How to Make the Most of Your Employee Investment with HR Management Software

Every successful business leader understands that their employees are their company’s largest investment and greatest differentiator, but few leaders understand how to maximize the significant investment they have put into their employees. As a result, many organizations — perhaps yours — are spending far more on employee-related expenses than they should.

Fortunately, good HR management software can help your company make the most of your investment into your employees. More than simply a time-saver for the HR department, good HR software will provide you with employee management tools that deliver clear insight into who your top employees are and how to retain them. This helps you maintain employee engagement.

Why Employee Engagement Is Critical for Business Success

Employee engagement is typically defined as:

Engagement = job satisfaction + organizational commitment + job involvement + feelings of empowerment

Numerous studies have shown that engaged employees take fewer sick days, deliver increased productivity, are more likely to stay in their job, have a greater understanding of customer needs, and are more likely to recommend their company and its products to others. These activities increase customer service which, in turn, increases customer loyalty.

In his paper, “The Economics of Engagement,” analyst Allen Schweyer from the Human Capital Institute states that engaged employees:

• Try harder to meet customer needs, which leads to repeat business
• Work more effectively, instead of just working more
• Share information with colleagues
• Provide suggestions
• Develop creative solutions
• Speak up for the organization
• Find ways to improve

What Are the Costs of Low Engagement?

Studies have also demonstrated that when you have a reduction in employee engagement, your company can experience:

• High turnover rates
• Loss of revenue due to lower customer satisfaction
• Less repeat business
• High employee replacement costs
• Low employee morale
• Absenteeism
• Work accidents

In 2013, Gallup estimated that disengaged employees cost the U.S. economy $450 – $550 billion every year in lost productivity. According to Gallup poll numbers from July 2021, a staggering 64% of U.S. employees are currently disengaged.

How Can HR Management Software Help Increase Engagement?

It can be hard to imagine that an HR management software solution can help you achieve the intangible goals related to effective employee engagement while reducing negative outcomes. However, with the right software solution, you can track, manage, and ultimately improve employee engagement in your company.

By choosing a modern HR management solution that is fully integrated with ERP, such as Sage HRMS which is fully integrated with Sage 100, employers can figure out how to develop the best investment strategy when it comes to increasing employee engagement across the company.

Modern, integrated HR management software solutions provide:

• Detailed information

Data and analytics get you the facts you need at your fingertips about employee performance, so you can quickly and easily identify star performers against average or below-average employees. This helps you make critical workforce planning decisions with more ease and confidence. 

• Clear communication portals

Sharing your employee handbook, policies, company mission and vision, and employee performance metrics is a critical step for empowering employees to improve and stay engaged with their work. Good HR software will provide a portal to make this information readily accessible.

• Employee recognition tools

Crystal clear data regarding employee performance, along with insight into when goals have been met or exceeded, can help your team recognize an employee properly when they have done well. It also helps you take proactive steps when there may be a problem.

• Training resources and tracking

Building employee skillsets, grooming star employees for the leadership track, and improving current management practices can all create impressive employee investment returns at your company. Good HR management solutions help by providing training resources and tracking training milestones and certifications.

• Balanced benefits access

A wide range of benefits can help retain talent, but it can also increase HR paperwork. HR management software helps mitigate the paperwork burden by delivering self-service options and automation tools that streamline and speed the benefits enrollment and management processes while maintaining accuracy.

• Sick leave management

As you know, having clear time off policies and procedures helps reduce unscheduled absences. Additionally, business process automation tools and an employee self-service / visibility portal in your HR management software helps you better manage and understand those costly absences.

As a result, HR management solutions deliver:

• Cost savings, due to reduced turnover or absenteeism
• Revenue growth, due to greater efficiency and customer loyalty
• Increased employee engagement, due to employee empowerment

Get a Free Assessment and Learn How You Can Get More Out of Your Employee Investment

In today’s war for talent, in which the rate of turnover continues to grow each month, small to midsized businesses like yours cannot afford to leave employee engagement management to the big companies with their unmatchable benefits and perks. Instead, winning the talent war will take all the tools in your arsenal to identify your star talent, retain them, and continually engage them with the opportunities and recognition that matter to them.

Integrated HR management software is the #1 tool that helps you accomplish that goal, quickly and easily.

Is it time for your company to consider an HR management solution? Find out when you sign up for SWK Technology’s free HR / Payroll Technology Assessment, which includes an interview with your team followed by written recommendations (example) that will help you develop your customized plan to get on the path to better employee engagement.