8 reasons why an employee management system is a must for small businesses in 2025

Small businesses are slowly becoming a bit more optimistic, moving from the depression phase to the acceptance phase, adapting their operations to the new economic and health policy realities created and rebuilding the damaged businesses.

Many employees are still working from home, and managers must keep them active and engaged remotely, but some companies are cautiously trying the "back to the office" strategy.

In both cases, most employees are confused, having lost their momentum after sitting at home for months, morale has plummeted due to all the bad news and uncertainty, and the usual workflows have been disrupted.

In such times, it is particularly important to keep communication flowing within the team, to clearly formulate goals, and to make results measurable. But it's about more than (just) a global epidemic.

Generation Z, those born between 1995 and 2012, now surpasses the number of Millennials. They are not only entering the workforce at an unprecedented time but also represent a massive shift in the demands for employee management and engagement.

The latest generation of employees seeks a conscious choice of workplace, learning opportunities, little to no paperwork, and digital work-related communication.

If you leverage these preferences by using a mobile employee management app, your company will not only become more attractive to Generation Z but also more innovative and successful for your entire organization.

A cloud-based employee management system for small businesses

Whether you are a manager in a corporation or a small business, you know that employee management can determine the success of your company. Satisfied, productive, and diligent employees lead you to success,

while unmotivated, dissatisfied, and lazy employees bring you down within the company's walls. And this is no different if you only have 3 employees who are also outsourced. As soon as you have employees who report to you, it is enough to take care of them; otherwise, they are not helpful.

Until a few years ago, only companies had access to employee management systems that enabled efficient real-time communication with the entire team. They were expensive and difficult to customize, so only companies like Starbucks or McDonald's could afford an employee management system.

That was the case until Connecteam, a leading employee management software solution, changed the rules a few years ago. And in 2021, this type of employee management software has become a hot trend, evolving into a must-have for every modern company. And unlike most trends, this one won't disappear anytime soon.

With an automated, efficient employee management system, your company can fully leverage its greatest asset your employees.

employee management system

Running a small business in 2021 is already a challenge in itself. The use of such a system automates your operational processes and allows you to focus on what is truly important for your business. For all these reasons, your small business should have an employee management system.

Promote open communication

Out of 1,000 surveyed employees, 81% stated that they would prefer to work for a company that prioritizes "open communication" over traditional benefits and perks. Furthermore, the survey found that only 15% of employees are satisfied with the way their company communicates with them. Furthermore, 57% of employees indicate that they do not receive sufficient clear instructions, and 69% of managers generally do not feel comfortable communicating with their employees.

Effective communication leads to less confusion, gives your team a clear goal, fosters a positive corporate culture, and creates accountability.

However, we must not forget that communication in the workplace is not just about talking. Managers must create a platform where employees can make their voices heard so that their ideas, thoughts, and complaints can truly be listened to. For example:

●Visibility: Supervisors should be present. Make sure to be seen by the employees in the office and establish an open-door policy so that your team can easily approach you when needed. (If necessary, you can also specify certain days and times, but make sure the employees know when that is). Allow your employees to chat privately with you through the online employee management system.

●Transparency: Share company announcements and updates with your team. Your employees should not only hear company news from the grapevine! Keep them informed about all matters so that they feel valued.

●Team-building games: Gallup has found that companies with engaged employees typically make 2.5 times more revenue. Team-building activities help increase employee productivity and engagement as they promote cohesion and communication within the team. They can also help break the ice between different groups when you employ staff from multiple generations.

●Connecteam tip: Managers need to create an environment where communication is valued, leading to higher morale and productivity, and even reducing turnover rates.

Constructive feedback is simple

Both managers and employees dread the annual performance review, even though it is an important part of employee development and company success. Especially because the feedback is often one-sided, because the supervisor has already formed an opinion, because the employees are biased, because they are complacent, and because it can be time-consuming.

Send a private message to an employee to thank them or to tell them that they did a good job on X. When you give an employee positive feedback, you show them that you notice their hard work and that what they do does not go unnoticed. If you wait until the end of the year, you are just missing an opportunity. If you provide your feedback in real-time, you ensure that productivity and morale remain high throughout the year.

To boost morale in the company, you can send a message to all employees that they can like and comment on to increase engagement. Highlight the Employee of the Month, the goals an employee has achieved and exceeded, an enthusiastic customer review about an employee, and so on. Don't forget to mention personal achievements as well, such as weddings, anniversaries, newborns, purchased houses, etc.

An employee management system allows managers to provide feedback in real-time, frequently, and in a robust format. Reports are displayed through a visual and actionable dashboard and a dedicated work chat, leading to constructive and efficient feedback.

Create a smooth onboarding process

It is important to set a positive signal with a smooth and efficient onboarding process when a new employee starts their first job. This makes the work easier for both the new employee and the manager responsible for onboarding. An employee management system guides you effortlessly through the process and ensures that you don't miss a step.

Send an update with a picture to all company employees and include interesting facts about the new employee. Allow the rest of the team to leave comments so they can welcome the new employee on board.

Support employees in developing skills

According to Monster, 72% of employees do not feel that their supervisor is interested in their professional development. You need to create a plan that allows your employees to grow into new roles. This will only help to increase engagement and enable them to contribute even more to the company with their growing skills. The following options are available to you:

●In-house training, for example, in the form of individual lessons or online programs.

●The employees can participate in seminars and conferences.

●The development must be oriented towards the strengths and interests of the employees.

Provide training materials on the system or create a course on the solution to promote employees' skills and development.

Improve employee engagement Employee engagement

creates a work environment where your employees are committed to their tasks and achieving the company's goals, rather than working like mindless drones who clock in and out every day. Good employee engagement increases productivity, promotes customer satisfaction, retains the best employees, improves company culture, and contributes to the overall success of the company.

From day one, you need to foster employee engagement, and the employee management system can help with that. As we mentioned earlier, you need to measure your team's feedback - ask them how they feel, what concerns they have, how satisfied they are, what ideas they have, etc. For small businesses looking for effective solutions, we recommend our guide to the best free HR software solutions that support seamless feedback and engagement.

Less paperwork

An efficient employee management system can be tailored to the needs of individual departments, resulting in less paperwork. Why is that important? First: When forms are digitized, your employees save an average of 11 hours per week and entrepreneurs six hours per week. As a result, both gain a lot of time to focus on the necessary areas instead of getting bogged down in paperwork.

Additionally, there is no rush, it is faster, nothing gets lost, and you don't have to squint to read illegible handwriting. Additionally, it ensures a smooth process: Forms for onboarding new employees, expense reimbursement forms, vacation requests, forms for sick leave, safety reports, invoices, equipment checkouts, and much more can be filled out digitally form anywhere and automatically land on your desk.

Time tracking and attendance

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

Through a visual and clear dashboard, employees and managers have direct and real-time insight into absenteeism and the number of hours worked. This way, your team can act more responsibly and keep punctuality and absenteeism in check before they become a problem.

Better relationship between employee and manager

An employee management system helps to alleviate some of the pressure and stress that can arise between managers and employees. How? It helps create an environment that promotes communication and ensures that employees and leaders work together to achieve the company's goals.

A positive relationship between employees and management leads to higher productivity, greater efficiency, fewer conflicts, and better employee retention.

Studies have shown that the most common reason for employees resigning is their relationship with their supervisor and colleagues. If the relationship is strained, there are two possibilities. First, the employee resigns. Or the employee stays, and the relationship becomes even more strained, which can deteriorate the work environment and company culture.

Summary: Why You Should Use an Employee Management System for Small Businesses

●Promote open communication

●Constructive feedback is simple.

●Create a smooth onboarding process

●Support employees in developing their skills

●Improves employee engagement

●Less paperwork

●Time tracking and attendance

Better relationship between employee and manager When managers lead their team effectively, they have an engaged and productive workforce.

The use of an employee management system helps make the entire process smoother. However, before investing in an online employee management system, you should determine the needs of your company and the features that are most suitable for your business. This will make it easier for you to choose the best solution!