Effectively Managing Employees (With Benefits and Tips)

By Indeed Editorial Team

Published June 25, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Proper employee management is often crucial to meeting set goals and the overall success of any company. Successful managers invest substantially towards acquiring relevant skills to ensure they get the best out of every employee. Learning to manage employees effectively can prepare you for a managerial role in your career. In this article, we outline the steps for effectively managing employees, discuss why it's necessary, and provide some tips to help you.

7 steps for managing employees effectively

Managing employees may typically involve the following steps:

1. Recruit the right people

The foundation for effective employee management is selecting a suitable candidate for every role available. An ideal candidate for a position goes beyond possessing relevant qualifications and experience. During recruitment, consider checking candidates for soft skills like enthusiasm, reliability, emotional intelligence, humility, receptiveness, and collaboration. While this may make the recruitment process longer, ensuring you get the right candidate can help prevent compatibility issues.

2. Create a conducive work environment

Ensuring the work environment is comfortable and accommodating is another step you can take to get the best out of employees. An adequate environment typically requires certain physical and emotional elements. Physical factors may include the arrangement of the office and the availability of tools necessary to work. Emotional or mental factors may relate to the relationship among colleagues. When organizing the work environment, consider asking for input from employees to understand their preferences.

Read more: Top Management Skills Every Manager Needs

3. Create open communication channels

Communication is often crucial to the success of many relationships, including those in the workplace. Creating communication channels that are easily accessible to everyone can help encourage the exchange of information and ensure you receive vital feedback. Through these channels, you can help monitor employee progress, address urgent issues, and collaborate with your team members more effectively to meet targets.

4. Set clear goals

Defining clear goals is another way to manage employees effectively. Establishing objectives and setting expectations for your team is one way to provide a unified sense of direction and coordinate efforts properly. When employees know what they're working towards and are aware of their responsibilities, it can help them work more effectively. Consider applying the SMART criteria when setting organizational and employee goals.

Read more: Setting Communication Goals Using the SMART Method

5. Evaluate performance regularly

The next step is to schedule performance evaluations with staff regularly. This exercise can be a powerful tool for ensuring efficiency and effectiveness in the workplace. During performance evaluation meetings, a manager can check employees' progress with their tasks. Employees can also take the opportunity to seek clarification and advice if needed.

Read more: Tips for Conducting Employee Evaluations (With FAQ)

6. Recognise and reward hard work

Introducing a reward system is another step in successful employee management. Companies usually link their reward systems to employee performance. These rewards may include monetary or non-monetary benefits and employee assistance or recognition programs. This can help motivate employees to work more effectively. Consider using a combination of benefits to encourage maximum productivity when creating your reward strategy.

Read more: What Are Reward Systems? (Including Benefits and Examples)

7. Invest in employee development

The final step in the process is investing in the development of employees. This involves committing resources toward improving employees' work quality by expanding their skill set. Acquiring new abilities can help employees become more efficient and effective. It also helps them accommodate additional challenges and responsibilities that allow them to contribute more to the team. There are typically four broad approaches you can take for employee development:

  • Formal education: This approach involves providing employees with various traditional educational programs, including short courses, internal or external workshops, or university courses.

  • Assessment: This approach entails collecting information about employee behaviour and skills and providing them with feedback. Companies may typically use this approach to identify employees with the potential to become managers.

  • Job experiences: In this approach, managers usually encourage employees to expand their skill set by putting them in positions that require skills they don't currently possess.

  • Interpersonal relationships: This approach involves interacting with a more experienced team member. Mentoring and coaching are two types of relationships used for employee development.

Read more: How to Increase Employee Engagement (Short Term and Long Term)

Importance of employee management

Using proper employee management techniques can be beneficial for the following reasons:

  • Better workflow: Effective employee management can help you establish a proper structure in your team. This can help simplify workflows and quickly identify and resolve any potential complications.

  • Increased motivation and productivity: Using the proper techniques can help keep your team's motivation at optimal levels. Employees typically work harder at their jobs when motivated, thus increasing productivity.

  • Improved job satisfaction: Employee retention refers to a company's techniques, guidelines, and general strategy to keep its staff and reduce turnover. Proper management can help employees feel happier at work and encourage them to stay longer at a particular company.

  • Increased data security: A company's data security has become even more essential with the increase in remote and hybrid work environments. You can keep confidential files and data away from unauthorized access through effective employee management by implementing a verification process.

Read more: Understanding Why Employees Leave and Ways to Retain Them

Tools for managing employees

You can use the following tools for effective employee management:

  • Performance monitoring tools can help you keep track of employees' performance, as they allow you to quickly identify which task an employee is working on and how long they spend on it.

  • HR management tools can help you manage essential HR processes and administrative tasks.

  • Communication tools can help your team regularly stay in contact to ensure a smoother workflow.

  • File-sharing tools allow you to share project files to keep relevant team members updated on the project's progress. They're usually cloud-based solutions.

  • Project management tools can help you allocate and redistribute tasks to ensure a project stays on course.

Read more: Fun Activities at Work to Increase Employee Engagement

Tips for effective employee management

Consider using the following tips to manage employees effectively:

Be consistent

Managing employees requires consistency in your approach, and applying the guidelines to everyone equally is essential. When you reward some behaviours in an employee, ensure that you also reward others that display the same work ethic.

Lead by example

Setting an example of how you want employees to behave can be an effective management tool. Whatever traits you want employees to adopt and exhibit, modelling those traits can get them there faster than any other strategy you might use. You can exemplify several employee qualities, such as punctuality, composure, diligence, and hard work.

Know your team

Companies typically comprise many individuals with unique features, motivations, and ideas. Using the same management style for all employees may not yield the desired results. Consider working closely with each employee, learning what makes them unique, and deciding on the most appropriate approach to optimize their performance.

Read more: Defining Employee Referral Programs (Plus Their Benefits)

Be transparent

Transparency means maintaining an open and honest communication channel. It entails making your practices and approaches visible and clear to all team members. This can help you build better relationships with employees, as it may improve trust among your colleagues.

Allow everyone to contribute

Ensure every employee gets the opportunity to participate in discussions and decision-making. A collaborative work environment can be helpful to your team, as more opinions and ideas can help you reach well-rounded conclusions. Enabling team members to share their thoughts can encourage them to generate better ideas and make them more comfortable being involved.

Build trust

Effective employee management requires the deliberate cultivation of trust between managers and employees. Avoiding micromanagement and respecting employee privacy are ways to do this. When team members trust you, they may be more willing to communicate about sensitive issues and value your guidance.

Read more: How to Improve the Employee vs. Employer Relationship

Listen and ask questions

Good listening skills are another tool that can help you manage employees effectively. Listen to feedback, especially when someone disagrees with a management decision or an instruction. Asking insightful questions can also help you understand their perspectives better and increase your chances of identifying the problems and finding a workable solution.

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