Within any business organization, there are typically two critical functions that leadership must attend to. The first is the business of selling a good or service in order to make a profit. The second is the business of managing the people, teams, and processes that allow that good or service to be sold.
Both functions are critical. A business cannot survive if the two do not work hand in hand. So while the first function may make you headlines and catch the attention of the media, it’s the second function, the people management, that will help you win in the long run. To ensure excellence in this area, you’ll likely employ people management software to do the job.
What is People Management Software?
People management software (also referred to as human resources software), combines a suite of technology tools that allows your business to manage tasks, projects, and workflows related to the employees in your organization.
People management software provides the ability to automate, streamline, and optimize the things your employees do every day. For some, it might be clocking in and out of their scheduled shifts. For others, it might be requesting PTO. And of course, managing functions like payroll and benefits will be key across your entire company.
Reliable people management software can play a vital role throughout the entire employee lifecycle. From hire to fire, you can use people management software to reduce the amount of time and effort spent managing employees. This becomes a major cost saving when implemented correctly.
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How Do I Evaluate People Management Software?
There are many products and services on the market today that you may find useful when evaluating people management software. In order to make the best decision for your company, consider the following questions?
- What is my budget?
- What do I need the software product to do?
- Where are my biggest pain points?
- How much time will this save me?
- How much money will this save me?
- How long will it take to implement the software?
- Will the software grow with my company and be reliable long-term?
Of course, every one of these questions will have different answers depending on the size, scale, and ambitions of your company. For example, companies who rarely hire new employees can likely forgo hiring and onboarding software tools that some people management software products offer. Instead, they might choose to focus more on features like payroll management and employee performance tracking. Companies that hire a lot of hourly workers will likely want to choose a software product that has time-tracking and scheduling capabilities.
The first step to selecting the right people management software for your company is to understand the needs of your business.
What Features Are Found in People Management Software?
The list of features you may find in people management software is long. This is why we recommend understanding the core needs of your business before making a decision on which software product to use.
Additionally, there are many types of people management software. Some software products focus solely on a single aspect or feature of the employee lifecycle. For example, there are tools built specifically to help you hire new employees. Other software products may combine multiple features and functions into a single product. These all-in-one people management solutions are a bit more rare, but often provide more bang for your buck.
Below, we’ve made a list of the most common features you’ll find in people management software:
- Employee directory
- Employee profiles
- Employee document storage
- Company document storage
- Electronic signatures
- Time off policy creation
- Time off tracking (with ability to approve and deny requests)
- Time clocks (clock in, clock out)
- Training tracking
- New hire onboarding
- Performance management
- Goal management
- Compensation management
- Org charts
- Payroll management
- Benefits tracking and administration
- Post jobs to job boards
- Manage job candidates
- Internal communication tools
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What Kinds of Businesses Use People Management Software?
In our experience, we’ve seen that people management software is useful to almost any business, regardless of the industry they operate in. The type of tools you’ll need will depend largely on your company’s stage.
For young companies that are just starting out, you may not need anything more than payroll software to get started. After all, with only a handful of employees, most everything else can be managed in-person, with spreadsheets, or on physical documents.
As your company grows, these manual operations tend to breakdown and the amount of time and effort spent keeping them afloat does not have much of an ROI. As companies mature and grow, their processes often need standardization and optimization to keep up with the pace. At this stage, more tools such as hiring and onboarding features, time-tracking and PTO tracking, as well as employee profiles and directories become critical.
When companies grow even larger (often beyond 100 employees or more), there are new people management challenges to tackle. At this size, you’ll want tools to help manage and project your org chart, set goals and performance metrics for employees, and do large-scale evaluations of your people operations.
As you can see, almost every business will use some flavor of people management software. The tools and feature set needed to support the business will ultimately depend on the company’s size and ambitions.
Where Do I Start?
If you’re looking to learn more about people management software and want to see if it’s right for your business, you may consider using Eddy. Eddy is an all-in-one people management software platform that has been designed specifically for small and mid-sized businesses.
The Eddy suite of tools is expansive and easy to use. We’ve got just about everything you’ll need to manage employees throughout the entire employee lifecycle. From hiring to onboarding, time tracking to payroll, and everything in between, Eddy is an affordable option for companies looking for a people management solution.