Your Guide to Developing the Best People Management Software Solution

Employees expect their employers to invest in their careers and provide possibilities for professional advancement. Employers want their employees to be fluid enough to adapt to changing business conditions.

Human capital management can deliver on both objectives.

When human resource managers effectively manage employees, it can result in a more engaged and productive workforce, and employee management software can help make the process go more smoothly. Workforce optimisation can benefit your organisation whether you have a human resources department or not.

Considering that HR-related charges are some of the highest expenses made by an organisation, employee management system integration with the accounting system is invaluable for finance teams. Leading suppliers will go above and beyond basic accounting to assist a business in extracting more financial insights from HR data.

What Is the Purpose of Employee Management Software?

Employee management software is defined as a comprehensive set of employee management tools that a company requires to manage employee data, engagement, and performance while also driving additional value across the organisation. These systems can handle all employee-centric HR activities from recruitment through performance and offboarding, not just storing and managing confidential employee data.

Functions Of Employee Management Software 

It’s helpful to think in terms of functional components when deciding which employee management system is best for your organisation. Modern systems, on average, cover seven domains with varied degrees of focus.


  • Candidate management 

Refers to job offers to applicants and how you market your company to the outside world as well as present employees who may want to apply for internal positions or make referrals. This is a must-have for firms that prioritise the applicant experience throughout the hiring process, from applying for jobs to managing resumes, arranging interviews, and making offers, all the way through onboarding.

  • Employee engagement

People who are more engaged are more likely to create higher-quality work, completely embrace the company’s values, and carry out its vision, therefore how an employee interacts with management and co-workers is crucial. The HRMS is frequently used to finish training courses, learn new skills, advance in a job, achieve recognition, or become a mentor. In the 2019 Gallup State of Global Workplace report, it was reported that within Australia and New Zealand, 14% of employees were engaged, 71% were disengaged and 15% were actively disengaged. At a global level, they found only 23% of employees were engaged while the rest (67%) were disengaged or highly disengaged.

  • Employee management

This feature provides a central interface to assist with analysis, reporting, and compliance. It’s where you organise your personnel into organisational units like departments or locations, define manager-employee reporting connections, and link payroll to accounting cost centres. This function is the cornerstone of initiatives to give employee self-service, maximise reporting, and improve HR service delivery because it is where personal information is recorded and preserved.

  • Optimisation

A major selling feature is using data from the employee management system to create a vision for the future workforce. Companies that take a proactive approach to workforce optimisation are more adaptable to change, have stronger staff retention, and have more employee engagement. The true significance of this function frequently comes to the fore with a merger or acquisition, severe economic swings in either direction, or when CEOs leave.

  • Payroll

Calculating earnings from gross to net or net to gross, withholding specific deductions, and making payments is a fundamental function of the employee management system. Benefit elections and both employee and employer charges are included in payroll functions. Tax filing and deposits are also automated with full-service payroll solutions. Employees can make changes to their elective deductions, direct deposit accounts, and tax withholdings, as well as get copies of their earnings statements, using self-service functions.

  • Workforce management 

HR teams use this system to keep track of employee development, management evaluations, and disciplinary actions, as well as to track time and attendance and ensure that the organisation provides a healthy and safe working environment. Compensation planning, performance management, learning, and incident recording are all located here.

  • Contingent workforce management 

Primary workforce management is important for businesses where not every employee works full-time. Contractors, consultants, interns, and temporary employees supply specific expertise, promote local community activities, and handle surges in labour demand. Because these employees are not always on the payroll and are usually not eligible for benefits, the employee management system does not fully manage these relationships; however, the work they do is critical to the company’s success, and it’s critical to keep track of how many contingent employees are on board at any given time as well as the total costs.

Employee Management Software Features

HR, IT, finance, and other stakeholders should carefully examine which of these employee management system capabilities are must-haves for the organisation, just as they should with broad functionality.


  • Benefits administration
  • Centralised employee records
  • Learning management
  • Reporting and analytics
  • Rewards
  • Talent acquisition
  • Talent management
  • Time and attendance
  • User interface
  • Workforce planning


Benefits Of People Management Software

The most basic benefit of an employee management system is having all your personnel information in one place. This reduces compliance concerns, provides a comprehensive data collection to support decision-making, aids employee engagement, and makes HR professionals and procedures more productive.

Employees and managers create data in a variety of places, from spreadsheets to expense apps to paper records, making it impossible to acquire a full view of workforce costs without an employee management system. All data is in a single bucket with a greater level of integrity when using an employee management system. This allows for better and quicker decision-making. It’s also critical to a workforce planning and analytics program, in which a company evaluates its current staff and compares it to future demands based on business objectives.

  • Improved employee engagement: 

The importance of an employee management system in developing and keeping talent is something that HR leaders are enthusiastic about. HR may develop training curriculums, customise learning programs and career trajectories, and set up mentorships using an employee management system.

  • Process efficiency & a culture of self-service: 

HR can set up a knowledge repository within an employee management system so employees and managers can discover answers to frequently asked questions, and employees and managers can safely access their own information, allowing HR to focus on more value-added services.

  • Lower back-end overhead: 

The centralised nature of an employee management system—particularly one developed in a fully cloud-based, software-as-a-service model—requires less hardware, data centre space, and IT and development staff resources for maintenance, support, and training from an IT and capital budget standpoint. This reduces IT spending on HR technology, necessitates fewer help desk workers, and enhances overall satisfaction among full-time users of an employee management system, namely the HR team.

  • Faster recruiting: 

HR professionals are also passionate about attracting top personnel and establishing your company’s reputation as “the place everyone wants to work.” Using job boards and mobile applications, an employee management system connects recruiters and candidates online, making the process more pleasurable and efficient.

Features To Look for In Employee Management Software

Employee management software is widely available in the HR technology market. HR managers must carefully identify their goals before selecting an employee management software solution. Then consider the HR functions that will be performed using this program.

While practically every organisation is unique, and HR technology demands differ by industry, there are a few requirements that are universal across all businesses, regardless of size or industry.

Appello Software is Australia’s leading app and web development company. We offer complete employee management software solutions to develop, enhance and manage effective managers, highly engaged employees, and top-performing organisations, so reach out for an initial consultation of your situation.

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