What is an HR database?

HR databases are repositories of employees' personal information that are used by HR professionals to keep track of their staffers. HR database software for small businesses holds not only employee details but also information such as holidays, working hours, expenses, timesheets, and possibly any other data that can help in managing the workforce. To dive deeper, the include —

·   Names, contact details, phone numbers, and addresses of employees.

·   Information about the management hierarchy.

·   Rates of absenteeism.

·   Work rota schedules.

·   Holiday details.

·   Clocking in and out times.

·   Standard working hours for each employee.

·   Timesheets that track working hours of employees.

·   Recruitment details such as contact information of applicants.

Why do businesses need an HR database?

In a time when work-from-home has become the norm and has made workplaces fragmented, streamlining human resources information is as challenging as it is important. HR software is helping businesses manage various forms of data and for different purposes. There are several systems such as HRIS, HRMS, and HCM that help with recruitment, employee onboarding, applicant tracking, time off, and HR reports.

As organizations become bigger and regulations around obtaining and storing employee data are revised, HR departments do not have a choice but to rely on HR databases that utilize such information responsibly. While most organizations use some form of HR tracking database software, it is important for management to understand if it is the right fit for them.

Apart from the need to store data pertaining to the management of a body of staffers and run a workplace, the purpose of HR databases is to streamline HR processes. Businesses need to keep records of data for various purposes. Some of the reasons why a business must maintain an HR database are as follows—

Monitoring employees:

Businesses must monitor all records of sicknesses, grievances, absences, and disciplinary cases that an employee may undergo. This is important to get a measure of employee productivity and formulate a plan to serve the needs of workers who help them achieve the company goals.

Enhancing accuracy:

Increasing the accuracy of HR processes is the very purpose of using the best HR database software. Storing data in a comprehensive manner would translate to enhanced clarity and fewer errors.

Improve employee experience:

By using technology to create an HR database, employers can process employee data efficiently while also adhering to regulatory measures and laws around data security.


Instead of assigning employees to operations involving the maintenance of HR databases, one can simply purchase HR database software for small businesses. This way, they save money in the long run and utilize their employees’ time for other projects.


Once HR professionals are trained in using database software, they can streamline HR productivity, optimize its skills and accuracy to improve overall efficiency.

Add value to people management:

Data, analytics, artificial intelligence, and machine learning can all help HR departments add value to an organization and ensure optimal performance from employees.

Achieve goals through a people-centric approach:

HR professionals can use data to understand the impact employees have on the business. It also enables them to help leaders make better employee-related decisions. All this, ultimately, leads to the company being able to achieve its strategic goals.

Types of HR database

HR professionals can maintain databases to serve different purposes. Different databases may be designated to different types of personnel associated with the company. Primarily, HR departments may deem it necessary to have an employee database and a client database.

Employee database:

An employee database would store all information pertinent to each employee of an organization. Some data may be entered by HR professionals, while employees could be entrusted to input other types of data themselves. The accessibility to this data can usually be regulated by HR professionals. Based on the needs of the organization, HR professionals can authorize managers to access certain information. Here is the type of data stored in employee databases:

·   Personal details such as name, address, date of birth, and phone number.

·   Designation of the employee, their job title, role, and department.

·   The length of their employment at the organization and prior experience.

·   Details of their salary, raises, performance and promotions.

·   Recruitment details, qualifications, and additional training courses.

·   Rotas, timesheets, and work schedules at the organization.

Such a database can be used to keep tabs on each employee. Possible applications of an employee database include assessment of employee performance, tracking their eligibility for raises and promotions, monitoring any shift between departments, and preparing for fresh recruitment based on this data.

Client database:

A client database helps HR departments monitor an organization’s customers or clients. Such a database holds business and consumer data pertaining to the organization and its clients. The type of information recorded in a client database includes:

·   Client or company names and their addresses

·   The products or services purchased

·   The value of their sales

·   The time when such a transaction occurred

·   Other general transaction data.

Cybersecurity and database management:

With the power and ability to maintain databases storing large volumes of information about employees, clients, and other stakeholders, companies also hold the responsibility of safeguarding it. Some of the things to keep in mind when managing such vast databases are:

Data Backup

·   Emergency measures and plan of action if data is lost.

·   Recovery plan and previous backup to ensure operations are not hampered as a result of data loss.

·   The frequency of backing up data, who is backing it up, and what are the checks to ensure that system updates take place smoothly.

·   The responsibilities that beleaguer a company should it lose business and consumer data.

·   To ensure that such an event does not occur, this data should be accessed only by experienced personnel in HR, managers of departments, and senior management.

Data security
Data security should be a priority for each business. Today, the use of a private cloud for storing data is the norm. Access permissions should be reserved for the right personnel. Most importantly, the best HR database software must have a security system in place that keeps data breaches at bay.

While data security is important, it is also imperative for a business to have database software that is easily usable. It should have a clear design that makes it easy to navigate the software. A good HR database must be able to track holidays, employee records, reduce absences, hold organizational charts, and record recruitment processes. It should also be able to provide self-service options so that employees can update information themselves.

Here's what Freshteam has to offer

Organized employee profiles

As more employees are added to a company, the organizational chart can become complex and difficult to understand. Employee visibility can grow and HR personnel can quickly browse employees based on their teams by using Freshteam’s employee database software.

employee directory in freshteam

Customizable personnel fields

HR personnel can filter and group employees based on certain qualities. There are more than 40 employee fields that you must simply drag and drop to add to the employee record. These fields include the name, gender, blood group, date of birth, and others. HR personnel can remove the fields that don't serve their purpose.


Manage all HR documents

All documents related to HR can be uploaded and viewed on the database. This is particularly of use because regulations around data protection are becoming more and more dynamic each day. Once a repository of HR documents is made on the database, employees and HR personnel can access offer letters, ID proofs, and relieving letters in one place.


Unique employee ID

As a company continues expanding, generating and creating a fresh sequence of IDs on the basis of an employee's team, designation and other details can become difficult. Freshteam offers ID sequencing so that HR personnel are spared the hassle of entering values into excel sheets.


Benefits of Freshteam's employee database

Ethically stored data: You can provide exclusive and secure access to employee data based on the needs of their roles and responsibilities. The ability to edit and make visible employee data is also in the hands of the organization’s HR employees. This ensures that data is not lost.

Effective monitoring: Freshteam's employee database software enables employees to learn about their colleagues. HR personnel can also assess employee behavior by looking at their absences.

Self-service: HR can shed their own workload by giving employees access to add and edit their own data such as time-off requests, date of birth and other communication information.