The benefits of using employee data management software are clear. It makes a huge difference in the way you manage your employees and provides you with a comprehensive overview of their performance. With this tool at your disposal, you can easily track time spent on each project or task, see who’s doing what (and when), and keep everyone up-to-date on what needs to be done next—no more guesswork or confusion!
In this guide, we review the aspects of Employee Data Management Software, employee data management roles and responsibilities, Which software is used for storing employees details, and How do you maintain an employee database?
Employee Data Management Software
Let’s face it: managing employee information has never been easy. From hiring to payroll, training, and retention, there are a lot of moving parts that must be taken care of. Employee data management software (EDMS) is a computer system that allows companies to easily manage large amounts of employee information in one place rather than manually handling each aspect separately. Here are some reasons why your business should consider investing in an EDMS:
Employee data management software (EDMS) is a computer system that manages the storage, maintenance and access of employee data.
Employee data management software (EDMS) is a computer system that manages the storage, maintenance and access of employee data. EDMS allows companies to easily manage large amounts of employee information in one place. This includes hiring, time tracking, retention, training and onboarding processes for all employees.
Main uses of EDMS are hiring, time tracking for payroll, retention, training and onboarding.
Employee data management software (EDMS) is used for many purposes. The main uses of EDMS are hiring, time tracking for payroll, retention, training and onboarding.
Employee data management software allows companies to easily manage large amounts of employee information in one place.
Employee data management software allows companies to easily manage large amounts of employee information in one place. This software is used by HR professionals, managers and employees alike to track employee data and keep it secure. EDMS can be used to manage employee records, payroll, benefits and onboarding.
employee data management roles and responsibilities
What Is Employee Data Management?
Employee data management is the practice of collecting, organizing, and retaining employee data. As an HR professional, you know the amount of data you collect from employees is immense. From addresses and employment details to demographic data and medical information, sometimes the amount of data you collect can be overwhelming!
To keep from drowning in this sea of documents, you need a game plan. That’s what employee data management is all about: having a plan for how you collect data from employees, how you organize the data you’ve collected, and how you retain that data to ensure compliance with legal regulations.
Data management usually includes some combination of physical and electronic file management. While physical document storage can be simpler in some ways, the trend is to move to digital storage, which has a number of benefits. Digital data management is almost always more secure, more efficient, more sustainable, and easier to access. That said, physical files are still very common, and the transition to digital can be time-consuming.
Why It’s Important to Manage Employee Data Correctly
Correctly managing your employee data may not be the most exciting part of HR, but it is important. Here are some of the reasons why.
Types of Data Stored in an Employee Data Management System
The kinds of data stored in an employee data management system vary, but most can be simplified into a few categories. Knowing which data falls in which category will show you how to organize it in a compliant and efficient way. Always, always, always pay attention to how you store any sensitive information.
Think of personnel information as the basic employee file. It usually encompasses any non-sensitive information about an employee and their employment. Personnel information can include a resume, background check, promotion record, disciplinary action, termination documents, etc. This is the kind of information that employees and managers should be able to view when requested.
Payroll information is usually sensitive payment information. As such, the sharing of this information should be more limited. Payroll information can include W-4s, W-2s, bank account information, government or lender requests for verification of employment, etc.
Medical information is usually easy to tell apart and should be separate from other employee information. The number of people who need access to an employee’s medical information is very small — rarely anyone other than HR and the employee. Medical employee data can include FMLA, ADA, parental leave, drug tests, etc.
While demographic information might not always get its own file, this kind of information should be separate at least in your mind. By demographic information, we mean anything related to a person’s gender, age, race, ethnicity, veteran status, disability status, or any other protected class. This information should only be collected as needed. When it is collected, the number of people who should have access to it should remain small. If you are a government-contracted employer, you may have specific requirements to follow here.
Government forms, such as the I-9, FMLA, ADA, or Workers’ Compensation, should always be given special treatment. Usually, a government form has specific requirements for how the document should be collected, stored, and retained. Make sure you understand the regulations associated with each of these kinds of documents to avoid any fines or penalties.
How to Get Started with Employee Data Management
The best way to get started with employee data management is to do a sort of data audit — think of the first time you collect employee data and walk through each time data is collected. You’ll want to improve your process to make things as easy as possible for you and for the employees.
Step 1: Note Your Current Process
The first place to start is to write down each way you currently collect and store data. Write down whether the data is stored physically or digitally, as well as which type of data is stored. The easiest way to do this is to start with the first time you collect employee data (recruiting) and work through the employee lifecycle.
Step 2: Decide Which Data Should Go Where
Once you’ve taken note of which data you have, see if any adjustments need to be made. Do you have one kind of data collected across multiple systems? Do you have sensitive data in the same places as non-sensitive data? Do you have any data that is difficult to access?
Step 3: Improve How You Collect Data
Two pointers here. First, when it comes to managing data, the rule is to correct any problems at the source. So, if you find any incorrect or missing data, make sure to adjust how you collect the data to prevent the errors from happening again. Second, automation is always best for administrative tasks. Use all the tech tools you have to make the collection and storage of data in as few steps as possible for you and the employee.
Step 4: Conduct Regular Audits
For government documents especially, you’ll want to audit your employee data at least once a year. One common practice is to rotate internal (you do it yourself) and external (you pay someone to do it) audits every year. The longer you put off auditing your data, the more work will pile up for your next audit!
Employee Data Management Tools
By now, you know how important it is to store employee data securely. In addition to making sure data is safe, you’ll also want to organize that data so that you know where to look if you ever need information. The following tools can help you manage data efficiently and keep everything in order.
Your Human Resources Information System (HRIS) should be the main tool you use to collect and store employee data. In a perfect world, all employee information would be collected and stored in this one system, but that is rarely the case. You might toggle between two or more softwares, or even between softwares and physical files. Whenever possible, centralizing is best. When you can’t centralize data, do your best to keep the information in each software clean and easy to access.
Document Storage Software
If you don’t have an HRIS, or if your HRIS doesn’t have all the right capabilities, you might want to explore a document storage software. These softwares help you store data securely and sometimes may even have other helpful features, such as scheduled deletion.