What is Employee Management Software (EMS)?

Employee Management Software (EMS) is the tool that makes it easy to manage your workforce, without sifting through endless paperwork or spreadsheets. It offers a centralized platform to simplify employee management and transform the way you organize your most valuable asset—your workforce.

More and more companies are using Employee Management Software: By 2028, the market for HR software is expected to be worth $33.57 billion. We will find out why in this guide.

Defining Employee Management Software (EMS)

Let’s get straight to the point. Employee Management Software is an employee management system designed to simplify and automate core HR functions. In short, it acts as a central hub for managing employee data and performance tracking, simplifying task management and HR processes, and enabling better communication at all levels of an organization.

Here's a first glimpse of EMS’s key functionalities:

• Employee onboarding and self-service
• Time and attendance tracking
• Employee performance management
• Payroll data collection
• Benefits management
• Employee analytics

What’s the Difference between EMS, HCM, HRMS HRIS?

Feeling overwhelmed by all these HR software terms? Regarding employee management tools, we have you covered. EMS is a broader term that encompasses different employee management systems. HCM, HRMS, and HRIS are types of HR employee management software that address different company needs and sizes.

Key Features of Employee Management Systems

We’ve already introduced EMS core features. However, we still owe you a closer look at them and how software for employee management can help your business make a significant difference in daily task management:

Employee Onboarding and Self-Service

Onboarding can be seriously overwhelming, like many beginnings. Sending welcome emails, assigning and explaining tasks that can be completely unfamiliar for new hires, and granting access to company resources are definitely not a joke. Believe it or not, EMS can automate all these things we’ve just mentioned. Even more, this software for managing employees can provide new hires portals to update personal details and access company information on their own.

Time-off Management and Attendance Tracking

Forget about the manual timesheets and embrace time off tracking—you will not regret it. EMS is also an employee time management software. EMS offers clock-in/out features and may even integrate with mobile apps. It also provides employees a simple mechanism to request time-off for specific purposes such as vacations, parental leave, or emergencies. And it can show how employees have spent their work-from-home days.

Performance Management

EMS provides built-in tools to conduct electronic reviews for performance tracking. Set clear goals, provide constructive feedback, and track employee progress—again, all within a centralized platform. This feature not only can significantly help to improve employees’ efficiency, but also can provide you with very useful information through employee feedback that can help you make smarter strategic decisions. As the cliché says, “knowledge is power”.

Payroll Data Collection

Payroll is always a headache. An EMS stores payroll data for each worker safely and compliantly.

Benefits Administration

Employee benefits are tried-and-tested employee engagement tools. Now, a company that offers benefits should be clear about them. In this sense, an EMS is a shortcut for both HR teams and employees to have clear information and make best use of their benefits' management. EMS offers functionalities to manage enrollment electronically, assign benefits by team or department, and track costs associated with each benefit program.

Employee Analytics

With an employee management system, you can gain useful data on your workforce with built-in analytics tools. Analyze data on trends like headcount, employee demographics, and performance metrics. This data-driven approach enables you to make better decisions regarding workforce planning, talent development, and overall HR strategy.

Types of EMS Software

There are many different employee management tools out there. They can be broadly categorized into three main types, each employee management system designed to respond to specific needs and organizational sizes.

These are the most common types of employees management software:

HRIS (Human Resource Information System)

• Focus: Core HR data management and simplifying administrative tasks.
• Key features: Centralized storage for employees (demographics, contact details), payroll processing, benefits management, and basic reporting.
• Scalability: Ideal for small to medium-sized businesses with a need to consolidate employee data and automate essential HR processes.

Think of HRIS as the foundation for employee management. It keeps everything organized and readily accessible. This employee management system can be useful for startups without a consolidated HR team, whose CEOs need to free themselves from these administrative and tedious tasks.

HCM (Human Capital Management)

• Focus: Comprehensive HR management with a focus on process automation and employee self-service.
• Key features: All functionalities of HRIS, PLUS recruitment management, performance reviews, time and attendance tracking, and employee self-service portals for tasks and updates.
• Scalability: Ideal for organizations of all sizes seeking to automate workflows across the entire employee lifecycle, from recruitment to performance management.

HCM goes beyond data storage. It automates tasks, offers employees user-friendly self-service options, and provides managers with helpful data on workforce trends.

HRMS (Human Resource Management System)

• Focus: Strategic employee management and workforce optimization—employee development and performance.
• Key features: All functionalities of HRMS, PLUS talent acquisition tools (ATS), advanced analytics for workforce planning, functionalities for managing complex global workforces, and robust talent development features.
• Scalability: Ideal for large enterprises with a global workforce.

HRMS is the powerhouse solution. It provides all the benefits of HRIS and HCR, with additional functionalities designed to help organizations attract, develop, and retain top talent.

Benefits of Using EMS

Implementing an Employee Management Software solution offers plenty of benefits for businesses of all sizes.

Here's a closer look at the tangible advantages of employee management systems:

Improvements in Efficiency and Automated Workflows

• Reduced administrative burden: An employee management system automates repetitive tasks like time tracking, leave requests, and onboarding processes, especially because it lets employees complete their own profiles.
• Minimized data entry errors: Automated data entry reduces the risk of errors and keeps the data consistent across the platform.
• Improved organization and accessibility: Centralized data storage makes it easy to find employee information, documents, and records, eliminating the need for scattered spreadsheets and files.

Increased Accuracy and Compliance

• Reduced compliance risks: Employee management systems help companies comply with labor laws and regulations by automating processes and keeping centralized records.
• Data-driven decision-making: When they have accurate and reliable data, HR professionals can make informed decisions about workforce management and resource distribution.

Better Communication and Collaboration

• Easy to exchange information on complex issues: Many employee management platforms have self-service portals and communication tools that allow HR, managers, and employees to communicate directly on issues that would require plenty of back-and-forth messages, like, for example, requesting time off.
• Easy profile sharing: EMS systems can store records of employee profiles so that HR reps and hiring managers can collaborate when defining what a certain team needs for a new hire.
• Easy to upload and organize company documents: Uploading a document is easy on any file-sharing platform. Storing it with Employee Management Software means the files will be stored in an official HR channel.

Choosing the Right Fit: The Best EMS for Your Business

As with every investment you make in your daily life, it would be foolish or naive not to consider your specific needs and budget before purchasing a good EMS.

Here’s a quick guide you can use to decide the best Employee Management Software for your organization:

1. Figure Out Your Needs

• What's frustrating to HR right now? (Too much paperwork? Slow onboarding?)
• Where can the employee experience be improved? (Making it easier to request time off?)
• What tasks take up too much time? (Checking payroll info? Manual data entry?)

2. Consider Your Business

• What’s your budget?
• How big is your company, and how big will it be three years from now?
• What industry are you in? (Some features might be more important depending on your field.)
• What are your data security needs?

3. Pick Your Must-Haves

• Talk to your team! What features do they need most?
• Make a list of the features your organization absolutely can't live without. (Automated onboarding? Tracking employee WFH days?)

4. Research & Compare

• Look for an employee management software with good reviews and a good reputation.
• Make sure it works with the software you already use—for example, it should integrate with Google Workspace or have a well-documented API.
• Does the vendor offer good support to help you get started?

• Can you customize it to fit your specific needs?
• Can you start for free?

3 Top Employer FAQs About Employee Management Software (EMS)

Can EMS integrate with other software I already use?

Yes, absolutely. Many modern employee management solutions offer extensive integration capabilities. This means they can easily connect with existing software like payroll systems, accounting software, and even communication platforms, especially if the solution has a public API.

How does EMS support compliance with employment laws?

EMS supports compliance in many ways. For example, automatic reminders keep you informed of upcoming reviews and expiring certifications. Secure document management allows you to store all employee documents centrally for easy access during audits.

How can EMS help in managing global or remote workforces?

The cloud-based platform provides a centralized hub for accessing employee information and managing HR processes from anywhere, no matter in which country you are. EMS systems have communication systems that help drive some conversations that are not smooth enough when exchanging emails, especially those regarding time off. Tracking employee work hours becomes effortless with features like mobile app integration for clocking in and out.