How to get out of paperwork with the personnel database: Benefits and steps to create it

By Jérémy Hasenfratz

Published: 9 May 2025

Who has ever enjoyed spending hours researching in an archive? Apparently nobody.

The HR database is a digital system, usually in the form of a cloud, in which every piece of HR-relevant information is stored centrally and which makes life easier not only for HR managers, but also for employees.

A personnel database has many advantages, which is why we will show you how to implement it in your company. Let's go!

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What is a personnel database?

HR databases are used by HR managers to store personal information about their employees. It is often part of a personnel information system or HR software. As it can fulfil a range of tasks, a personnel database covers many areas, e.g. applicant management, holiday administration or payroll accounting.

The data set can include everything from personnel files to information about managers, holidays and absences, rosters or time sheets, timesheets and expenses, as well as any other information that can help the HR department with personnel administration.

It is important to know that the creation and management of a personnel database is subject to co-determination and data protection.

Why use an employee database?

Using a single employee database makes it easier for the HR department to manage personnel data, as the data is consolidated using a system such as MySQL. A comprehensive database also makes the data easier for management to use to create HR dashboards or reports.

By granting access rights, users can have direct access to their relevant and up-to-date data. This means that employees can access important forms and get answers to basic questions without having to involve the HR department.

A single, integrated HR database offers many other benefits, including:

Standardised process and consistent updates

An integrated system brings all employee data together in one platform, so you don't have to use multiple platforms to make payroll or other changes. Every time new data is added or updated, it flows directly and automatically into the database.

Increased data security through access rights

If you store your employees' data in one database rather than in several different systems, you have more control over who has access to it. You have full autonomy over which user groups can view or change information.

Greater transparency

Employees who have access to the database can view their payroll and benefits without having to visit HR every time. Managers can also access their team's performance and training history and generate reports to support performance reviews and appraisals.

Less paperwork

Paperwork becomes a problem of the past. An integrated HR database in a cloud-based software reduces all the paperwork and creates a digital trail of every employee's information. Dashboards and customisable reports show you what updates have been made and when, helping you keep track without relying on paper files and storage systems.

Increased productivity

Duplicate data entry wastes time and increases the chance of errors. A single employee database helps you to reduce the time spent on data maintenance as you work with a single system rather than multiple systems. This means you can use the time saved for other personnel management activities.

How is an employee database created? 7 steps

1 - What do you want to achieve with a personnel database?

In order to implement the right tool, you should first think about what you want to achieve with a personnel database. Be it to:

improve the relevance of reports?
automate HR processes?
Integrate payroll with processes for recruitment, benefits and other areas?
Track HR KPIs?
Give managers and employees easier access to data to drive engagement and performance?

2 - Identify the precise data needs

Once you have established the macro objectives of your employee database and what you want to achieve with it, you can determine the elements you want to include in the database. A good starting point is the life cycle of an employee. You should include the activities that occur in each of the following phases of an employee's lifecycle:

Recruitment and onboarding
Performance management
Training and development
Retention and engagement
Offboarding

3 - Involve key stakeholders

Although the HR department is often responsible for managing employee data, it is advisable to also involve stakeholders who need to approve new technical investments, e.g. senior management and the IT department. You should also involve frequent users of the data, e.g. the payroll manager or other employees in the finance department.

4 - Evaluate different solutions

To achieve your goals, you should look for a standardised solution for HR data that has the following features:

Cloud-based, so your employees have access 24/7 from anywhere.
Dedicated support that assists you during implementation and is available day-to-day after implementation
Modules to support the entire employee lifecycle.
Navigable reports and dashboards to support better analyses and decision making.

5 - Collation of existing data

Regardless of its format, you need to collate your existing employee data and have it ready for inclusion in your database. For example, you'll need to have your pay and holiday policies to hand so that they can be integrated into your new system.

6 - Employee training

Take the time to train staff and provide resources so they know where to access payslips, absence information and other data.

7 - Expand employee data

Storing and updating data will give you new opportunities in its use and reporting. For example, you can create new custom reports to help you make decisions and understand the impact of your various HR programmes and activities.