HR Mavericks

Eddy’s HR Mavericks Encyclopedia

Employee Management Software

One of the key roles of HR is managing and securely storing employee files. As technology has become more prevalent, these files are now being stored in employee management software. Would EMS work for you?

What Is Employee Management Software?

Employee management software (EMS) stores and analyzes anything and everything, from contact information to performance evaluation, about a company’s employees. Looking for employee management software? See if Eddy is right for your company

How Is Employee Management Software Helpful for HR?

Every company needs a system in place to track, store, and manage employee files. Having an EMS package in place makes that job much easier for HR. Finding the right employee management software for your company is important for the following reasons.
  • Automation. Automating HR processes saves you time and prevents mistakes. For example, automating payroll or benefits administration saves countless hours over doing it manually, and using software over spreadsheets to run payroll decreases errors in calculation. Your EMS can also trigger you for various deadlines and tasks.
  • Store employee information. If you don’t have an employee management software to store your employee’s information, you are likely relying on filing cabinets, saving files on your computer, or tracking information in a spreadsheet. Using employee management software centralizes the information, allows you to access it anywhere, and stores it in a clear and secure way that allows data analyzation.
  • Improve employee experience. Spending less time on administrative duties allows you to put more focus on the employees. This leads to a more positive employee experience. Most employee management softwares also offer different tools to track and measure metrics that HR can use to make analytic-driven decisions to improve the employee experience. For example, you can track when employees are quitting from your company. If you notice that a lot of them are within their first 90 days, it is likely due to their onboarding experience. Using the data you found, you can improve the onboarding experience so you can improve your turnover rate.

Common Features of Employee Management Software

Each EMS has different features, but most share some in common. Here are some of the more common features found among employee management softwares.

Employee Database Management

The most basic thing an employee management software does is store employee data. This database is where you can find employee’s personal information, as well as job info such as job title, department, location, etc. This feature allows you to add new employees in a few easy steps. All current and former employees should be found in the employee database.

Time Management

Another basic feature in all employee management softwares is a time management tool that allows you to track employees' time worked, time off, and leaves. This makes it easier to pay employees, as their timesheets are all in one place and are updated automatically.

Self-Service Portal

The self-service portal is where employees can log in to see their time sheets, clock in/out, access their pay stubs and benefits information, and request time off. An employee should be able access and edit the personal information. A portal can also be used to make company-wide announcements or list various links (such as benefits, company website, or company perks).

Performance Management

One of the more robust tools in EMS is the performance management tool. It’s a tool that allows managers and HR to be on the same page when measuring employee’s performance. This tool can be set to trigger performance reviews as frequently as the company wants. It can also provide the outline of what those reviews look like and store all the information from the review.

Tips for Choosing an Employee Management Software

When it comes time to choose an employee management software for your company, there are a lot of factors to consider. There is no “one size fits all” employee management software, so it’s important to consider your company's needs. Here are some tips to help you make the best decision.

Tip 1: Look at User Reviews

There are hundreds of employee management softwares out there. Most companies nowadays have one. All of those companies have gone through what you are going through now, trying to decide which of them is right now. One of the best ways to learn from their experience is through user reviews. Looking up user reviews on different employment management softwares can help you understand the pros and cons of each. Some review sites include Capterra, G2, Softwareadvice, and Gartner.

Tip 2: Ask the Right Questions

When researching employee management software, you’ll have the opportunity to view demos. It can be difficult to keep track of each of them and determine which one is the right fit for your company. You should have a set of questions you ask each of them to see if it is the right fit for you and be able to compare your choices. Here are some questions you might consider asking.
  • What size companies do you typically deal with?
  • What makes your software different or special from others?
  • How do we get started with the software?
  • What features do you have?
  • How much customization is there?
  • What might it look like for our company?
  • Do you have a mobile app?
  • What support do you provide?
  • How much will it cost for us?
  • Do you do payroll and HR, or will we need separate systems?
  • What systems does your EMS integrate with?

Tip 3: Evaluate Your Current Processes

One part of determining the right employee management software for you is taking a look at your current processes and seeing where they need to be improved. How will an EMS affect them? Are there some complicated processes you have in place that the new system will need to be able to handle? Are you wanting to change that process or simplify it? How much change can your department and your company handle at once? Those are all things you’ll want to consider when evaluating your current processes and determining how new software will impact them.

How Can HR Effectively Implement Employee Management Software?

Implementing new employee management software takes a lot of time and effort from the team. In order for the transition to be as smooth as possible, here are some steps the company should take.

Step 1: Identify Company Needs

Whether it’s because you weren’t using a software previously or the previous one wasn’t delivering on your company’s needs, you need a list of what features you're looking for. These might include being able to handle multiple company locations, remote workers, international employees, separate payrolls, etc.

Step 2: Project and Plan

After determining your needs, plan when you need the new system in place. Figure out a timeline of when you will look at new systems and when a decision will be made. Next, consider how the new system is going to affect each department. What processes will change? What training and support will be necessary? Who needs to have input on your decision? How will you lay the foundation for buy-in and a smooth transition process?

Step 3: Practice and Train

After you have done your homework and decided on the EMS you will be using, you will want to practice as much as you can in the new system. Before you show it to the rest of the company and train them on the new system, HR should be experts on how the system works. In this step, try to iron out all the kinks and understand all of the features the software has to offer. Typically, the software company will train some of your company’s employees to become “experts.” Those employees train the rest of the company. Train small groups from each department. GIve these employees a chance to learn the new software and ask any questions they might have. Employees will likely give some pushback on needing to learn a new system, but helping them understand the value this new software will bring can go a long way in getting buy-in from them. How long training will take depends on the size of your company and if this is your first time implementing an employee management software or if you are changing softwares.

Step 5: Implementation

After a lot of software testing, determining what new processes will be necessary, and what selecting features you will utilize most, the software needs to be implemented. This is when all your current data is transferred into the software and employees are given the necessary user set-up. This is also when all employees now have access. Although you can still request minor changes at this point, the core interface of the system is set.

Step 6: Seek Feedback

After implementation, questions will arise. Employees will come across issues on their own that need to be addressed, or bugs may arise in the software. This follow-up step is important so employees have a chance to provide feedback on their experience with the software, the good and the bad. Using this feedback, you can work with the employee management software to resolve those issues.
Tanner Pierce, PHR

Tanner Pierce, PHR

Tanner has over 4 years of HR professional experience in various fields of HR. He has experience in hiring, recruiting, employment law, unemployment, onboarding, outboarding, and training to name a few. Most of his experience comes from working in the Professional Employer and Staffing Industries. He has a passion for putting people in the best position to succeed and really tries to understand the different backgrounds people come from.
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