Employee Database

An Employee Database is a secured system that stores, manages, and retrieves employee data. It can include information such as personal details, employment history, skills, qualifications, and payroll details. This system helps in better management of the workforce and compliance with legal standards.

Last updated: July 23, 2023 8 min read

What Is Employee Database?

An Employee Database is a centralized, organized system where all employee information is stored, managed, and updated. This system can include specifics such as employee's personal details, job and salary history, bank and tax details, insurance plans, time off requested and used, etc. It provides an efficient and effective way for HR and management to track and analyze all information related to employees in their organization.

What Is the History of Employee Database?

The history of the Employee Database has evolved in parallel with the history of computer technology.

In the early days of business operations, employee information was typically kept in paper form. As early as in the 1960s, businesses began using simple computer-based databases to store this information. These were often quite rudimentary and required specialized knowledge to operate.

By the late 1970s and 1980s, relational database management systems (RDBMS) had become popular. Companies started using these to manage their employee data, which allowed for easier indexing and reporting. Applications like dBase and Oracle became common tools used for this purpose.

The 1990s saw the rise of client-server technology and graphical user interfaces, making databases more user-friendly and efficient. Employers started adopting Human Resources Information Systems (HRIS), which were more robust and could handle more complex HR tasks, such as benefits administration and payroll.

In the 2000s, with the advent of the internet, cloud-based systems became more common, enabling real-time data syncing and access from anywhere. In the late 2000s and 2010s, the trend was towards integrated HR platforms that could handle all aspects of employee management, including recruitment, onboarding, performance management, and succession planning.

Today, Employee Databases are becoming more streamlined and technologically advanced, with mobile-friendly platforms, automated features, AI capabilities, and powerful analytical tools to help HR and management make data-driven decisions.

What Are Some Examples of Employee Database?

  1. SAP SuccessFactors: A comprehensive HR management system that covers everything from payroll to employee engagement.

  2. Workday HCM: A cloud-based Human Capital Management platform that includes HR management, business process management, and workforce planning.

  3. Oracle HCM Cloud: An all-in-one HR management system that includes talent management, HR help desk, workforce management, and payroll systems.

  4. BambooHR: An HR software designed for small and medium-sized businesses, offering applicant tracking, onboarding tools, e-signatures, time-off tracking, and performance management.

  5. Zoho People: An HR management system known for its user-friendly interface and customizable features. It provides solutions for leave management, attendance management, and employee self-service.

  6. ADP Workforce Now: A comprehensive HR suite designed to keep up with modern workforce management needs. The features include payroll, benefits, talent management, compliance, and HR management.

  7. UltiPro: A cloud-based product suite designed to deliver the employee experience from recruiting to retirement, including HR, Payroll, Talent, Time and Labor Management, and HR service delivery.

  8. PeopleSoft: Oracle's PeopleSoft provides comprehensive business and industry solutions, enabling organizations to increase productivity, accelerate business performance, and provide a lower cost of ownership.

  9. Ceridian DayForce: A global HR software that provides payroll, benefits, workforce management, human resources, talent management, document management, and analytics.

  10. Microsoft Dynamics 365 Human Resources: A module of the Microsoft Dynamics 365 platform that offers core HR capabilities, like employee profiles and training, leave and absence, compliance, benefits administration, and payroll integrations.

What's the Difference Between Employee Database and Human Resources Information System (HRIS)?

An Employee Database is a repository where all information about employees such as personal details, job history, salary, benefits, and leave records are stored. It can be as simple as a spreadsheet or as complex as a portion of an expansive software application, but its primary purpose is the storage and basic management of employee data.

A Human Resources Information System (HRIS), on the other hand, is a more comprehensive, integrated system that not only stores employee data but also manages and analyzes that data. An HRIS typically offers expanded capabilities such as recruitment management, benefits administration, training and development modules, performance management, and reporting and analytical functions.

In essence, while an Employee Database is purely a data storage tool, an HRIS is a management tool designed to use the data stored to support more strategic HR and business decisions.

What Are Some Examples of Human Resources Information System (HRIS)?

  1. SAP SuccessFactors: A cloud-based HRIS providing functionalities for recruiting, onboarding, payroll, time tracking, learning and development, performance management, and more.

  2. Oracle HCM Cloud: Offers modules for payroll, benefits, recruiting, talent management, learning, and workforce management.

  3. Workday HCM: Provides HR planning, talent acquisition, time tracking, recruiting, and other features in real-time and with cloud-based convenience.

  4. BambooHR: An HRIS designed for small to medium businesses, offering applicant tracking, e-signatures, onboarding tools, time-off tracking, and performance management.

  5. ADP Workforce Now: A comprehensive HR solution that covers payroll, talent, benefits, time and labor, and more for mid-sized businesses.

  6. Zenefits: Cloud-based software designed for small to mid-size businesses, offering an all-in-one HRIS experience that includes hiring and onboarding, compensation and benefits, compliance and risk mitigation, payroll, and a lot more.

  7. UltiPro: Provides comprehensive functionality with respect to recruitment, onboarding, payroll, benefits administration, learning and development, and succession planning.

  8. Ceridian Dayforce: A single, cloud-based platform providing functionalities ranging from HR management, payroll, and benefits to workforce management, talent management, and even services for tax filing and reporting.

  9. PeopleSoft HRMS: A part of Oracle's PeopleSoft suite, providing a comprehensive set of tools designed to help manage global businesses' HR and business requirements.

  10. Kronos Workforce Ready: A unified, cloud-based workforce management platform that includes HR, time and attendance, payroll, scheduling, and more.

What's the Difference Between Employee Database and Human Resources Management System (HRMS)?

An Employee Database fundamentally refers to a system or a tool used for storing and managing information about an organization's employees. This may include basic personal details, employment terms, salary information, performance records, time tracking, benefits, and other relevant data. It primarily focuses on data storage and retrieval.

On the other hand, a Human Resource Management System (HRMS) is a more comprehensive, integrated platform that combines several functions related to human resource management, including the functionalities of an employee database. In addition to storing and managing employee data, an HRMS includes tools to handle recruitment, onboarding, performance appraisal, learning management, benefits administration, payroll, talent management, analytics, and reporting. It is designed to automate and streamline HR processes, improve tracking and analysis of employee data, and support strategic decision-making.

In summary, while an Employee Database is mainly about storing and managing employee data, an HRMS offers much broader functionality, integrating numerous HR processes into a single system.

What Are Some Examples of Human Resources Management System (HRMS)?

  1. Workday HCM: A cloud-based HRMS offering modules like recruiting, talent management, payroll, and time management.

  2. SAP SuccessFactors: A comprehensive HRMS providing various modules such as recruitment, onboarding, compensation and benefits management, performance and goal management, and learning and development.

  3. Oracle HCM Cloud: Provides a wide range of services from recruitment, talent management, learning, compensation, and benefits to global HR, workforce management, payroll, and HR help desk.

  4. BambooHR: A system designed for small and medium businesses, which includes tools for hiring, onboarding, compensation, and performance management.

  5. Zenefits: An all-in-one HRMS designed for small and medium-sized businesses, which includes modules like hiring and onboarding, pay and benefits, HR and IT, and compliance.

  6. ADP Workforce Now: A comprehensive HR suite used for payroll, talent, benefits, and workforce management.

  7. UltiPro: A cloud-based HRMS offering recruitment, onboarding, payroll, benefits administration, time and labor management, talent management, employee surveys, and HR analytics.

  8. Ceridian Dayforce: It offers recruiting and onboarding, payroll, benefits, work and pay life cycle, talent management, and document management solutions.

  9. PeopleSoft HRMS: Oracle's HRMS provides a full suite of modules from talent acquisition and onboarding to benefits administration, time and labor, and payroll.

  10. Kronos Workforce Ready: An HRMS that includes workforce management, human resources, talent acquisition, onboarding, time and attendance, benefits, and payroll.

What Are the Benefits of Employee Database?

  1. Centralized Information: An employee database provides a centralized repository for all employee-related information, making it easier to access and manage.

  2. Efficient Data Management: It allows for efficient updating, retrieval, and management of employee data.

  3. Improved Decision-making: With all necessary data stored under one system, managers and HR professionals can make more informed decisions.

  4. Ease of Reporting: Employee databases make it easier to generate reports on employee performance, payroll, benefits, and other key HR metrics.

  5. Compliance: By maintaining accurate and up-to-date records, companies can ensure they're compliant with labor laws and regulations.

  6. Security: Employee databases ensure that confidential employee data is stored securely and access is controlled.

  7. Streamlined HR Processes: With easy access to employee data, HR processes such as performance appraisals, promotions, salary increments, and benefits management can be streamlined.

  8. Reduced Errors: Digitizing employee information reduces the chance of errors that may occur due to manual handling of data.

  9. Time Saving: Consolidation and organization of information save time in searching for and managing data.

  10. Cost Reduction: Streamlining and automating data management tasks lead to cost savings in the long run.

What Are the Potential Drawbacks or Risks Associated With Using an Employee Database?

  1. Privacy Concerns: With the storage of personal and sensitive employee data, there are concerns about maintaining privacy and confidentiality. Mismanagement of data could lead to serious legal implications.

  2. Data Security: The risk of data breaches and unauthorized access remain a major concern. Adequate security measures must be in place to protect this valuable data.

  3. Data Accuracy: There may be issues related to the accuracy of the data if it is not updated regularly. Incorrect data can lead to administrative issues and inaccurate decision-making.

  4. Costs: There can be considerable cost in setting up, maintaining, and updating an employee database system. Smaller companies may find these costs prohibitive.

  5. Dependency: Overdependence on the database means that any interruption of access due to technical problems or outages could disrupt operations.

  6. User Training: Employees and managers need to be trained to use the system correctly and efficiently, which might require additional time and resources.

  7. Complexity: If not properly designed and managed, an employee database can become quite complex and difficult to navigate.

  8. Legal Compliance: There are strict laws around data protection. Non-compliance with these laws can lead to legal issues and reputational damage.

  9. Obsolescence: Technology changes quickly, and database software needs to be frequently updated or replaced to remain effective and compatible with other systems.

  10. Integration Issues: If the database does not integrate well with other existing systems in the organization, it could cause inefficiency or duplication of effort.

Which Types of Businesses Are Likely to Be Impacted by Implementing an Employee Database?

Almost all types of businesses would be impacted by implementing an employee database, as it provides a centralized, organized structure for managing and storing employee information. However, the impact would be especially significant for the following types of businesses:

  1. Large Corporations: These businesses have a significant number of employees, so the ability to efficiently manage and process their data can greatly impact operations and HR management.

  2. Growing Businesses: As these companies scale up their workforce, an employee database can help manage the increasing amount of data and keep information organized.

  3. Businesses with Multiple Locations: Companies with employees in different cities, states, or countries can considerably benefit from having a centralized employee database for easy access to and management of employee data.

  4. Industries with High Employee Turnover: Industries like retail, restaurants, and customer service have high employee turnover rates. An efficient employee database can streamline the HR processes related to hiring, onboarding, and offboarding.

  5. Companies that Need Compliance: For industries like healthcare, finance, and those that have strong compliance requirements, an employee database helps keep track of necessary information to remain compliant.

  6. Organizations with Complex Workforce Structure: In companies with varying employee types (full-time, part-time, freelancers, contractors, etc.), an employee database enables the proper management and tracking of different types of employee data.

  7. Technology Companies: Tech companies, particularly those with remote teams, would significantly benefit from a centralized employee database that can be accessed from anywhere, reducing the complexity of managing a distributed workforce.

Home