What Is the Purpose of Employee Database Software?

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Employee database software allows a company's human resources department to simplify and automate tasks such as enrolling employees in benefits plans, providing access to payment details and connecting managers with various custom employee management systems. Some employee database software also allows the business to store employee records, such as medical forms or disciplinary actions.

Many companies feature a human resources department that manages aspects of the business that relate directly to employees, such as benefits, pay rates, promotions, dismissals and company policies. Most employee database programs allow these departments to improve work flow by collecting the various activities and tasks into a single interface through which an agent can efficiently implement actions. At a basic level, the software includes a record of each employee in the company, including a name, address, phone number and position, which allows the human resources agent to create records and actions for each person.

It is common for employee database software to include integration with the company's benefits packages, allowing for actions such as enrolling an employee in a health care plan, tracking paid time off or allocating access to company facilities. Some software also allows the human resources department to create an employee self-service system for managing these details, which may also feature access to payment histories or retirement plans. Another common feature is a digital storage system for tracking external forms that relate to each employee.