30 Best Employee Management Systems of 2025: Reviewed & Compared
10 Best Employee Management Systems Shortlist
Here's my pick of the 10 best software from the 30 tools reviewed.
Get free help from our HR software advisors to find your match.
Choosing the right employee management system can be overwhelming. With so many platforms promising to streamline HR, it's hard to know which one truly meets your needs. If you're dealing with scattered employee data, manual admin tasks, or clunky onboarding, the right system can make all the difference.
I’ve been there. After testing a wide range of tools across various teams, I focused on what matters most: intuitive design, smooth onboarding, strong support, and solid value.
In this guide, you’ll find the best employee management systems to centralize HR data, automate workflows, and enhance the employee experience—so you can build a more efficient and scalable HR operation.
The right employee management system brings clarity, efficiency, and structure to your HR operations. That way, your team can focus on people, not paperwork.
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Best Employee Management Systems: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top employee management software selections to help you find the best software for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 | Best for automated onboarding workflows | Free demo available | Pricing upon request | Website | |
| 2 | Best for onboarding, performance, and payroll | 7-day free trial | From $6.19/user/month (billed annually) | Website | |
| 3 | Best for managing employees and contractors | Free demo available | Pricing upon request | Website | |
| 4 | Best for small brick and mortar businesses | Free plan available | From $20/location/month | Website | |
| 5 | Best for global teams | Free demo available | From $25 - $199/user/month | Website | |
| 6 | Best for employee development | 14-day free trial | From $8/user/month | Website | |
| 7 | Best for tracking goal progress | Free demo available | Pricing upon request | Website | |
| 8 | Best for improving employee engagement | Free demo available | Pricing upon request | Website | |
| 9 | Best for performance management | Free demo available | From $7/user/month, resume screening pricing upon request | Website | |
| 10 | Best for customizable evaluations | Free trial available | From $2.25/employee/month | Website |
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Guru
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6 -
Absorb LMS
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6 -
Mitratech Trakstar
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.3
Best Employee Management System Reviews
Here are my detailed summaries of the best employee management systems that made it into my top 10 list, including notes on why I picked them. Each review offers a detailed look at the key features, pros & cons, integrations, and ideal use cases of each system to help you find the best tool for you.
HiBob is a modern HR platform designed to simplify people management and enhance the work experience for every employee. It caters to organizations operating onsite, remote, or hybrid work models, aiming to drive engagement, culture, and productivity.
Why I picked HiBob: I like its comprehensive performance management system. It offers 360° performance reviews by integrating employees' career timelines, activities, goals, and achievements into the review process, ensuring fair and unbiased evaluations. This holistic approach allows you to gather feedback from various sources, including self-assessments, managers, and direct reports, fostering a culture of continuous development.
Additionally, HiBob's onboarding workflows automate the onboarding process, ensuring no detail is overlooked and providing new hires with a warm welcome. By facilitating opportunities for new employees to get acquainted with the company, their peers, and the company culture, HiBob helps set the stage for a positive employee experience from day one.
HiBob Standout Features and Integrations
Standout features include time and attendance management that simplifies time tracking, allowing employees to clock in and out easily, even via the mobile app. The compensation management feature enables the handling of global compensation processes, including salary reviews, bonuses, and equity allocation, promoting pay transparency and fairness. Additionally, HiBob's culture and engagement tools give your people a sense of belonging, whether they are working onsite, hybrid, or remote.
Integrations include 15five, 360learning, ADP, Aquera, Ashby, Bonusly, Capdesk, Carta, ClickTime, Cloudpay, Deel, Deputy, Evolia, Finch, Greenhouse, HiThrive, Jobvite, Lano, Google Workspace, Microsoft Teams, and Slack.
Pros and cons
Pros:
- Offers a range of integrations
- Includes features for engagement, recognition, and self-service
- An all-in-one platform that covers a wide range of HR functions
Cons:
- Could offer more configuration options
- Limited built-in payroll outside of specific locations
BambooHR is an all-in-one HR software solution for hiring, onboarding, maintaining employee records, managing engagement and performance, and getting employees paid.
Why I picked BambooHR: I decided to add this platform to my list because of how it combines core HR operations in one centralized system. You can manage your hiring and onboarding activities in the same place where you keep up-to-date employee data and process payroll and benefits administration. Plus, performance evaluations can be conducted through the software and employee engagement surveys can be sent out and monitored.
All of this makes for a well-rounded solution, but also well-rounded data tracking and reporting. You’ll be able to spot trends and connections between engagement and performance levels, and hiring and turnover, too. The software also has communication tools to help keep everyone aligned and updated on the most important information.
BambooHR Standout Features and Integrations
Standout features include the software’s community-oriented communications hub. You can use it to facilitate company-wide announcements, project-related discussions, and even personal interest groups to foster social connections among your staff. The confirmation feature gets a digital sign-off from employees once they’ve read mandatory announcements or messages.
Integrations include Slack, Deel, Lattice, Officevibe, TalentLMS, Bonusly, Lever, Payscale, Papaya Globa, Oyster, and dozens more.
Pros and cons
Pros:
- Mobile app available
- Helpful employee self-service portals
- Lots of integrations available
Cons:
- Some features come as paid add-ons
- Pricing is not transparent
Deel is a global employee management platform that enables hiring in over 150 countries. You can hire full-time employees from anywhere in the world and manage their payroll, compliance, and administration from one single platform.
Why I picked Deel: Deel's platform includes management features for both contractors and employees. For employees, Deel works as the employer of record, handling payroll and benefits, so you don’t need to open up a foreign entity. Their full-featured UI also includes features such as contract management, expense reimbursements, and off-cycle payroll adjustments too.
Deel Standout Features and Integrations:
Compared to other employee management systems, Deel stands out with several new offerings over the past year, including free HR software for businesses, global payroll, global mobility support, integrated Slack tools, and advanced integrations. The global mobility service helps companies with visa sponsorship, allowing them to bring in new employees from abroad. The Slack plugins can be used to create an accessible organizational chart, provide self-service PTO management, and even track applicant referrals.
Deel also complies with SOC2 and ISO 27001 security standards, meaning it follows international guidelines for securing your data.
Integrations are available with major HR and accounting platforms, including Ashby, BambooHR, Expensify, Greenhouse, Hibob, NetSuite, Okta, OneLogin, QuickBooks, Xero, Workday, and Workable. The software’s open API can support additional custom software integrations.
Pros and cons
Pros:
- Managed by 200+ local legal and tax compliance experts
- Simplifies payroll using multiple currencies
- Tailored for international organizations
Cons:
- Overlapping plan features require custom pricing
- No free trial available
Homebase is a cloud-based employee management system designed to streamline HR tasks such as time tracking, scheduling, and payroll.
It's one of the best employee management systems that caters to small and medium-sized businesses with hourly employees, like clinics, retail stores, restaurants, and salons. Its user-friendly interface and affordability make it a great choice for small businesses that are looking to streamline their HR tasks without breaking the bank.
Its time-tracking system lets employees clock in and out using their mobile devices, eliminating the need for a traditional punch clock. This feature also allows managers to track their employees' hours in real-time, ensuring that everyone is on schedule and reducing the risk of scheduling conflicts. It has way more than time tracking, though—there's also a set of hiring, onboarding, payroll, and HR compliance features that make this tool a good all-in-one platform.
Integrations include popular payroll providers like ADP, Gusto, and QuickBooks, plus common ecommerce platforms like Shopify and Square. Since a lot of their customer base is in the restaurant industry, there are also a lot of integrations with tools like Restaurant365, tiphaus, and Bevspot.
Remofirst is a comprehensive platform that provides global employment services. It operates as an Employer of Record (EoR) in more than 170 countries, ensuring adherence to local regulations and offering assistance in payroll, benefits management, and equipment provisioning.
Why I picked Remofirst: I selected this platform for its extensive reach and comprehensive services. As an EoR, Remofirst takes on the legal and HR responsibilities for remote employees, allowing companies to focus on their core business. This includes managing payroll, ensuring compliance with local employment laws, and providing benefits.
The tool lets you easily configure new benefits, and access invoices, payroll info, expenses, and time off. Remofirst is designed for remote support and access, providing a range of features to facilitate technical assistance and troubleshooting.
Remofirst Standout Features & Integrations
Features include background checks and local currency management. Background checks allow you to expand your team overseas with confidence, knowing that candidates are being reviewed against local databases. It is a comprehensive coverage that includes criminal, academic, global sanctions, reference, and financial history.
As for currency management, it will let you configure each person's payment in their local currency but allow you to pull reports in your currency of interest only.
Integrations include ADP.
Pros and cons
Pros:
- Compliance issues are handled by local experts around the world
- Fast and responsive customer service
- EOR services available in 150+ countries
Cons:
- No mobile app
- Lacks extensive integrations
Leapsome’s all-in-one platform helps companies strengthen their employee satisfaction through a comprehensive suite of tools focused on employee engagement, performance and learning & development.
Why I picked Leapsome: To help with employee upskilling, their learning and development module can create learning paths using customized curriculum, or curated third-party content from their built-in learning library. Knowledge acquisition can also be measured using short quizzes with a variety of question formats.
Their learning path dashboard also makes it easy to keep track of internal enrollment numbers, progress status, and completion rates for individuals or at the company-wide level.
Leapsome Standout Features and Integrations:
One of Leapsome's standout features is the depth of its integrated performance review system. This module includes modern elements like 360-degree feedback, agile project reviews, and anonymous leadership reviews, to give employees a voice during the feedback process.
Goal setting is also well-integrated into the system so employees always know what’s expected of them, and how their goals are contributing to the bigger picture.
Integrates are available with 15+ common HR software applications including Personio, BambooHR, Bob, Workday, Rippling, PayFit, ADP, Active Directory, SFTP, Okta, OneLogin, GSuite, Slack, Jira Software, Microsoft Teams, and common calendar apps.
Pros and cons
Pros:
- Efficient employee coaching tool
- Good goal tracking features
- Searchable assessment database
Cons:
- Difficult to set “lower than” goals (cost or time reduction, etc.)
- Modular pricing, can become complex
Trinet offers HR software and services to help businesses manage various HR functions, including payroll and employee benefits, employee performance and learning, and workplace analytics. The software's features cover the entire employee lifecycle, from hiring and onboarding through to offboarding.
Why I picked Trinet: Their performance management module has cascading goals, performance evaluation templates, and real-time employee feedback. Managers and their team members can track goal progress and connect employee milestones to their performance reviews. Plus, Trinet also gives you access to over 500 courses to help employees learn on the job and train for their roles.
Employee time tracking and scheduling can also be managed through the software. As you manage employee time, you can also manage employee pay and benefits. Payroll and tax filings can be conducted in several countries, making this a good option for global businesses.
Trinet Standout Features and Integrations:
Standout features for Trinet, in addition to those mentioned above, include their workforce analytics capabilities. You can customize their dashboard to track key metrics like your headcount, turnover rates, employee tenure, new hires, and terminations.
Integrations are available with BambooHR, Bob, Carta, ChartHop, Compt, Greenhouse, Lattice, Oracle NetSuite, Sage Intacct, QuickBooks, Xero, and many others.
Pros and cons
Pros:
- Global payroll management for multi-national businesses
- Centralizes all of your HR processes in one platform
- Company provides HR services as well as software
Cons:
- Full functionality may not be needed
- Robust system, comes with a learning curve
Paylocity is an employee management system that integrates HR and payroll functions into one platform. It’s designed to make managing your team easier by automating everyday HR tasks.
Why I picked Paylocity: Paylocity helps you manage your workforce by offering an easy way to handle employee data and documentation. You can store important employee records in a digital, centralized system, ensuring quick access and reducing the need for paper files. Its talent management tools help track employee performance, letting you set goals and monitor progress, while also allowing employees to give and receive feedback.
Another reason Paylocity stands out as an employee management system is its focus on fostering employee engagement. Through its community and peer recognition tools, your team can give shoutouts to each other, which helps build a positive workplace culture.
Paylocity Standout Features and Integrations
Standout features include the scheduling feature that helps managers organize shifts and monitor attendance, ensuring that labor needs are met without overstaffing. The payroll feature automates tax filing and integrates with benefits management, so you don’t need separate systems to handle employee compensation.
Paylocity also has an employee self-service portal for updating information and submitting time-off requests.
Integrations include ClearStar, Microsoft Dynamics 365, 7shifts, AirMason, APA Benefits, Azure, Atlassian, Asana, Box, ClearCompany, Dropbox, Freshdesk, Google Workspace, Greenhouse, HubSpot, Slack, Salesforce, Trakstar, and Zoho People.
Pros and cons
Pros:
- Includes performance management features
- On demand payment options
- Includes tax compliance services
Cons:
- Lacks support for independent contractor payments
- Setup can be time consuming
Peoplebox is an AI-driven platform that helps you manage performance, recruitment, and goal alignment within your team. It offers tools for performance reviews, 360-degree feedback, and employee engagement, all in one place.
Why I picked Peoplebox: I like Peoplebox for its comprehensive performance review system. It allows you to conduct 360-degree reviews, gathering feedback from peers, managers, and direct reports. This holistic approach ensures that evaluations are fair and thorough, helping your team members understand their strengths and areas for improvement. Additionally, the platform supports goal-based reviews, enabling you to assess performance in the context of your company's objectives.
Another valuable feature is the automated engagement surveys. These surveys provide real-time insights into employee satisfaction and engagement levels. By regularly collecting and analyzing this data, you can identify trends and address concerns promptly, fostering a more positive work environment. The anonymity of these surveys encourages honest feedback, giving you a clearer picture of your team's morale.
Peoplebox Standout Features and Integrations
Standout features include business reviews that help you track and discuss key performance indicators during strategic meetings, ensuring alignment across departments. The KPI board offers a centralized place to monitor essential metrics, making it easier to assess progress toward your goals. Additionally, the platform provides tools for 1:1 meetings, facilitating regular check-ins between managers and team members.
Integrations include Slack, Microsoft Teams, Google Sheets, Jira, HubSpot, Salesforce, BambooHR, and SAP SuccessFactors.
Pros and cons
Pros:
- Promotes employee engagement
- Good performance management system
- Robust tools for managing OKRs
Cons:
- Good offer more flexibility for specific functions
- Lacks broader employee management functions
Express Evaluations is a performance management software designed to facilitate employee evaluations and foster professional growth. It offers tools for creating custom evaluation templates, setting automated review schedules, and generating insightful reports.
Why I picked Express Evaluations: One standout feature is its customizable evaluation templates. You can tailor these templates to fit your organization's specific needs, ensuring that performance reviews are relevant and aligned with your goals. This customization leads to more meaningful evaluations and targeted employee development.
Another valuable aspect is the automated scheduling and reminders. Once you've set up your evaluation timelines, the software automatically notifies employees and managers of upcoming reviews and deadlines.
Express Evaluations Standout Features and Integrations
Standout features include performance improvement plans that help you address and monitor employee development areas effectively. The employee notes function allows managers to document important information throughout the year, providing a comprehensive view during evaluations. Additionally, the software offers manager/employee check-ins.
Integrations include HR-related software like Employee Navigator.
Pros and cons
Pros:
- Customizable evaluation templates
- Supports performance improvement plans
- Comprehensive reporting features
Cons:
- No mobile application for on-the-go access
- Limited integration options with other HR systems
Other Employee Management Systems
Here are a few more options that didn’t make the best employee management software list. If you need additional suggestions for helpful HR systems, check these out:
- Veriato
For tracking employee productivity
- GoCo
For employee self-service
- Buddy Punch
For field-based teams
- eloomi
For training management
- Eddy
For small businesses
- Inspire
For performance, recognition, and feedback
- Factorial
For payroll processing
- Kissflow Workflow
For tracking HR projects
- Bullhorn
For staffing
- TalentReef
For recruiting hourly workers
- SAP SuccessFactors
For enterprise organizations
- Insperity
For growing businesses
- SyncHR
For organizing employee data
- Rippling
For HR, payroll, and IT
- Lattice
For performance-related feedback
- Remote
For remote teams
- monday.com
Employee productivity tool
- Justworks
For benefits administration
- Mitratech Trakstar
For continuous feedback
- Connecteam
All-in-one app for mobile teams
Related HR Software Reviews
If you still haven't found what you're looking for here, check out these other related tools that we've tested and evaluated:
- HR Software
- Payroll Software
- Recruiting Software
- Employer of Record Services
- Applicant Tracking Systems
- Workforce Management Software
Selection Criteria for Employee Management Systems
Selecting the right employee management systems hinges on understanding how each functionality aligns with common use cases and organizational needs. Having personally navigated the landscape of these tools, my approach to choosing the best employee management systems is grounded in thorough research into recent market data on employee management software and how these tools optimize key HR processes while addressing common buyer needs and pain points.
When evaluating employee management systems, start by identifying your core HR pain points. Look for tools that address essentials like payroll, compliance, and employee records. If those foundations aren’t solid, everything else becomes harder to manage as you scale.
Here are the details I evaluated to decide on my final picks:
Core Employee Management System Functionalities (25% of total score): To be considered for inclusion in my list of the best employee management systems, the solution had to offer the following basic functionalities first:
- A centralized repository for all your core employee data
- Integrated modules for easy digital data management (i.e., no need to enter the same information twice)
- Employee self-service capabilities to cut down on administrative requests
- Customizable user roles and permissions to limit who has access to your data
- Strategic HR insights through integrated analytics & reporting
- Integration capabilities with other key HR software solutions (including applicant tracking systems, project management software, and other tools your HR team relies on) for seamless data flow and increased operational efficiency
In addition to these core features, it's also important to note that there are different styles of employee management platforms out there. Some are focused more on day-to-day activities such as scheduling and task management, while others have a heavier focus on employee development and performance.
Additional Standout Features (25% of total score): To help me uncover the best employee management systems on the market, I also kept a keen eye out for any unique features, including:
- Advanced AI-driven analytics including predictive insights
- Customizable workflow automation tools to reduce manual HR tasks
- Unique employee engagement tools, such as gamification, pulse check-ins, or wellness tracking
- Platforms offering exceptional mobile experiences for on-the-go HR management
Usability (10% of total score): To evaluate the usability of each employee management system, I considered the following:
- An intuitive user interface design that simplifies complex processes
- A good balance between powerful features and ease of use to accommodate all skill levels and create a positive user experience
- User-friendly design elements like drag-and-drop calendars for scheduling and in-app communication tools
- Role-based access controls that are straightforward to configure
Onboarding (10% of total score): To get a sense of each software provider's customer onboarding process, I considered the following factors:
- Quick setup processes and clear guidance for first-time users
- Customizable templates and reports to speed up the onboarding process
- Comprehensive training materials such as videos or interactive tutorials
- Support for migrating data from previous systems into the new platform
Customer Support (10% of total score): To evaluate the level of customer support each vendor offered, I considered the following:
- The availability of multiple support channels, including email, phone, and chat
- The existence of a self-service knowledge base, FAQ repository, or other self-help resources to speed up troubleshooting
- The overall quality, responsiveness, and helpfulness of the support team during customer onboarding and post-purchase, as inferred from customer reviews
Value for Price (10% of total score): To gauge the value of each software, I considered the following factors:
- The availability of free trials or demos to test the software before purchasing
- Transparent pricing models that clearly explain which features are included at each level, with no hidden fees
- Tiered pricing plans that cater to different business sizes, from small to medium-sized businesses (SMBs) up to enterprise-level organizations
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how well a product performs in the hands of real users. Here are the factors I considered:
- Whether a product has consistently high ratings across multiple review platforms, indicating a broad level of user satisfaction
- Specific praises, criticisms, or trends in customer feedback that indicate the software's strengths or areas for improvement
- Whether customer feedback specifically mentions issues with ease of use, customer support responsiveness, or lacking features
- Testimonials that highlight beneficial use cases, including mobile app functionality and customization options
Using this assessment framework helped me uncover the employee management systems that go beyond basic requirements to offer additional value through unique features, intuitive usability, smooth onboarding, effective support, and overall value for price.
How to Choose an Employee Management System
Employee management systems can solve many different challenges and improve numerous workflows. To help you figure out which employee management system best fits your needs, you need to pinpoint your key users and document their specific challenges first.
As you work through your own unique employee management software selection process, keep the following points in mind:
- What employee management problems are you trying to solve? Start by identifying the challenges you're trying to overcome. This will help you clarify the features and functionality the employee management software needs to provide. Common employee management challenges include:
- Difficulty staying on top of employee data management and record keeping,
- Inefficient employee scheduling and time-tracking processes,
- Payroll and benefits administration processes that are siloed in other systems without integration,
- Cumbersome employee performance processes that are inconsistent, or
- Poor employee onboarding experiences, especially for remote new hires.
- What outcomes are important and how will you measure success? Being clear on your desired outcomes upfront is crucial to avoid wasting valuable time. Key outcomes you may want to focus on include:
- Integrated modules for HR functions that reduce or eliminate manual data entry,
- Automated employee scheduling capabilities resulting in less scheduling conflicts or absenteeism,
- Enabling a better employee experience for your staff by allowing them to trade shifts, or access self-service features, or
- Improved productivity for your HR team as a result of new workflow automation features and AI-backed HR processes.
- Who are your main users? Consider who will use the software and how many licenses you'll need. You'll need to evaluate if it'll just be your HR professionals and managers, or your whole organization that will require access. Once that's clear, it's also useful to rank the needs of your different users to identify the key priorities for your power users, managers, and employees, to ensure they're all met.
- What is your budget? To evaluate cost, do a headcount of your existing workforce, plus your projections for the next 5 to 10 years. Since most staff management tools charge a monthly fee per employee, this will help you estimate your monthly costs proactively.
- Do you require specific software integrations? Clarify whether your new employee management system will replace existing tools, or need to integrate with them. Depending on the type of employee software you're looking for, some key integrations to watch for include payroll software, or attendance and time-tracking tools.
- Does the new software satisfy your technical requirements? Consider the software selection alongside your existing workflows and systems. Does the new employee management system offer the security features you want (e.g., two-factor authentication (2FA), etc.)? Does the software offer a complimentary employee management app for connecting via mobile devices?
Remember, every business is different — don’t assume that an employee management system will work for your organization just because it's popular.
Trends in Employee Management Systems for 2025
Employee management systems have continued to evolve to incorporate advances in technology as well as changing workplace dynamics. Here are the most recent trends that are shaping the future of employee management systems today:
- AI-Powered Predictive Analytics: Many systems now offer AI-driven insights to help HR teams forecast staffing needs, flag potential employee churn, and identify areas for improvement. This proactive approach transforms HR from reactive task management to strategic workforce planning.
- Personalized Employee Experiences: Systems are shifting toward hyper-personalization—custom learning paths, benefits recommendations, and wellness resources tailored to each employee’s role, goals, and preferences. This trend supports higher engagement and retention.
- Mobile Accessibility: The importance of mobile access to employee management systems continues to grow. Updates are increasingly focused on enhancing the mobile user experience, ensuring that employees and managers can access the system and perform tasks from anywhere, at any time.
- Automation: Automation is a current trend in employee management software because it streamlines repetitive tasks, boosts efficiency, and reduces human error. Improving HRIS toolset capabilities allows companies to automate tedious tasks like employee scheduling and attendance monitoring.
- Integrated Communication Tools: Newer systems are embedding chat and feedback tools directly into platforms—making it easier for managers and employees to communicate, complete performance check-ins, or request support without leaving the app.
- Data Privacy & Compliance Features: As data protection regulations tighten globally, employee management platforms are doubling down on compliance tools. Features like automated policy updates, role-based permissions, and audit trails are becoming standard to help businesses stay secure and compliant.
These developments in employee management software signal a clear trend toward more integrated, intelligent, and user-friendly solutions designed to optimize daily HR operations, uncover actionable insights, and provide a better employee experience.
What is an Employee Management System?
An employee management system is a tool that companies use to organize their employee data and key functions within their HR department, including:
- recruitment & onboarding
- time and attendance tracking
- performance management
- training & development
- payroll administration, and
- benefits administration.
They are a type of workforce management tool that acts as a single source of truth for your HR professionals and employees alike.
Employee management systems increase the efficiency and accuracy of your HR data and give you tools to manage your workforce more effectively, including an employee database, time tracking, task management, and employee scheduling abilities.
They're purpose-built to scale with your company as your workforce grows, with no limit to the number of employees you can manage. They'll get you out of your Excel spreadsheets and filing cabinets and into the area of digital HR, allowing you to segment your workforce data into all your key sub-groups easily.
Common Employee Management Challenges
Traditional methods of managing employees often lack the efficiency, accuracy, and engagement necessary for today’s dynamic workplaces. Having navigated the complexities of employee management, I’ve encountered many of these recurring issues firsthand.
Below are some of the most common limitations of traditional employee management methods, each of which can be resolved by implementing a new employee management system:
- Time-Consuming Administrative Tasks: Traditional approaches often rely on manual processes for tracking attendance, performance, and scheduling, consuming significant time for HR teams and managers. Employee management software automates these tasks, allowing HR to focus on strategic priorities rather than manual tracking.
- Inconsistent Performance Tracking: Without a standardized system, performance evaluations can vary widely, leading to inconsistent and subjective feedback. Employee management systems centralize performance data, enabling fair and consistent evaluations that help employees understand and meet expectations.
- Limited Engagement Opportunities: Relying on in-person meetings and sporadic check-ins can make it difficult to maintain engagement, especially with distributed teams. Employee management systems offer tools like pulse surveys and real-time feedback, helping managers gauge engagement and address issues proactively.
- Poor Visibility and Accountability: Traditional methods often lack transparency, making it difficult to track task completion, monitor progress, or hold employees accountable. With centralized dashboards and real-time tracking, employee management software gives managers a clear view of team progress, enabling better accountability and oversight.
- Challenges in Managing Remote Teams: Traditional approaches typically don’t provide remote employees with the tools they need to feel included and connected. Modern systems facilitate virtual communication, file sharing, and task management, allowing remote employees to collaborate and contribute effectively.
- Prone to Errors and Compliance Risks: Manual data entry and paperwork increase the risk of errors, which can lead to compliance issues with labor regulations. Employee management systems help mitigate these risks by securely storing data, automating compliance tracking, and providing updates on regulatory changes.
- Limited Flexibility for Personalized Development: Traditional methods often lack the tools needed to tailor development plans based on individual skills, roles, and career goals. Employee management systems allow managers to create customized development plans, aligning individual growth with company goals.
- Difficulty in Analyzing Workforce Data: Compiling and analyzing data from multiple sources is time-consuming and limits data-driven decision-making.
Employee management systems consolidate data into dashboards, enabling HR and leadership to identify trends, make informed decisions, and optimize resources. - Slow Response to Employee Feedback: Traditional feedback methods are often infrequent and delayed, making it hard to address employee concerns in real-time. Modern systems provide tools for continuous feedback, allowing HR and managers to respond to employee needs and improve the workplace experience promptly.
- Inefficient Resource Allocation: Without a streamlined system, HR and management resources are often spread thin, handling routine administrative tasks that detract from strategic work. Employee management software reduces administrative burdens, freeing up resources that can be allocated to high-impact initiatives.
As you can see, these common frustrations illustrate how an advanced employee management system can improve efficiency, engagement, and consistency, supporting a more productive and empowered workforce.
Features of Employee Management Systems
In addition to the core functionalities above, here are some additional features I also paid close attention to when evaluating the best employee management systems for this list:
- Payroll Processing: From the employee perspective, ensuring your payroll is properly processed is always a top concern. Most employee management platforms do offer payroll abilities, or at the very least, integrations or add-ons to cut down on manual payroll-related processes.
- Time & Attendance Tracking: Tracking your employees' whereabouts is a key pillar of employee management, which is why integrated time tracking and leave management features are important. You want to be able to manage vacation and other time off requests within the same tool you're creating your work schedules in, to avoid scheduling conflicts or duplicating work.
- Benefits Administration: Many employee and HR management systems offer benefit management tools that simplify the enrollment process for employees, improving satisfaction and retention.
- Performance Management: Ensuring employees reach their full potential is also a crucial aspect of employee management. You'll want the ability to conduct employee performance reviews, set goals (some have structured goal setting with OKRs), track goal progress, and collect continuous feedback. Other common features are employee self-assessments and 360-degree feedback.
- Learning & Development: This feature covers any tools that help internal talent development teams deliver targeted training programs, fostering a culture of continuous improvement and supporting skill-building and employee growth.
- Employee Engagement Features: This covers features designed to encourage employees to interact more with each other. It might also come in the form of tools to monitor employee satisfaction, sentiments, and well-being.
- Automation Capabilities: Some systems provide smart workflows to automate various repetitive or tedious manual HR processes. This could cover things like running payroll and employee benefits administration, processing time off approvals, or ensuring employee onboarding checklists are completed.
- Reporting & Analytics: Systems that gather and report on HR metrics in real-time allow you to make better data-driven decisions across all areas of your organization. Other helpful features include different ways to visualize your data, as well as the ability to export your employee data in various formats.
- Compliance Management: This feature ensures that all HR practices adhere to current labor laws and regulations, protecting the company from potential fines and legal challenges, and minimizing risks.
- Mobile Accessibility: Providing the option for your employees to access their information via a mobile-friendly self-service portal enhances the flexibility and accessibility of managing a dynamic and mobile workforce.
Selecting employee management software with these features is essential for modern businesses aiming to optimize their HR operations. By focusing on these features, companies can effectively manage their most valuable asset—their people—and pave the way for continued success and growth.
Benefits of Employee Management Systems
Employee management systems are powerful workforce management tools that act as a single source of truth for organizing key HR functions, including recruitment & onboarding, time and attendance tracking, performance management, training & development, payroll, and benefits administration.
By selecting the best employee management software for your needs, you can expect to gain the following benefits:
- Increased Efficiency: By automating routine tasks such as time tracking, payroll, and employee data management, employee management systems significantly reduce the time and effort required to manage these processes. This frees up HR professionals to focus on more strategic tasks, thereby increasing the overall efficiency of the HR department.
- Improved Employee Experience: By empowering employees through self-service portals and enhancing their user experience through personalization and mobile-friendly features, employee management systems improve the overall employee experience, leading to greater job satisfaction.
- Enhanced Data Accuracy and Security: Employee management platforms improve data accuracy by minimizing the errors associated with manual data entry. Additionally, they offer advanced security features to as encryption and two-factor authentication to protect sensitive employee information, ensure compliance with data protection regulations, and prevent data breaches.
- Streamlined Communication and Collaboration: By centralizing employee information and providing tools for feedback collection and two-way communication, employee management systems facilitate better communication between managers and employees and foster a more collaborative work environment.
- Data-Driven Decision Making: With comprehensive analytics and reporting tools, employee management systems offer insights into important HR metrics like turnover rates, employee engagement, and productivity levels. These insights enable HR professionals and business leaders to make informed decisions that can positively impact the organization's growth and performance.
As you can see, employee management systems offer operational benefits to organizations of all sizes, including improved efficiency, a better employee experience, and data-backed insights to drive operational success.
Costs & Pricing for Employee Management Systems
Often, the decision to invest in a new software system comes down to the final price, and there's no shame in that. It's important to find an employee management system that works within your budget, but also meets your business needs.
Employee management systems offer different plans and pricing options that cater to different organizational needs and sizes. Many also offer free trials or free plans with limited features (i.e., freemium plans), allowing you to get your hands on the software before you commit to a contract.
Plan Comparison Table for Employee Management Systems
| Plan Type | Average Price | Common Features Included |
|---|---|---|
| Free | $0 | Basic employee tracking, limited reporting, and access for a small number of users |
| Basic | $2 - $8 per user/month | Employee self-service, time and attendance, basic HR reporting, and email support |
| Professional | $8 - $15 per user/month | Full HR suite (including recruitment and onboarding), advanced analytics, integrations with other software, and phone support |
| Enterprise | Custom Pricing | Customizable features, dedicated support, advanced security options, API access, and scalability options |
Choosing the right plan involves balancing your organization's specific needs with your budget considerations. Always consider the scalability of the system and the quality of customer support when making your decision.
While it's understandable that you may want to start with a free or basic plan initially, there are several reasons why you may want to opt for a more advanced plan, including:
- Growth in Employee Numbers: Many basic plans limit the number of admin users and employee accounts you can have. However, more advanced plans can accommodate larger volumes of users and offer better tools for managing an increased amount of employee data and administrative tasks.
- Advanced Reporting Needs: If you need more detailed insights and analytics to make informed decisions, you'll need to scale up your plan to unlock these advanced HR reporting software features. However, it's worth paying a little extra to gain tools to help you track performance, identify trends, and improve the overall efficiency of your workforce.
- Integration with Other Systems: Integration abilities are usually quite limited or nonexistent in free or basic plans. However, integrating your employee management data with other business systems, including your payroll, CRM, or ERP, is worth investing in, since doing so will improve your data synchronization across systems, reducing manual data entry and the possibility of errors.
- Customization and Flexibility: If your unique business needs require more customization options, you'll likely need to increase your plan to access those features. By upgrading to a higher-priced plan, you'll gain the ability to tailor your workflows to align with your company's processes.
- Advanced Support and Training: If you find you need more than just basic troubleshooting, an advanced plan may be a better fit. Advanced plans typically offer superior customer support and training resources, helping you maximize the software's potential and get up-to-speed in the system quickly.
Ultimately, it's important to secure a plan that offers the features you require to satisfy your current needs and solve your challenges without exceeding your budget.
Employee Management Systems: FAQs
Have some questions about employee management systems and what they have to offer? These frequently asked questions are a great place to start:
What is employee management?
Employee management is the systematic and strategic approach organizations use to oversee its workforce effectively. It involves a range of activities that cover the full employee lifecycle, including recruiting, developing, motivating, and retaining employees to achieve their full potential while also achieving the organization’s goals.
At its core, employee management is about nurturing your employees to drive productivity, innovation, and success. By implementing proper employee management practices, teams can capitalize on employee strengths to create a functional and efficient workplace.
Looking for some more concrete details? This article explaining why human capital management is important has lots of interesting examples.
What do employee management systems do?
Employee management systems are useful for running a smooth organization, especially organizations of scale. They assist HR personnel in keeping track of employee information such as salary details, medical information, attendance/leave records, overall performance and more.
They are an essential backbone of every organization’s HR tech stack. In fact, employee management software (including payroll software) occupies the biggest share of the HR tech market, totaling 57.8% in 2019!
How can software support HR teams with typical employee management challenges?
HR teams often face a heavy load of tasks, from handling employee records to managing payroll, scheduling, and compliance. This can lead to inefficiencies and mistakes, like missed deadlines or data errors. When HR is stretched too thin, it affects both productivity and the employee experience, with slow responses or inconsistent processes causing frustration or disengagement.
Employee management systems help by streamlining and automating these tasks. A centralized platform lets HR teams work more efficiently, reducing errors and freeing up time for more strategic work. With the right tools, HR can handle everything from onboarding to performance tracking, ensuring employees get the support they need.
What are the most common challenges of managing remote, hybrid, or other diverse team structures?
Managing diverse, hybrid or remote teams brings specific challenges. Remote work can make communication harder, tracking performance more difficult, and leave employees feeling disconnected. Without the right tools, remote workers may feel isolated, affecting their productivity and morale. Managing different time zones and ensuring fair workload distribution can also add complexity.
Diverse teams offer benefits but require careful management. Different cultures, communication styles, and work habits can lead to miscommunication if not handled well. Employee management tools that improve communication and collaboration help ensure diverse teams can work together effectively, no matter where they are based. These tools also promote fairness and inclusivity, giving everyone the support they need.
How do these systems handle data privacy and security?
Employee management systems prioritize data privacy and security by employing various strategies, including:
- Data encryption
- Secure access controls
- Regular security audits
- Compliance with global data protection regulations (e.g., GDPR).
It’s important to select a system that transparently outlines its security measures and has a proven track record of safeguarding user data, giving you peace of mind when it comes to compliance.
If you’d like to learn more, have a read through this article on best practices for data management.
Are there any hidden costs associated with these systems?
While employee management systems advertise their core features, potential hidden costs can include fees for additional users, advanced features, customizations, integrations, and sometimes even for data export or technical support. Always inquire about the total cost of ownership before committing to a system.
If cost is your biggest concern, this article delves deeper into different HR software pricing models you may encounter.
What resources can help me be a better manager?
If you’re struggling with employee retention, you may want to take a closer look at the skills of your management team. Thankfully, we have numerous resources that can help you, or your team members, improve their people management skills. Here are a few of our top-rated resources to point you in the right direction:
- How to Grow Exceptional People Managers Within Your Business
- People Management Tips for New and Experienced Managers
- Result vs People-Oriented Managers: Who They Are & Which is Better
- Why and How to Create a Proper Talent Management Strategy
- How to Manage Through a Crisis (a podcast with Mike Gibbons from Culture Assassins)
Also, if you want to get access to this type of content on a regular basis, consider signing up for our People Managing People newsletter too.
What is an HRIS?
A human resource information system (HRIS) is a type of human resources software solution that allows businesses to organize and streamline all employee data within one system. This saves time, resources, and budget to simplify work and efficiency within organizations. Information such as departments, pay rates, benefits selection, and employee job details can be utilized in an HRIS system.
If you’d like to learn more about HRIS systems we have several resources to help, including summaries of their core HRIS functions, key HRIS benefits, and my list of the best HRIS systems on the market today, plus HRIS options for small businesses too.
How have employee management systems adapted to accommodate hybrid working environments?
Employee management systems have to support hybrid working arrangements in several ways. Since this software is cloud-based, it can be accessed easily from anywhere, whether employees are working in the office, or working remotely. Many staff management software tools are also accessible from mobile devices now too.
Modern employee management systems also include built-in communication tools for messaging, video calls, and real-time collaboration, which helps maintain team cohesion and keeps everyone in the loop, regardless of their physical location. Task management features have also been enhanced to allow managers to track employee process effectively without the need for in-person supervision.
Many employee software options also include scheduling and time-tracking tools or mobile apps where employees can clock in to record their work hours. And even still, others include advanced features like employee directories that show who is online, working from home, or working in the office each day.
If managing a hybrid team has you spinning your wheels a bit, take a look at these hybrid workforce best practices to give your management skills a boost.
What mobile capabilities do employee management systems offer for on-the-go access?
Most employee management systems offer mobile capabilities through an employee self-service app or portal. These apps typically allow employees and managers to complete the following tasks:
- Access work schedules
- Request time off
- Update tasks
- Clock in or out from work shifts and log breaks
This flexibility is crucial for supporting remote work and ensuring operations run smoothly, regardless of location.
What are some tips and best practices to improve employee management?
Effective employee management is key to fostering a productive, engaged, and loyal workforce. Here are some best practices to help you refine your approach:
- Communicate Clearly: Keep communication open and straightforward. Regular check-ins help ensure alignment and engagement.
- Set Expectations and Goals: Define clear expectations and set measurable goals that align with team and company objectives.
- Give Regular Feedback: Don’t wait for annual reviews. Provide real-time feedback to help employees improve and stay motivated.
- Support Development: Offer training and growth opportunities to keep employees engaged and committed to their roles.
- Empower Decision-Making: Encourage employees to take ownership of their work by giving them the flexibility to make decisions within set boundaries.
- Create a Positive Environment: Promote collaboration, celebrate wins, and respect work-life balance to keep morale high.
- Use Technology for Efficiency: Use employee management tools to handle admin tasks, track performance, and manage schedules efficiently.
- Focus on Well-being: Support employees’ physical and mental well-being to build a resilient and engaged team.
These practices help build a focused, motivated, and productive team. Clear goals, real-time feedback, and a supportive environment are keys to better employee management.
What is a leave management system?
A leave management system is a type of employee management app that allows automated leave requests to be processed. This activity tends to be a time-consuming task for the HR department to ensure a sufficient amount of staff within the organization at all times. This system makes the process painless for both managers and employees.
If you're primarily looking for a tool to help you track and manage your paid time-off (PTO) requests, take a look at my list of the best leave management software too.
Other Employee Management Tools
While I've got your attention, here are some links to other types of employee management tools you may also want to consider:
- Benefits Administration Software
- ERP Software (+ Free ERP Options)
- Employee Experience Software for Engagement & Performance
- Employee Training Software for Online Learning & Development
- Employee Scheduling Software For Small Businesses
- Employee Shift Scheduling Software
- Free Employee Scheduling Software
- Attendance Tracking Software
- HRMS for Human Resource Management
- Talent Management Systems for HR
- Learning Management Systems
Stay Connected
Any of the tools above can help you with your workforce management. It’s just a matter of determining which one is best for you.
I also recommend signing up for our weekly People Managing People newsletter. You'll gain access to a steady stream of articles covering employee management best practices from industry experts, as well as our latest podcast episodes. We'll help you stay up-to-date on the latest trends in every aspect of creating a better employee experience.