Employee Database Software: A Primer to Managing Staff

It’s important for HR team members to know all the company’s information is safely stored in one secure location. Saving and uploading files into an employee database makes it easier to locate important documents and lets employees know their information is protected. Learn more about what employee database software is, what information is stored on it, benefits of using it and key features to consider when investing in this software. 


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What is employee database software and what’s it used for?

Employee database software is a computer application that human resources team members use to store employee information and company data. Most companies use this software to store their critical information because it’s a secure platform with all their data easily accessible in one place. This streamlines the process of inputting and storing employee information, making it easier for HR employees to quickly and confidently return to their big-picture items knowing their data is safe, secure and accurate. 

Employee database software is also accessible and usable for employees. They’re able to easily find, confirm and update their information listed in the database. Giving employees access to their database files makes them feel more in control and confident that the company has their correct information securely filed.  

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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 for you to easily retrieve in one place. Information you can upload into most employee databases include: 

  • Personal employee information 
  • Payscale and payroll 
  • Employee hire date
  • Time and attendance 
  • Benefits information 
  • Available paid time off and usage amounts
  • New hire paperwork
  • Tax information
  • Training documents
  • Candidate resumes and applications
  • Employee assessments and performance reviews
  • Other HR workflow materials 


Benefits of using employee database software

Implementing an employee database software into your HR processes is a great way to improve your business’ efficiency and productivity in the workplace. Common benefits of using employee database software in your workplace include: 


Advanced collaboration across the organization 

Most employee database software has an employee directory filled with employees’ contact, tax and hiring information. If any of these details change, the employee has the opportunity to easily log in and update their information. This makes employees feel more engaged and in control of their own information. Employees can also input their skill levels, certifications and languages to help team members and managers better understand each other’s strengths, which is beneficial when pairing employees together for certain projects. 


Easy to locate important documents 

Many employee database software programs have organizational systems that make it easy to store and find important information. It allows HR employees to build folders and save items like training documents, performance reviews and feedback, new hire data and tax information. This reduces the need or inconvenience of storing files in separate filing cabinets and struggling to remember where certain documents were previously saved. 


Safe and secure database

These software programs were built to keep employee and company information safe and protected from third-parties. Managers and employees work confidently knowing their information won’t be released and is safe with the HR team. Many database software systems also let HR teams grant access to certain team members, so certain security measures won’t allow any data to leak. 


Streamlined and automated HR processes

Rather than requesting employees fill out employment forms by hand, then inputting them into a separate system, the entire process can be automated and completed in one place. Grant employees access to the database software and allow them to input their information into the platform. This saves HR employees time manually moving information into the system, so they have more time to implement larger office projects. 


Less chance of human error

When HR employees had to enter information into a separate system, the chances of accidentally typing the wrong details were high. An automated process reduces the chance of human error occurring since the employee updates their own information and confirms it inside of the database. The management team also has access to the database and can verify the accuracy of documents as well.


Enhanced employee development

Most employee database software platforms have performance management tools that allow them to track employees’ progress and evaluate their performance. This makes it easier for managers to help employees build goals and create a clear path for career success and development. Employees feel more encouraged and motivated to improve their work performance and meet their professional goals. 


Key features to look for in employee database software

There are many features available on different employee database systems. Pick the ones best suited for your company’s needs, goals and budget. Here are key features to look for in employee database software that will greatly improve your company’s efficiencies: 

  • Time tracking and attendance collecting: Accurately keep track of your employees’ attendance and when they clock in or out for work. This feature lets you access and approve timesheets, then automatically insert this data into your payroll system. 
  • Paid time off and leave management: Employees and managers view any time off requests and track how much PTO is left for the remaining year. 
  • Employee records and information storage: Personal employee information like names, contact information, birthdates, hire dates and salary are all sorted and filed in the database to easily locate, access and update when needed. 
  • Third-party integration: Outside HR or payroll software you regularly use to track employee or company information may be able to integrate with your employee database software to help streamline your process and move all information to one place. 
  • Report creation tools and templates: Any employee or company data or performance metrics saved in your database system is compiled into reports in chart or graph templates that you can use to report your company’s progress to executives.
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