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Everything you need to know about Employee Management

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Would you like to learn more about effective employee management?

In this article, we will cover everything you need to know to effectively manage your employees. We highlight valuable tips for improving your employees' productivity and give you some great tools to implement them.

Here is the content of this article:
  • What is employee management?
  • The four main benefits of managing your employees
  • Five tips for effectively managing your employees
  • Five tools to help you manage your employees

What is employee management?

Employee management is a process that helps your employees to perform at their best and achieve your business goals. It is a holistic process that covers almost everything that has to do with human resources, such as hiring new employees, salary administration, performance management and much more.

Employee administration covers three key areas:
  • Acquisition - finding and hiring the right candidates
  • Commitment and retention - Ensuring that your employees are happy, committed and stay as long as possible! This is achieved through active communication to understand and respond to your employees' needs and concerns
  • Performance Management - Measuring and conducting performance reviews to help them improve continuously and reward good work

The 4 main advantages of managing your employees

Here are three advantages of implementing an effective employee management system:

Improves the efficiency of your work processes

If you manage your employees effectively, you will have no trouble streamlining workflows.

And how?

Think about the three aspects we mentioned earlier

You'll be able to do it:
  • Hire people with the right skills for the job
  • Easily monitor your activities to make sure things are going well
  • Communicate effectively with them to ensure that they understand the project requirements
  • Congratulate them on the good work they have done and encourage them to continue motivating them
  • Intervene effectively when things do not go according to plan

This way, you have the right people and procedures in place to ensure that things always run smoothly!

Increase the productivity and motivation of your employees

An employee who feels unappreciated will feel indifferent to their work. Therefore, the productivity of employees can be increased considerably if they feel appreciated.

An employee management system helps you to get in touch with your employees on a personal level and get their feedback on various business policies and processes.

This helps them to believe that their opinions are valued and taken into account in business decisions. This in turn improves employee engagement, as they now feel they have a say in the company!

Ensures the security of your data

This aspect used to be important only in certain sectors such as financial services, law, companies investing heavily in R&D, etc. - where data security is paramount.

However, with the growth of remote teams, this aspect is becoming increasingly important in all companies that have remote employees.

Most companies manage tons of important and confidential data every day.

So how do you ensure that these important files and documents remain secure?

By carefully monitoring and managing your employees!

A strong employee management system can help you keep track of documents and other data. It connects each employee to the documents they are responsible for and reduces data processing inefficiencies. This way, you no longer need to worry about the security of your data!

Lower costs for employees

Staff turnover is one of the most expensive costs that most companies incur. According to a CAP study, the average cost of replacing an employee is 6 to 9 months of his annual salary.

To put this into perspective: If you want to replace a manager who makes $40,000 a year, you have to spend $20,000 to $30,000 on recruitment and training costs!

Fortunately, employee involvement can help.

Remember that effective leadership leads to happier, more committed employees.
In this way, they will be more motivated and more satisfied with their work. And if your employees are happy at work, they are less likely to leave!

Five tips for effectively managing your employees

Here are five tips for effectively managing your employees:

Adopt an open communication policy

Did you know that 81% of employees prefer a small company that values "open communication" over benefits such as gym memberships and free food?

But effective communication is not just about talking underwater. As a business owner, you need a structured system that allows your employees to voice their concerns. And this is how you can do it:

A. Be visible & transparent
Let your employees know that you are always available to talk to them by maintaining an open door policy. Show your face often in the office and show real interest when you talk to your employees. It is important to let your employees know that their needs are your top priority.

Share information about the company directly with employees, such as your plans for the next quarter or news about a big deal you want to land. This will make your employees feel more involved in the decision-making process.

Note - Although disclosure is essential, you should not openly share confidential information, such as customer-specific information.

B. Encourage feedback
Another important step is to encourage your employees to provide feedback on policies and processes to you and the organisation.

Pay attention to your employees' opinions and use their input to identify and correct deficiencies. By actively working on their feedback, you can easily show them that you care about their views and well-being.

Set clear expectations

Do you know why most employees perform below average?

Because they're not sure what to do.

Think about it.

Job descriptions do not adequately prepare an employee for the workload ahead. If someone is unclear about what they have to do, it will take them longer to complete a task.

In addition, if your company does not encourage open communication, the confused employee may proceed with a task incorrectly!

Before you set goals, make sure you know what you need to do. Then be as clear and specific as possible.

For example, if you want to increase sales by 30%, you need to clarify this:
  • What product sales you are talking about
  • What is the time frame to achieve this goal
  • What are the methods that are expected of the employees
  • On which areas they should concentrate
  • How you will evaluate their performance
  • And some other things

In this way they will be clear about everything and can start immediately. An excellent way to ensure this is to ensure that all your goals are SMART goals:

Specific - Don't be vague about the goals. Tell them exactly what you need.
Measurable - Make sure your goals are measurable so you can quickly analyze progress.
Reliable - Set goals that can be achieved with available resources.
Realistic - Set realistic expectations to avoid possible demoralization.
Timely - Give your employees a specific time frame to achieve their goals.

Help your employees grow

32% of employees who left an organisation cited "lack of career development opportunities" as the main reason for their resignation!

When you give your employees new challenges and roles, you keep them motivated and help them to develop. This will also strengthen their skills and help them to do more for your company.

Here are some ways you can help your employees to develop:
  • Offer internal training and mentoring programs for your employees
  • Maintain a learning culture within the organisation
  • Let your employees represent your organisation at conferences and seminars

Remember that supporting your employees in their development not only helps them - it makes your workforce more talented and able to take on new challenges.

Create a feeling of trust

Trust is an important factor for the productivity and motivation of employees. If your employees feel that you do not trust them enough, they will be demotivated and perform poorly. Research even shows that employees who trust their manager are 12 times more likely to be fully invested in their work!

This is why building an environment of trust is so important. Here you can learn how to do this:

Respect their privacy - Give your employees their own space to do their jobs.
Stop micromanaging - If you go through it all yourself, your employees' self-confidence may decline.
Avoid constant feedback - Only give feedback when it is necessary, e.g. when a big change is needed or when they are going in the wrong direction. Do not give your opinion on every little detail.

Reward good performance

An incentive-based management system is essential to keep your employees motivated. When you reward your employees, it shows them that you value their hard work.

Many companies use a reward system that is directly linked to employee performance. This motivates employees to be more productive and work harder to earn more. For example, the more sales an employee makes, the higher their total commission rate will be.

Rewarding your employees should not just be about money either.

Recognition of employees can also help improve employee satisfaction.
A simple letter of thanks or a company party can do a lot to show that you care about your employees' efforts.

Five tools to help you manage your employees

Here are five types of employee management software that will make managing your employees much easier:

Performance monitoring tools

A core component of employee management is the effective monitoring of your employees.

You need to know that:
  • What tasks they are working on
  • How much time they spend on each task
  • How productive they are

Fortunately, performance monitoring tools like IceHrm have been developed for this purpose.

HR management tools

HR management tools are another must for anyone who wants to implement effective leadership. HR software helps you centralize your employee data to streamline your HR functions and facilitate decision-making.

Apps such as Gusto and Zenefits help you train new employees, manage payroll and benefits and other HR activities in one place. These apps can also give you access to HR professionals and HR file templates.

Communication tools

Your team needs to stay in constant contact to ensure that its work is running smoothly. That's why it's important to invest in an app that helps you and your team members communicate effectively.

Communication apps like Slack and Fleep allow your team to communicate and exchange data. These apps also provide project-specific channels and integrations with various apps to streamline the communication process.

File sharing tools

Keeping all employees on the same page is one of the most essential aspects of employee management. Cloud-based file sharing applications make it easy to keep everyone informed and up-to-date on project developments.

Cloud storage solutions like Google Drive, OneDrive and Dropbox help your team members collaborate on the go. Your team members can use these apps to share any type of file and work together on projects.

Project management tools

Project management tools help you to effectively manage your projects and employees. You can reassign tasks, reassign items, and reschedule activities to ensure that everything goes according to plan.

Project management applications such as ClickUp and Trello allow users to create tasks, schedule projects and set deadlines to get their work done on time. Most of these tools also come with a mobile application to keep you organized on the go.


Employee management is a core process for any company that wants to improve its operating results.

Remember that the most valuable resource in your organization is human capital. It is up to your people management and culture to harness this talent. Follow the tips and processes we have listed here, and you will have no trouble making a good employee your best employee!

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