What is employee database software, and how is it used?

Employee database software is a computer application used to store employee information and company data. Many companies use this type of software because it makes data easily accessible to managers, HR staff and other key employees. Employee records software also has built-in security features, which may prevent unauthorized individuals from accessing confidential data.

Many software packages are also accessible to employees. With the right software, your team members can easily find, confirm and update their information. Giving employees access to their files can make them feel confident that the company has the correct information.

What information is stored in employee database software?

From new-hire information to employee assessments, most employee database software programs store an abundance of data. Depending on which platform you choose, you may be able to upload the following:

• Employee contact information
• Payroll data
• Salary scales
• Employee hire dates
• Time and attendance
• Benefits information
• Available paid time off and usage amounts
• New-hire paperwork
• Tax information
• Training documents
• Employee assessments and performance reviews
• Other HR workflow materials

Benefits of using employee database software

Implementing an employee database software can help improve your company’s efficiency and productivity. These are some of the most common benefits of using an employee database.

1. Advanced collaboration

Most employee database software has an employee directory filled with employees’ contact, tax and hiring information. Employees can also input their skill levels, certifications and languages to help HR team members and managers better understand their strengths, which is beneficial when choosing employees for projects.

2. Enhanced document security

Many employee database software programs have systems that make it easy to store and find important information. HR employees can build custom folders and save a variety of documents. This reduces the need to store hard copies in filing cabinets, making it easier to remember where certain documents are.

3. Streamlined HR processes

An employee database may help streamline various HR processes, such as requesting digital signatures on important documents or allowing employees to enter and update their own information.

Using employee database software can help increase accuracy as employees can review their personal information and confirm that it’s correct, creating an extra layer of protection.

Key features to look for in employee database software

Employee databases have many features, so it’s important to pick the ones best suited to your company’s needs. Here are some key features to consider:

• Time tracking and attendance management: Time tracking lets you track the number of hours worked and the amount of sick, vacation, personal and bereavement time used. You may even be able to approve employee timesheets and send the data directly to your payroll system.
• PTO requests: Some systems allow employees to submit PTO requests for approval. Managers can view the requests and approve or deny as needed.
• Employee records storage: One key feature of employee database software is the ability to create employee records. Look for a system that allows you to input names, addresses, telephone numbers, salaries and other important information.
• Third-party integration: Many vendors let you integrate their software with third-party apps, enhancing its functionality. For example, if you use a separate payroll system, you may be able to integrate it with your employee database.
• Reporting: Employee databases often come with built-in reports to help you track key metrics, such as your turnover rate and your average salary. You may even be able to create custom reports, making it easier to monitor what’s happening in your business.

Employee database options to consider

If you’re ready to implement software for employee database creation, consider one of the following options.

BambooHR

BambooHR combines employee files with payroll and benefits features, giving your HR team more control over their day-to-day work. The portal allows you to track hours worked, PTO balances and other metrics. BambooHR also comes with pre-built reports to help your HR team monitor company trends and reduce the amount of time it takes to respond to employee queries.

If you don’t have a separate applicant-tracking system, you can also use BambooHR to track job openings, screen applications and perform other recruiting activities.

ADP Workforce Now

ADP Workforce Now is an HR platform with multiple modules. The standard version comes with basic HR and payroll features, but you can upgrade to access the insurance, time and attendance, retirement and benefits administration functions.

If you operate a multinational company, you can even use ADP Workforce Now to create a single database for all employees in the United States and Canada.

Zoho People

Zoho People is a cloud-based employee database, so your team members can access it from almost anywhere they have internet access. The Core HR solution includes multiple features, such as employee management, onboarding, PTO management and HR analytics.

If you need extra features, you can add modules for time and attendance, employee engagement and/or employee development.