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The benefits of an employee database management system

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Last editedFeb 20212 min read

From recruiting and onboarding to employee engagement and payroll, HR has an increasingly significant role to play in enterprise, not least because of the recent rise in remote working. But amidst all this, it’s important to get the basics right. Maintaining accurate employee data should be the bread and butter of the HR department, but in many cases, companies are still handling this valuable data manually. That’s a problem. But fortunately, there’s a simple solution. Enter: employee database management systems.

What is a database management system?

An employee database management system is a cloud-based software package that enables you to manage your employee data and sync it across your other business platforms. Essentially, it allows you to keep track of information like attendance/leave, salary, performance, and so on within one central location. For companies with a large workforce, it’s a vital tool to ensure that HR runs smoothly.

Understanding the pros of an employee database management system

There are a wide range of benefits associated with employee database management software.

Firstly, maintaining your employee data manually is likely to result in errors and operational inefficiencies, especially if you’re running a larger firm. Database management systems can help you cut down on these types of errors. In addition, an employee database management package can help you take HR to the next level via data analytics and metrics. Does one team have an especially high turnover rate? Get to the root cause of the issue with data analytics.

Secondly, it’s important to understand that employee database management provides your business with a central location from which to consolidate your employee data. Rather keeping this data siloed across numerous discrete platforms, an employee database management system allows you to generate reports on your workforce in just a few clicks, while you’ll also be able to access the data when you’re out of the office or outside normal working hours. Bottom line – it’s simply a more efficient way to handle your data.

Thirdly, database management systems are far more secure, keeping your team data protected from external and internal threats. Aside from the fact that robust cybersecurity should be table stakes for play when it comes to businesses with a large workforce, there’s also a legal aspect to consider. With GDPR, it’s more important than ever to mitigate compliance risks. Employee database management software can help you do that – ensuring the highest level of security for your data.

Fourthly, there are operational benefits to consider. Employee management systems can help improve productivity by streamlining routine tasks and providing your employees with more time to focus on other, value-added work that they have on the docket. Moreover, the best employee database software can encourage collaboration, as your employees will be able to find contact information for their colleagues much more quickly. This is especially useful if you have a remote team, where employees may not know one another personally.

Finally, employee database management systems provide your entire team with a simple, bird’s eye view of your organisation’s hierarchy. With large companies, or companies that are growing at a rapid pace, it can be difficult for employees to understand their place within the business’s reporting structure. Providing access to the organizational hierarchy ensures that your team always has the information they need to resolve issues or assign work.

What’s the best employee database software?

There are many different employee database management software packages on the market, including BambooHR, Workable, Zoho, and more. Shop around to work out which one fulfils the needs of your business most effectively, as each software package is likely to have different strengths and weaknesses. Ultimately, the best employee database software for your company may not be the best employee database software for another firm, so be sure to do your research before putting pen to paper on any long-term contracts.

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