4 tips when adopting an employee management solution

All businesses, large and small, are required to capture and report on the time, expenses and absences of their employees. But recording and tracking time and expenses is time-consuming when using paper-based processes and excel spreadsheets and 100% accuracy can be difficult to achieve.

Employee management solutions are designed to solve these challenges by providing an accurate and comprehensive system for tracking time and expenses by user and department. These systems will also simplify audit trails and self-assessment, as well as business reporting on areas such as employee productivity, charge rates, and business project costs.

There are many employee management solutions on the market that can make the process of recording, approving and managing employee time and expenses simpler.

These tips are for SMEs to help when choosing a system and the benefits that SMEs will gain from using an employee management system.

1. Choose a system that improves operational efficiency

A simple, but important, tip that should be covered by all employee management solutions is to make running your business easier. This means streamlining your processes to improve overall time management and business performance measurement.

Manually entering data from across your business into a spreadsheet can easily lead to errors. These mistakes will quickly add up to a significant cost over the year. Employee management software standardises data entry and makes editing an error simple and leaves a clear audit trail for tax purposes.

An employee management system should also be able to highlight instances of persistent incorrect submissions and the employees that are responsible so that this can be resolved quickly.

2. Choose a system with full auditing and reporting capabilities

Any system that allows you to track employee time and expenses needs to have comprehensive reporting and auditing features to ensure a digital paper trail that makes your self-assessment tax returns simple. An employee management system should also be able to integrate with your other systems, to create a full paper trail.

Employee management systems should also have reporting capabilities to deliver real-time views of your company finances, employee time and productivity and customer invoices and billable work.

3. Choose a system that your employees want to use

Nobody wants to spend hours trying to get to grips with a new system that has been implemented to make things easier. Any employee management solution should be as new-user-friendly as possible to encourage your employees to use the system.

Things like simple interfaces, tooltips and easy-to-access guides are all small, but important, additions that will make your new software easier to use and make the most of your investment.

The best solutions offer free support and help centres to get you and your employees up-to-speed as quickly as possible for a smooth implementation.

4. Choose a scalable system that grows as your company does

Every company has a different model for paying for their systems. Some companies offer a per user cost, or a per licence cost which can be reused as employees come and go. Some companies will also include set-up fees as either a one-off cost or as part of a support package. This can increase the cost of the system and should be something to consider when weighing up different solutions.

A subscription model based on cost per licence will be ideal for companies with fluctuating employee levels, such as recruitment companies, because you pay for a number of users that can be changed as necessary.

On the other hand, a fixed fee will appeal to companies that have more fixed employment levels where this flexibility is not necessary, and costs are more predictable.

A few companies offer one-off fees for their employee management software, which may appeal to businesses that want total control over the system. One thing to bear in mind with this method is that support may be limited, or non-existent and so in-house technical expertise will be required.

Final Thoughts

When your focus is to drive company growth or provide cost effective services to your end clients, you need a solution that is reliable, secure and regulatory compliant.

An employee management solution will help improve your business processes and provide a simple, auditable paper trail that will make your self-assessment and business accounting easier.

If you follow these tips, your chosen employee management system should be readily adopted by your employees, integrate seamlessly with your existing business systems and provide a strong return on investment.

For more information on Data Clarity’s employee management solution, contact us at sales@dataclarity.uk.com.

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