This post has been updated for 2020.
Employee management encompasses a whole set of employee-centered HR processes throughout the employee lifecycle. Depending on the needs of the small business, HR processes include some combination of
- Hiring: choose the employees who fit your needs, culture, and growth plans and build a candidate pool
- Benefits: administer benefits to hires including health insurance, death benefits, retirement, and leave benefits.
- Performance: track and improve employee performance through goal setting
- Communication: facilitate communication between employees and their managers in the form of messaging. Bonus points for tools that also include goal-based communication
- Training: train employees on job skills, career pathing, leadership, or company-specific knowledge.
- Rewards: recognize and celebrate great behavior and improvements employees with bonuses, games, or let them choose how to spend their rewards.
Not every company will need every type of employee management software, and small businesses often can’t afford to purchase a full HRIS that includes all of these tools. That’s why we’ve gathered the best employee management software for small businesses. Our list includes best of breed and HRIS tools that work for any budget.
Also Read: Best HR Software for Small Business
We can also help you by curating a list of the best HR software for your small business. Click the image below to enter your feature needs, and our unbiased Technology Advisors will set you up with a list of HR software options that meet your requirements.
The Best Employee Management Software for Small Businesses
Best for Hiring: Workable
Workable is an applicant tracking system for small businesses that helps them source, track, communicate, and manage candidates throughout the selection process. The pricing model is per user, meaning you get all of the features for every plan. That’s fantastic for companies who only have 1-2 HR staff members who hire.
Best for Benefits: Zenefits
Zenefits offers a full HR software for hiring and employee data storage, and the benefits program is an add-on at no additional charge other than fees you pay to the health plan. Benefits administration works for health, life, commuter, FSA and HSA accounts. You can extend your Zenefits plan with add-on payroll, performance, and time and attendance tools at a low monthly or annual cost.
Best for Performance: 15Five
- Need to track your employees’ progress toward weekly goals?
- Need to send out pulse surveys?
- How about sending quarterly reviews?
- How will you track and analyze your employees’ responses?
15Five can manage all of these employee performance management tasks inside a great interface. Set up 15Five to notify employees of their ongoing goals and when to fill out their quarterly reviews. Employees will receive email reminders to fill out their reports, and you’ll receive notification of their completion. Check sentiment and progress toward goals in your dashboards. Best of all, watch how employees reinforce great communication with virtual high-fives 🙌.
Best for Communication: connecteam
connecteam is a mobile-first employee management tool that’s designed with communication in mind. Combining time clocks, scheduling, forms, checklists, messaging and training in a single app, connecteam helps mobile-ready teams share information on the go. Chat one-to-one with the messaging feature, or send an update to the entire team. Find a colleague in the directory, and call them from the app. connecteam even includes surveys, which can be used to check employee sentiment pulses, team and company reviews, or to poll teammates for the best meeting time.
Best for Training: Xyleme
Xyleme is an employee training program that makes it easy to upgrade your workforce knowledge. Build a custom library within the tool, or use the easy upload feature from Office products Word and Powerpoint. You can publish to web directly from your training tool, and the responsive design is a must in a mobile-first world. Xyleme allows for easy distribution to many different content types and facilitates translation for multilingual companies.
Best for Rewards: Bonusly
If you haven’t heard about Bonusly, you’re in for a treat. This system incentivizes team members to give one another praise and recognition through a point system, and teams pass out points through the existing messaging app. Once team members gather a store of points, they can trade them in for gift cards to their favorite stores, cash donations to a cause, or custom rewards like lunch with the CEO. Track most-used hashtags and individual points totals in the dashboard.
Find your perfect employee management software
Employee management software comes in all shapes and sizes to fit the needs of your employees and your business. Get expert help choosing the right software for your budget and HR requirements using our Product Selection Tool. It only takes 5 minutes to get a list of employee management tools that fit your company.
Top Human Resources Software Recommendations
Rippling is the #1 Rated All-In-One HR Platform. You can onboard new hires in 90 seconds, and easily manage your company's payroll, benefits, HR, and IT -- all in one, modern system. It brings all of your employee systems and data together, and helps automate your busy work. Take onboarding, for example. With Rippling, you can click a button, and take care of a new hires' I-9, offer letter, payroll, health insurance, and more -- 100% online and paperless.
Designed for mid-market organizations (100+ employees). PeopleGuru develops and supports cloud-based Human Capital Management (HCM) software to help mid-market organizations attract, retain, and recognize their people and streamline back-office HR and Payroll functions. PeopleGuru HCM is a cloud-based, agile solution residing on one database that includes: HR, Payroll, ACA, Benefits Management, Time & Labor, Recruiting, Onboarding, Performance, Learning, Analytics, Salary.
monday.com is a collaborative platform that allows HR managers to manage the entire employee lifecycle in one place. Track the recruitment process of all candidates at a glance, onboard new employees with pre-made templates, plan team-building activities to engage current employees, and leverage data-driven insights with analytics built into your daily workflows. Finally, integrate monday.com with Gmail and 40+ tools you already use so the platform supplements your current workflows seamlessly.
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