Employee Database Management Software

Employee database management is the process of storing, managing, and tracking all employee information and activities. This data includes:

• Tax information for federal, state, and local withholdings
• Rates and deductions for payroll processing
• Accrual plans
• Current benefits, dependents, and beneficiary information
• Events like pay changes and FMLA leave
• Performance reviews and goals
• Documents requiring signature
• Other important information like hire date, birth date, and length of service

HR departments can refer to this information to decide on training processes, recruiting tactics, benefits offerings, and more. With everything stored in one centralized database, employers can make strategic decisions in a more timely manner.

An employee database management system automates and stores employee records on a secure online server. Employee record software eliminates the need to keep manual records, which reduces data entry and the potential for errors. Many employee database management systems are part of a payroll and HR platform. The employee records serve as the record of truth and feed information into other areas of the system.

For example, an employee’s classification and pay rate are used to process payroll. An employee’s benefits and tax information determine what deductions are withheld from their paycheck.

There are many benefits to using an employee information management system, including:

• Employee data is consolidated into a single location and is accessible anywhere.
• Staff information is stored on a secure server to protect against unauthorized access.
• Compliance risk is reduced because record retention standards are maintained.
• Productivity increases because many tasks and processes are automated.

Employee database management systems are helpful in that they can securely store a variety of information, including job title, length of service, accruals, performance reviews, documents, and more.

Records management has a significant impact on HR departments. Employee records provide a history of that person’s activities during their time with the company. Having access to a complete audit log of an employee record is vital for several reasons:

• Employers have to adhere to records retention standards to ensure compliance with established legislation, such as maintaining W-4s and I-9s.
• Employee records are used to make informed decisions about pay raises, promotions, and career development.
• Documentation such as a signed employee handbook, job application, and performance review goals demonstrate a written account of expected employee behavior.
• Disciplinary actions and conversations with employees are critical to record in the event of a legal proceeding or termination.

Proper management of employee records ensures an employer maintains compliance and avoids any accusations of discriminatory actions.

Furthermore, HR needs to store and manage employee records properly because this facilitates monitoring productivity and performance. Employee records management is essential to support career development and business growth.