8 Reasons an Employee Management System is a Must for Small Businesses in 2020

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. 

“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

Now for a long time, only corporations had access to an employee management system which allows real-time access to creating a functional and efficient workplace. However, an online employee management system was super-expensive and the customization for business needs was incredibly difficult – that’s why only companies like Starbucks or McDonald’s had an employee management system.

Managing Staff Remotely: The Complete Guide (eBook)

In this free eBook, we highlight everything you need to effectively manage your remote employees. From communication tips to engagement ideas and more, this guide is filled with all the information needed to make remote work a success.

Download eBook for free

That was, up until a few years ago when Connecteam, a leading employee management software solution, changed the rules. Connecteam offers a complete all-in-one solution for all company sizes, industries and verticals, built especially for mobile workers and all for an affordable price that starts at just $29 per month (and there’s also a free plan!). 

When a company makes use of its greatest asset – their employees – to their fullest potential, that means it’s necessary to adopt technology, like an employee management system, to efficiently undertake management challenges, time constraints, employee dissatisfaction and more. 

When you use the online employee management system correctly and to its fullest potential, then you have an automated, efficient management system and a more robust and healthier work environment.

Start using Connecteam’s employee management system for free!


The benefits of Connecteam’s employee management system:

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


1. Foster open communication 

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 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.

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


2. Constructive feedback is easy

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. 

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 messaging system, which leads to constructive and efficient feedback.

feedback is key to effective management

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.


3. Create a smooth on-boarding process

It’s important to set a positive tone with a smooth and efficient on-boarding 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. 

Impact on Effective Onboarding Infographic


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. 

In addition, 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.


4. Help employees develop skills

employee development infographic


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.

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


5. Improve employee engagement 

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.

Building a Business Case for Employee Engagement (Infographic)


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 gage feedback from your team – ask them how they’re feeling, what concerns they are, where their satisfaction levels are, what ideas they have and so on. If the system has a suggestion box then ensure it’s available 24-7 so your employees can share their opinions, ideas and thoughts when the mood strikes.

Again, communication is a huge component of employee engagement. Therefore, you need to share company-wide updates, celebrate the employee of the month, share positive customer feedback, highlight goals the team excelled on, and more. And don’t forget to add a personal touch by celebrating birthdays and anniversary, send your congratulations on an employee who bought a new house or welcomed a baby, and more.


6. Less paperwork

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. 

why you should go paperless infographic


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 – think of it, digitally filling out new employee on-boarding forms, expense reimbursement forms, vacation requests, sick leave forms, safety reports, invoices, equipment checkout and more can be filled from anywhere and will automatically land at your desk. With an online employee management system, you easily streamline processes and ensure compliance.


7. Track time and attendance 

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.

why accurate time tracking is important infographic


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.

In addition, employees can view current and past timesheets, can track PTO and overtime, can request time off, clock with a GPS time stamp and if you need more advanced options like geofencing and a Kiosk, there are some online employee management systems that offer this as well. 


8. Better employee-manager relationship

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


To wrap it all up…

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!

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Connecteam is perfect for small business management

Connecteam is your tool to manage employee engagement, development, and relationship. You can streamline communication, give your employees a platform to be heard, boost engagement, strengthen the company culture, align employees with company policies, streamline daily operations, build professional skills and so much more.

Start for Free
New Overtime Rules Went Into Effect on January 1, 2020 - Is Your Business Ready?
State-Mandated Retirement Plans are Growing, Here's What You Need To Know
Get the best from your team Connecteam offers multiple communication and engagement tools to manage employees remotely Learn more
By continuing to use the website, you consent to the use of cookies. read more