Employee groups are used to group employees into categories which yo can define. Employees can only be assigned to one group at a time. How you use the groups depends on your business. You may want to group employees by department, or it may be more appropriate to group them by work type (e.g. permanent, employees, part time).
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Employee groups are used throughout the application to provide a way of filtering data whenever viewing the employees. In addition to this, you can also assign projects and project to groups, and there are several permissions which are based on group (e.g. run time and cost reports for a specific employee group or edit timesheets for a specific group.) Employee Group is also a standard filter found on almost every available report.
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Groups can be maintained from the Lists page. To access this, select Settings->Lists from the main menu.
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To configure the employee's group, edit their record on the Employees page.