8 Reasons an Employee Management System is a Must for Small Businesses in 2024

Small businesses are slowly starting to feel somewhat more optimistic, moving from depression to acceptance phase, and adjusting operations to the new economic and public health reality COVID-19 created and rebuilding the damaged businesses. 

Many people are still working from home and managers have to keep them active and engaged from afar, but some companies are carefully trying out the “back to office” strategy.

In both cases, most employees are confused, they’ve lost their momentum after sitting at home for months, employee morale has dropped low to the ground due to all the bad news and uncertainty, and the usual workflows are broken.

At times like that, it is especially important to keep team communication flowing, the goals — clear, and the results — measurable.

But there’s more to that, than (just) a global epidemic. 

Generation Z, the people born between 1995 and 2012, now outnumber Millennials. They’re not only entering the workforce during an unprecedented time, but they’re also representing a massive shift in employee management and engagement requirements.

 The youngest generation of employees strives for a conscious choice of a workplace, learning opportunities; little-to-no paperwork struggles, and digital work-related communication. 

Capitalizing on these preferences by using a mobile-first employee management app can not only make your company more attractive to Gen Zers, but also more innovative and successful business as a whole.

Whether you’re a manager in a corporation or a small business, you know that employee management can make or break your company’s success. 

Happy, productive, and hardworking employees will drive you to success, whereas unmotivated, unhappy, and lazy employees tear you down from within company walls. And it’s no different if you only have 3 employees which are also outsourced. As soon as you have people reporting to you — that’s enough to care about them, otherwise, they won’t be helpful.

“Employees are a company’s greatest asset- they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company’s mission.” – Anne Mulcahy, former chairperson and CEO of Xerox Corporation

Until recent years, only corporations had access to employee management systems which allowed efficient real-time communications with the entire team. It was expensive and hard to customize, so only companies like Starbucks or McDonald’s could afford to have an employee management system.

That was until Connecteam, a leading employee management software solution, changed the rules a few years ago. And by 2021 this kind of employee management software is a hot trend that is turning into a must-have for any up-to-date business. And unlike most trends, this one isn’t going away anytime soon. 

Connecteam is an all-in-one solution for all company sizes, industries, and verticals, from corporations to small local businesses, built especially for mobile workers, and starts at just $29 per month. 

With an automated, efficient employee management system in place, your business can make use of its greatest asset – your people – to their fullest potential.

Start using Connecteam’s employee management system for free!

Running a small business in 2021 is a challenge on its own, so using such a system will automate your operational routine and let you focus on what really matters for your business.

With all of that in mind, this is why your small business should have an employee management system.

Out of 1,000 employees surveyed, 81% of employees said they’d rather join a company that values “open communication” over traditional benefits and perks. In addition, the survey reported that just 15% of employees were satisfied with how their company communicates with them. On top of it all, 57% of employees say they aren’t given clear enough directions and 69% of managers are not even comfortable communicating with their employees in general.

Effective communication leads to less confusion, provides your team with purpose, builds positive company culture, and creates accountability. 

But let’s not forget that communication in the workplace isn’t limited to just talking either. Managers have to create a platform where employees can be heard so you can genuinely hear their ideas, thoughts, and complaints. Such as:

• Visibility: Managers should be present. Let employees see you around the office and create an open-door policy to allow your team to easily approach you whenever is needed. (You can also block off certain days and times if you need but make sure employees know when this is.) Let employees privately chat with you via the online employee management system.
• Transparency: Share company announcements and updates with your team. Your employees shouldn’t hear about company news through the grapevine! Keep them up to date on all matters so they feel appreciated.
• Team building games: Gallup reported that companies with engaged employees usually earn 2.5-times more revenue. Team building activities help to enhance employee productivity and engagement as it promotes team bonding and communication. It may also help to break the ice between different groups if you have multigenerational employees.

Connecteam Tip: Managers need to create an environment that values communication which brings about higher morale and productivity and even lowers the turnover rate.

Managers and employees both dread annual performance reviews, even though they’re a key part of employee development and company success. Mainly because feedback tends to be one-sided as the manager has already made up his or her mind, employee bias, complacency and they can be time-consuming.

Send a private message to an employee to say “thank you” or “job well done on X”. Complimenting an employee with positive feedback shows them that you notice their hard work, that what they’re doing doesn’t go unnoticed. Waiting for the end of the year will only cause a missed opportunity, by providing feedback in real-time, you ensure productivity and morale is high all year round. 

To boost company morale, send a message to everyone that allows likes and comments to increase engagement. Brag about the employee of the month, what goals an employee met and surpassed, a glowing customer review about an employee, and so on. Don’t forget to mention private achievements as well, such as weddings, anniversaries, new babies, houses bought, etc.

Connecteam Tip: An employee management system allows managers to provide feedback in real-time, frequently, and in a robust format. Reports are viewed via a visual and actionable dashboard and dedicated work chat, which leads to constructive and efficient feedback.

It’s important to set a positive tone with a smooth and efficient onboarding process each time a new hire starts their first job. This makes things easier for the new hire and the manager in charge of training him or her. An employee management system effortlessly takes you through the process and ensures you don’t miss a step.

Send an update to everyone in the company with a picture and include fun facts about the new hire. Allow the rest of the team to comment so they can welcome them on board. 

Connecteam Tip: Make sure that all training material is available on the online employee management system so they can learn at their own pace and can refer back to materials whenever is needed. From the employee handbook to policies to safety procedures and more. Monitor their progress right from the system and send them a reminder if they forget to complete a section.

Monster reported 72% of employees don’t feel like their manager cares about their career growth. You must create a plan which allows your employees to grow into new roles, this will only help increase engagement and allows them to contribute even more to the company with their growing skillset. The following are options available to you: 

• In-house training, such as one-on-one or online programs.
• Employees can attend seminars and conferences.
• Development must be based on employee strengths and interests.
• Make training material available on the system or create a course on the solution that helps hone their skills and development.

Connecteam Tip: Keeping employees engaged and motivated about their future career path helps drive productivity, morale, and retention. 

Employee engagement creates a work environment where your employees are dedicated to their job role and in meeting the company goals, instead of mindless drones clocking in and out every day. Good employee engagement helps boost productivity, encourages better customer satisfaction, keeps your best employees around, enhances the company culture, and creates total success company-wide.

From an employee’s first day, you need to establish engagement and the employee management system can aid in this. As we already pointed out, you must gauge feedback from your team – ask them how they’re feeling, what concerns they have, where their satisfaction levels are, what ideas they have, and so on. For small businesses looking for effective solutions, check out our guide to the best free HR software solutions to support seamless feedback and engagement.

Connecteam Tip: Communication is a huge component of employee engagement, so share company-wide updates, celebrate the employee of the month, share positive customer feedback, highlight goals the team excelled on, and so on.  

An efficient employee management system can be customized to meet the needs of each department’s specific requirements so that reducing paperwork is possible. Why is this important? Firstly, on average, when forms are digital, your employees save 11 hours per week and business owners save six hours per week. This frees up a lot of time for both to focus on areas needed instead of drowning in paperwork. 

Additionally, there’s no hassle, it’s quicker, nothing is lost and you don’t have to squint to read illegible writing. Plus, it creates a smooth process: new employee onboarding forms, expense reimbursement forms, vacation requests, sick leave forms, safety reports, invoices, equipment checkout and more can be filled digitally from anywhere and will automatically land at your desk. 

Connecteam Tip: With an online employee management system, you easily streamline processes and ensure compliance.

An employee management system provides managers with insights into their workforce, and helps them to better plan and manage work hours to easily control labor costs and increase productivity.

Through a visual and insight dashboard, employees and managers have a direct and real-time record of absenteeism and the number of hours worked. Now, this allows your team to be more responsible and stay on top of punctuality and absenteeism before it turns into an issue.

Connecteam Tip: With an employee management app, employees can view current and past timesheets, can track PTO and overtime, can request time off, clock with a GPS time stamp, there are also more advanced features like geofencing and a time clock kiosk. Connecteam’s integration with QuickBooks Online and Gusto allows you to easily export timesheets for 100% accurate payroll.

An employee management system helps take away some of the pressure and stress that can fester between managers and employees. How? It helps create an environment that encourages communication and keeps employees and managers working together to meet company goals.

A positive relationship between employees and managers leads to better productivity, more efficiency, less conflict and better retention.

The number one reason employees resign, studies found, is solely based on their relationship with their manager and coworkers. If the relationship is strained then you’re faced with two outlines. One, the employee quits. Or two, the employee stays and the relationship becomes even more strained which can sour the work environment and company culture. 

Connecteam Tip: Maintaining a strong employer-employee relationship is key to the success of the company.

Summary: Why You Should Use An Employee Management System For Small Businesses

1. Foster open communication
2. Constructive feedback is easy
3. Create a smooth onboarding process
4. Help employees develop skills
5. Improve employee engagement
6. Less paperwork
7. Track time and attendance 
8. Better employee-manager relationship 

When managers effectively manage their team then they’re faced with a more engaged and productive workforce.

Using an employee management system helps make the entire process smoother. However, before investing in an online employee management system, write out your company’s needs and what features would best suit your business. This makes it easier for you to choose the best solution!