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As a business owner, you’ll want to store human resources information in a safe, secure and stable location. Human resources information is sensitive because it contains workplace complaints, disciplinary problems, drug testing, workers compensation incidents, employee medical issues and more. The best way to store this sensitive data is in digital form.

Let’s take a look at what an HR database is and the benefits of having one for your business. 

What is an HR Database?

An HR database is a central hub for employee information. Human resources departments use this software to track the following types of data:  

  • Employee details 
  • Holiday details
  • Absenteeism rates
  • Work rota schedule 
  • Standard working hours 
  • Clocking in and out times 
  • Employee timesheets 
  • Business expenses 

Because this information is sensitive, there are many legal considerations to consider. You should know how to store this data under HIPAA and the GDPR, as well as know how long you can keep it. This applies to both current employees, former staff members and job applicants. 

How Can an HR Database Help Your Business? 

Once you have an HR database set up for your business, you won’t look back! These databases streamline your HR processes and keep data stored in a safe environment. This way, you can show your employees that you take their confidentiality seriously. 

Here are some of the benefits to expect by having an HR database for your business: 

  • Efficiency. Maintaining an HR database streamlines your team’s productivity. All the information they need to make data-driven decisions is in one central location. 
  • Cost-effectiveness. In the long run, having an HR database can save your business money. Your database will be working for you so your staff can focus on other tasks. Also, keeping sensitive information secure can prevent a costly breach. 
  • Accuracy. When you need to make decisions, it’s imperative that you rely on accurate information. With a database, there are fewer HR errors, allowing you to make sound decisions. 
  • Improved regulatory compliance. Store all sensitive data in one place so that it’s easier to stay in compliance with the GDPR. This also shows employees that you care about their privacy. 

Should Your Business Have an HR Database? 

Chances are, your business can benefit from an HR database. Many small and medium sized businesses are often unsure about this, but based on the benefits above, you can see how these databases can help your business run more efficiently while keeping employee information safe.

In fact, as a smaller business, you probably lack the resources to handle a security breach. Fortunately, you don’t need anything elaborate or expensive to get the job done. You can use Microsoft Access to build an HR database or work with a database expert like Arkware to have one created for you. 

To learn more about HR databases and how they can support your business operations, contact Arkware for a free consultation.