process, it can benefit from digitization and automation.

Employee management systems such as Humanity can help your organization break free from tedious and error-prone to-do lists and other manual administrative tasks. Here are some of the benefits your business stands to reap when it implements an employee management system.


Improved Workforce Management

Whether you are running a startup with under a dozen staff or are in charge of a global multinational company employing thousands, banking on manual processes to monitor and manage your employees can quickly spiral into an administrative quagmire. Tracking employee data by hand not only raises the likelihood of errors but also leaves your business vulnerable to legal and regulatory risks.

In addition, data won’t be available to all stakeholders in real time meaning you are never really sure if the information you are looking at is the most current. An employee management tool makes employee information work for the business and not against it.


Increased Employee Engagement

The reason your staff is such a valuable asset for your business is that, unlike lifeless objects such as buildings, computers, and software, they have agency. No organization can realize its full potential if it doesn’t create an environment in which management continuously engages with staff.

Employee management systems are a powerful facilitator of employer-employee conversation. By creating a platform for evaluating and tracking staff development, managers can partner with workers in goal setting, motivation and the development of a viable career path. This degree of stimulation eventually improves worker retention.


Securing Employee Data

Companies hold sensitive information about their employees. Remuneration records, bank accounts, social security numbers, driving license numbers, phone numbers, mailing addresses, spouse and dependent details are examples of employee data that shouldn’t fall into the hands of unauthorized persons.

If such information is held in spreadsheets or paper tiles, it could be easily accessed or modified by hackers and extortionists. A human resource system centralizes access control where users can be assigned privileges based on their responsibilities. You can also apply other security mechanisms such as two-factor authentication and encryption that make it harder for an intruder to access employee information.


Ensure Compliance

Employers have certain legal and regulatory obligations to staff and staff information. For example, depending on the industry you are in, you may be required to produce a specific record on short notice during a regulatory audit. Failure to do so could see you incur a penalty in thousands of dollars.

Yet, compliance can be a minefield with organizations constantly trying to keep up with new rules that apply to their industry. Employee management systems make it easier for businesses to capture, document, analyze and report employee information as and when needed. The data is current so there’s little worry that the information provided to regulators or auditors is outdated.

You can generate complete W-4s, I-9s and other tax and compliance documents in little more than a couple of clicks. Some employee systems even have proactive notifications that alert you when a record needs to be updated.


Metrics and Analytics

The power of employee management systems is primarily in their ability to capture, organize and store worker information in a convenient electronic form. But this power isn’t fully exploited if the data collected can’t be analyzed for invaluable insights that can help resolve hidden or deep-seated business challenges.

These challenges include excessive headcount, too much overtime or unusual staff turnover in a particular department. Metrics and trends could be the trigger needed to drill down to the root cause of a problem. Data removes ambiguity from conversations and allows frank fact-based dialogue. Such transparency can only be good for the organization’s bottom line.

Employee management systems can free management and HR staff from time-consuming administrative tasks so they can concentrate on the innovation needed to drive the business to the next level.