By investing in people management tools, you can simplify your employee management tasks and ensure your data is protected. Depending on your goals, the best people management tools can involve HR, payroll, and tax software programs. When you choose an all-in-one option, you can enjoy all of your favorite benefits without having to worry about duplicating data or downloading multiple programs.
What Types of Data Need To Be Managed?
While each industry is different, there are a few common types of business data that need to be created, managed, stored, and shared in a digital format.
Direct Deposit Information: Once someone brings in their direct deposit information, it needs to be linked to your payroll system so that they can get their paychecks. The best payroll software will even let employees divert a percentage of their paychecks to different accounts. Additionally, payroll tools can help you manage wage garnishments.
I-9 Forms: You are legally required to get an I-9 from every prospective employee. Then, this information must be properly stored so that you are prepared in case there is an audit in the future.
Personal Information: Employees provide you with their names, birth dates, Social Security numbers, and other personal information when they are hired. All of this data needs to be kept secure.
Performance Evaluations and Appraisals: Over the course of an employee’s career, they will receive many different performance evaluations and appraisals. All of this documentation must be kept on file.
Confidentiality Agreements: Depending on your organization, you may also need to store confidentiality agreements to protect against future issues.
Employment Information: An individual’s employment information may include their job title, start date, work location, and compensation details. Besides maintaining this information for your normal business purposes, it’s a good idea to have it on hand in case a lender or future employer needs to confirm details of the individual’s employment history.
Time Tracking and Attendance: The best people management tools allow you to easily look up an employee’s time tracking and attendance records. When the time tracker is synced with your payroll software, it makes it easier to create accurate, timely paychecks for your workers.
Tax Forms: As an employer, you’re supposed to create and file W-4s, W-2s, 1099s, and similar tax forms. The right people management tools can generate these forms for you.
Disciplinary Actions: If you have to take any disciplinary actions against an employee, you will need a program that can store the records in case you need to refer to them later. Additionally, you’ll want a clear record of disciplinary measures before you terminate an employee.
Benefits: People management tools are an excellent way to manage employee benefits. Payroll features allow you to track who is eligible for benefits. When someone signs up, their personal information, such as their name or the number of dependents, can easily be transferred to the employee’s benefits forms.
Salary and Compensation: Over time, an employee’s salary and compensation is likely to change. Besides tracking this information for your current use, you may also want to have this information on file in case your company faces a discrimination lawsuit involving unfair raises. Thanks to solid data tracking, you can immediately access information that can bolster your case.
Tax Withholding Information: A people management tool is a convenient location to store tax withholding information so that you don’t get penalized for withholding the wrong amount.
Employment Agreements: If you have any employment agreements with your workers, you’ll need to store them in a secure location for future reference.
Non-Disclosure Agreements (NDAs): Similarly, you can store NDAs in different people management software programs.
Training History: To make sure you are properly training employees on their jobs and important compliance rules, you need a location where you can store the worker’s training history and plan for their future training sessions.
Performance Improvement Plans (PIPs): Finally, you’ll need to track PIPs to determine if workers are making progress and if there are any next steps you should take. Additionally, you will want to have access to PIPs if a former employee re-applies and you want to know what their previous job performance was like at your organization.
What Is a People Management Tool?
With a people management tool, you can get a human capital management (HCM) and payroll system in a single package. This type of tool typically covers payroll processing, taxes, and HR functions. Through this kind of all-in-one tool, your company can grow with ease. You can ensure legal compliance and streamline your data.
People management tools aren’t just important for simplifying business practices. By improving your management tools and making it easier for employees to update their information, you can increase employee engagement and boost morale.
How Can People Management Tools Help You Manage Data?
From HR software to development tools, there are a variety of people management tools that can help you run your business. Depending on the type of tool you choose, you can enjoy having a range of different benefits.
Streamline Data
When you use people management tools, you can have an all-in-one place for your data. Instead of duplicating the same data in each software program and potentially making a mistake, you can update data in one location and have it immediately sync in every other software program.
Avoid Duplicating Data
By having your data in one spot, you can avoid duplicating data. Besides being more convenient, this can also reduce the risk of duplication errors.
Save Time and Money
The average business spends $4.78 for every manual HR data entry they have to do. By incorporating people management tools into your workplace, you can save time and money.
Manage Benefits Faster and Easier
People development tools aren’t just an important way to save time and money. They are also more accurate. Because these tools are automated, they are faster and easier to use for managing benefits and other HR functions. When an employee is eligible for benefits, the software can automatically upload their personal information and information about dependents.
Ensure Legal Compliance
As a small business owner, you should focus on what you do best: running a business. Spending hours learning about the latest changes to payroll taxes and HR regulations isn’t the best use of your time. By investing in people development programs, you can outsource your legal compliance to skilled professionals.
Protect Data More Effectively
Businesses have a duty to protect their workers’ personal information. Cybersecurity incidents can cost the average small business anywhere between $826 and $652,587. While over half of cyberattacks target small businesses, 54% of small businesses say their IT departments aren’t ready to handle a complex attack.
For many small businesses, paying for a cybersecurity team and a dedicated IT department is a fiscal impossibility. By using HR and payroll software, you can protect your data without having to pay for an entire department of cybersecurity professionals.
Generate and File Tax Forms
With payroll and tax software, you can easily generate all of the tax forms you need to file. For example, high-quality tax software can create W-2s, W-4s, and 1099s for your workers. This exceptionally convenient feature helps ensure your compliance with the tax code.
Make Accurate Payroll Payments
Because payroll software can be integrated with your time-keeping program, you can instantly run your payroll at the end of each pay period. Software programs are more accurate than human workers. Additionally, you don’t have to spend as much money on labor when a software program runs the numbers for you.
Learn More About Top People Management Tools
People management tools, like HR and payroll software, help to simplify the day-to-day tasks involved in running a small business. Beyond ensuring your legal compliance, these programs also help your organization become more productive and efficient.
To learn more about the advantages of using people management tools in your company, reach out to Asure’s team of small business payroll and HR experts today