What is an HR database?

An HR database is a system where you store and manage data on your company’s employees. HR databases can be used to track a variety of information, including HR metrics, which give the HR team insights for better decision-making. 

What should an HR database include?

An HR database contains many different kinds of information on a company’s team members. 

While there may be some differences between companies, there are a few common pieces of information that HR databases should include. These include:

• The employee’s name
• Address
• Contact information
• Job title
• Who they report to
• Skills
• Salary 
• Benefits
• Annual leave
• Absenteeism
• Grievances
• Performance review data 
• Training and development programs that the employee has participated in 

How important are HR databases?

An HR database system is essential for companies to manage all the data they have on the people who work for them. 

If there isn’t a proper database, it can be difficult to find information when it’s needed.

A database helps the HR side of a business keep running most efficiently. And, used effectively, it can also help the business make better decisions around its team members. 

Senior management can use an HR database to assess the performance of an individual. A database can also help an organization see how it’s growing and where it can benefit from new hires. 

In fact, an HR database can make the hiring process easier and more effective. Company recruiters can learn from previous hiring processes, and get the information they need to hire the right person for the job. 

HR databases are useful tools for keeping an eye on any upcoming gaps that need to be filled, and which professionals might be good candidates for a promotion.

An HR database can also help the HR team look after their people, making sure that they’re rewarded for their hard work and are receiving the right compensation and benefits for their services.

In short, an HR database is important because it helps a company carry out its core HR work more efficiently and effectively. With it, the HR team can manage and improve the workplace while easily staying on top of KPIs. 

It can save a company time and money, as well as providing HR analytics for valuable insights into its people. 

Privacy and security in HR databases

While HR databases can be very helpful, they also come with associated risks. 

If an HR database isn’t properly secured, it could lead to a breach where the data is exposed or stolen.

The information that an HR database contains is highly sensitive, and can affect all team members of a company. 

So, how do you ensure the privacy and security of an HR database?

You can:

• Restrict database access to authorized professionals 
• Encrypt the data
• Regularly back up the data 
• Have a data retention policy in place, so that the data is only kept as long as necessary 

Benefits of using an HR database software 

Using an HRIS can be a great way of managing an HR database. There are many benefits that come with HR database software, including:

• Central storage: You’ll store all your HR data in one digital place, saving you time and making it easier to access your company’s records.
• Improved efficiency: HR database software can help you manage large amounts of data quickly and easily. 
• Improved security: The right software can keep sensitive information safe and secure, thanks to controlled access—giving you peace of mind. 

HR databases and reporting 

HR database systems come with large amounts of data which can be complicated to unpack and get insights from. 

For HR teams to be able to carry out their work effectively, they need to be able to access that data easily and understand it clearly.

That’s why it’s useful if your HR database software allows you to quickly get the information you need from an HR dashboard, and create reports that are clear and concise—helping you make more effective decisions.