HR databases and their importance in organizations

18 of October, 2022

Deciding who deserves to be promoted, identifying which department needs more staff or even knowing who is the best candidate for a position. These are just some of the functionalities that HR databases allow within a company.

The so-called ‘human capital’ managers should not be left out of the technological progress that companies are undergoing and they should get involved in the latest trends. In this sense, a people database is a powerful tool for optimizing work.

Definition of human resources databases 

A database is basically a computer system on which data can be stored in a structured manner and with almost no redundancy.

All this information is stored digitally in a server so that any staff member (depending on the level of access they are granted) can view data anytime. The server, the support and the consultation tools make up the whole structure of the computer system. HR databases are a fundamental element for an HR department to work properly. This is because it will allow human resources managers to effectively organize the information they have on employees and their work climate. Besides, it will allow them to analyze it and generate a plan based on the needs they are able to detect

What does a human resources database contain?

Among the items that should be present in an organization’s human resources database, the following are the most important and common ones:

• Personal record: it contains all data related to employees, such as age, salary, seniority, skills, emergency contact, etc. 
• Sections: it shows the areas of a company and the members that are part of each one of them.
• Position record: this shows the company’s organizational chart, detailing the responsibilities of each employee and their positions.
• Activity record: it compiles all the important information on the different initiatives in which each employee has taken part, such as training, projects, and programs, among others.
• Compensation record: this keeps all data related to salaries and incentives received by employees and managers.

Advantages of HR databases in a company

• It facilitates interconnectivity: as data is hosted on a server, it is possible for anyone with access to check the information from anywhere and at any time.
• It optimizes work: as data is stored digitally, the stored information can be analyzed in real time by means of pre-established algorithms.
• It provides a much better view of employee talent: using this tool, HR managers can see which employees have the most potential and in which specific areas.
• It helps identifying work needs: thanks to this support, organizations can easily discover which areas need to be reinforced or which vacancies need to be filled. Thus, it contributes to the creation of a recruitment plan that responds to the actual demands and determines the ideal profile in the recruitment and selection processes.
• It allows for determining who the leaders are: an analysis and evaluation of the data stored in the big data will show the leadership skills of all workers.

In this way, a human resources database in a company ends up being a beneficial tool. In short, having all the information of your company’s employees organized and stored in a server will allow you to access it whenever you need it and from wherever you are.

Employee database software

As we have already mentioned, the human resources database is a computer system. It is also known as a software that stores all the information related to the HR department of an organization.

In this section, Sesame stands out as a very innovative, efficient and intuitive HR software.

We say that it is innovative thanks to its large data storage capacity and all the features it has. It’s effective because it manages to meet all the needs of any company or client and it is intuitive due to its ease of use.