22 of April, 2025

Having a employee database in a company is essential for properly managing various HR department functions. These functions could be: employee evaluation, personnel and candidate management, career plans, among others. A point where having the right tools will be very important for managing your company’s human resources database.

Therefore, you must also keep in mind that the human resources database not only works to manage present employees in the company, but also to visualize future additions. Keep reading and learn more about this tool.

What is a human resources database in a company?

A company’s human resources database is a data storage and accumulation system, all properly classified and available for processing and obtaining information. It is, basically, a set of logically related files.

It is an indispensable tool for efficient human capital management. It is an organized system that stores detailed information about a company’s employees. This database includes personal data, work history, performance evaluations, training, skills and much more.

The use and efficiency of information is greater with the help of the database. Not only because of the reduction of memory for files, but also because logically linked data allows integrated and simultaneous processing and updating.

Currently, it is very common to see databases related to each other through software that develops the functions of creating and frequently updating files, also to retrieve and develop HR reports.

Maintaining the HR database

A vital point that few talk about is the maintenance that must be given to a human resources database. Or, in fewer words, keep all the information that appears there up-to-date and error-free. For ideal maintenance, follow these tips.

Eliminate all duplicate information. Duplicates are a common problem in the database. You must constantly assess the existence of duplicate information, remove anything of slight value or, in such case, combine it with the most interesting information you can extract.
Unify the database. It is very common to have multiple employee data scattered among several files. You should try to bring together all the information you have and, by doing so, avoid misuse of storage space and have everything well organized.
Eliminate unimportant information. It is about eliminating, basically, junk files. And by this we mean all those that do not provide any value or benefit or that are false.

Other key aspects to consider for effective maintenance are:

Regular updating. It is essential that data are constantly updated. This includes the incorporation of new employees, updating the personal and professional data of existing employees, and deletion of obsolete records.
Data security. Implementing robust security measures is essential to protect sensitive information. This includes the use of encryption software, secure passwords and restringed access policies.
Legal compliance. Make sure your database complies with all current legal regulations in Spain, such as the GDPR and the LOPDGDD. This involves not only data protection, but also ensuring the employees’ right to access their own data and correct errors.
Backups. Making periodic backups of the database is vital to prevent loss of information in case of technical failures or cyber attacks.
Internal audits. Performing regular audits to verify the accuracy of data and the effectiveness of security measures can help identify and correct potential problems before they become larger issues.

Essential characteristics of a human resources database in a company

In HR, databases can obtain and store data from various levels of complexity. Among the essential characteristics that every database must have to be considered complete and usable, the following should be included:

Comprehensive information

The database must be capable of storing a wide range of information about each employee, including:

Personal data. Name, address, date of birth, marital status, etc.
Contact information. Phones, emails, emergency contacts.
Work history. Previous positions, promotions, department changes.
Education and skills. Academic degrees, certifications, training courses.
Employees’ data from each area or section. Department, division; everything that constitutes a section record.
Salary and incentive data and information. Everything that constitutes a compensation record.
Performance evaluations. Results of periodic evaluations, goals achieved, areas for improvement.
Social benefit and service information. This allows for a complete record of benefits within the company.
Candidates’ data. All records of training activities and courses, training, etc.

Accessibility and usability

A good HR database should be accessible and easy to use for both the human resources department and other company directors. This means that:

Intuitive interface. The software should be easy to navigate and use, even for those who are not tech-savvy.
Remote access. In today’s flexible work environment, it is important that the database can be accessed from anywhere and at any time.
Access permission. Access levels should be established based on the user’s role, ensuring that only authorized persons can view and modify sensitive information.

Integration with other systems

The ability to integrate with other business systems is fundamental. This includes:

Payroll systems. For efficient management of salaries and benefits payment.
Performance management software. To synchronize evaluations and objectives.
Time and attendance management systems. For tracking of hours worked, absences and leaves.

Legal compliance

As mentioned before, compliance with legal regulations is crucial. Make sure your database allows:

Consent management. Collection and management of employees’ consent for the use of their data.
Right of access and rectification. Facilitate employees’ access to their data and request corrections if necessary.
Data protection. Implement security measures that comply with current data protection regulations.

Basically, these are all the features or sections that a human resources database in a company should have. All of these are designed to keep a completely accurate record in the company about the data of the people who make it up. Over time, this gives many benefits to the company in terms of organization and optimization.

In what areas can people’s data analysis have an impact?

Staff turnover

Among other things, the data tells us why the best employees leave. The use of offboarding surveys, in addition to annual engagement surveys, reveal the reasons for a high turnover rate. From that point on, we should act accordingly to try to solve the problem by clearly improving the employee experience.

Company culture

Data analysis helps us to assess the challenges that the organization’s corporate culture faces and to strengthen the team’s commitment to it. It is clear that the leader will be in charge of promoting and shaping it, and what better support than data for this.

Talent management

Among other things, data allows us to relate performance to goals and growth. Resources like performance evaluations offer key information when managing the workforce, relocating workers, training them, etc. This way, it’s easier to find the right place for each employee in the organization.

First steps with people analytics

One of the common problems of data analysis applied to HR is that we don’t know where to start. The first thing is to know what data matters. To do this, it is necessary to be able to access objective company data in real time. The tool we use must meet three requirements:

Up-to-date and reliable, which will help us know what is happening in the company and act more quickly
Easy access, with dashboards and control panels that simplify analysis and activation
Connection to key business data of the organization

A common mistake is to limit data to the result of the performance evaluation, but this is not enough. People analytics technologies offer us real-time information, and in the smart dashboards we can analyze accurate data and design an action plan. This way, we make strategic decisions to improve the employee experience and strengthen the impact on the company’s key results.

Don’t forget that it is essential to associate people analytics to the company’s goals. Only then do we ensure that the HR team follows strategies aligned with those of the organization, obtaining the right result.

In short, HR leaders can use people analytics to back up their decisions, provide intelligent information, and work towards a better candidate experience that positively impacts the company’s results.

Optimize the employee DB with HR software

As we already mentioned, there are software that allow you to create and maintain a human resources database in a company. These programs are being highly demanded today thanks to the effectiveness with which they perform and all the processes they optimize in HR.

In this case we can mention Sesame HR, an HR software that has come with the intention of making your work much easier and solving all the inconveniences that could arise within the HR department.

Among its solutions are the creation of HR reports, vacation and work leave administration, development of the onboarding process and, of course, creation and frequent updating of the company’s database.

These are just some of the tasks and functions that you can perform through this advanced and intuitively designed program. Want to discover what else it can do to optimize the HR department? Register and get a free trial for 14 days.

Customer-oriented, both internally and externally, specializing in the definition and implementation of HR policies, as well as talent management, recruitment, and retention. Strong leadership, communication, negotiation, organization, and team coordination skills. Over 12 years of experience in Human Resources.

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iriserrador

HR Content Specialist

HR database in a company: essential features