HR Databases: What are they, how do they work, and why do you need one?

Employee data is incredibly sensitive, but if you’re currently storing this across spreadsheets, emails and paper trails, you are putting this information at risk.  

If you’re battling to store your records securely, it’s time for a change.  

HR databases support businesses in storing and managing employee data in one secure system.  

An HR database can serve as the backbone of your HR department, providing a centralised place for all your employee-related information. In this article, we explore what an HR database is, how it can be used, how businesses benefit from the adoption of an automated system, and the considerations to be taken into account when choosing the right database system.  

What is an HR database? 

You can view it as the central hub for all of your employee data. Human resources professionals use the software to store the information about staff. 

In a database you’ll typically store information along the lines of: 

• Employee records (such as name, address, contact details, emergency contact name and number) 

• Information about your managers 

• Holiday details 

• Absenteeism rates 

• Your work rota schedule 

• Standard working hours 

• Clocking in and out times 

• Timesheets to keep track of your employees’ working hours 

• Business expenses 

• Any other information that assists with workforce management such as analytics and essential payroll information 

That’s it in simple form, but they can also record training or recruitment details—such as maintaining details of applicants who may be useful for your business at a later date. 

There are many legal considerations to keep in mind when dealing with employee or customer data. 

You should know how to store information under GDPR, plus how long you can keep it for current and former staff—and that includes job applicants. 

How can it help your business? 

Basically, database human resource management software helps to streamline your HR processes. It also personal data in a safe and secure environment. 

But an HR database does provide your business with: 

• Efficiency: After launching the software and getting your staff up to speed with it, it’ll streamline your overall HR team’s productivity, accuracy, and skill in completing tasks. 

• Enhance the employee experience: The technology provides you with a chance to process employee data in line with existing laws, but also in a fast and effective way. 

• Cost-effectiveness: In the long-term, the software will save your business money—you can put employees onto other projects as the HR database manages many duties. 

• Increase accuracy: You’ll improve the clarity, meaning there will be fewer errors in HR. 

• Improve regulatory compliance: You can store all the data in one place, so it’s easier to manage the likes of GDPR compliance. 

Transferring employee records and other features 

HR databases provide many convenient features that help your human resources department function well. For example, there’s the process of transferring employee data from old records to new software. 

This may seem like an enormous task if you’re a large organisation, but you can request an HR transfer from business consultants. If you’re already a member, then this is sometimes free. 

It removes all of the hassle of shifting every bit of information off the likes of spreadsheets into a computer system—that can be a laborious task! 

That’ll help determine the storage size requirements for your business. In most cases, databases of employees have plenty of room—they’re adaptable if you need to expand on what you currently have, though. Making them ideal for growing businesses, with plans to scale. 

Then once onboarding is complete, you can start issuing reports and summaries as you need to. This can be across essential employee management areas, all displayed on one dashboard! 

• Absenteeism 

• Performance management 

• Salaries and wages 

• Grievances or disciplinary actions 

• Business perks, such as a company car 

• Shift patterns and employee scheduling 

Does your business need an HR database? 

As a business, you’ll want to store your important human resources information in a secure and stable environment. Ensuring sensitive employee information is safe and stored securely according to UK data protection laws. 

The good news is; these days, a top-quality staffing database is readily available in digital form. 

Large organisations certainly do need a database, but is a small or medium sized business in genuine need for this software? 

Asides from the benefits listed above, the simplicity of the software is also important to remember. Employee database designs are accessible—made to be easy to use so you don’t lose important time getting to grips with the software. 

The whole idea is it helps you to keep track of your employees so you can focus on your daily running. 

You can download employee databases in Excel, too, which helps you to store—or print—important information regarding a specific employee. 

Or if you need to provide a departmental report on any HR activities—such as the total amount of sick leave—then that’s easy to manage. 

And with an employee database app you can also keep track of important information while you’re on the go—whether on a trip or at home for the evening. 

The point of it all is the ease of use—what in the past would have been reams of confusing spreadsheets and reports is compiled into one handy piece of software. 

Ultimately, if you’re looking for something that’ll assist with your daily running then an employee database management system provides many advantages. 

It isn’t essential for your daily running. But it’ll, quietly in the background, consolidate all your essential staffing information. 

The functions of an HR database built into your HR software  

Ever considered an automated HR database that not only provides a secure online storage option but also data analytics for greater insight into your HR processes?  

With an all-in-one HR software, you can store your employee records whilst also benefitting from a range of HR tools and features to streamline people management.  

What’s more, you can provide staff with self-service access. Allowing them greater freedom to access their own records, review their contracts, download company policies and keep on top of their performance reviews. 

Choose award-winning HR software from BrightHR  

With award-winning HR software from BrightHR, all that and more is available at the click of a button.  

With our cloud-based HR software, you gain access to unlimited HR document storage. So, you can store and access your employee files in one, easy-to-access online database. Not only this, but our software provides real-time data so you can keep track of things like employee performance, the hiring and recruitment process, and more. 

Start your free demo today to discover the perks of a digital HR solution and online HR database.