HR Software vs an Employee Database in Excel

Businesses have traditionally used a HR database in Excel to maintain employee records. As a business grows, however, such tasks become increasingly complex. And there comes a time when HR software may provide a more convenient solution.

HR software includes multiple time-saving features, making it a worthy tool for HR managers. In this blog post, we’ll explore why you should consider HR software over an employee database in Excel.

The Advantages of HR Software Over Excel

A HR database in Excel is outdated and fails to meet the needs of larger, more complex HR departments. When it comes to storing employee data, there’s an alternative you may wish to consider: HR software.

So what makes HR software a valuable tool for modern HR management? Here’s why businesses and HR teams are turning to HR software over an employee database in Excel.

Time Saving

HR software provides numerous time-saving features you won’t find with an employee database in Excel. With HR software’s automated processes, your HR staff won’t need to spend time entering data manually. Instead, they can focus on other tasks.

HR software also allows you to automate benefits administration and payroll processing, among other things. This not only saves you time, but it also reduces the risk of errors.

Then there are analytics and reporting tools that generate reports and analyse data. They allow you to more easily monitor employee performance, enabling you to identify areas where time is wasted.

Centralised Employee Database System

An employee database in Excel requires manual data entry. HR software, on the other hand, provides a centralised database that records and stores employee data.

HR software also makes it easy to update this data, such as time off requests, salary details, and more. This saves time and ensures you have the most accurate and up-to-date information.

Compliance Management

HR software provides multiple tools to help your company remain compliant. Legal reporting and compliance tools, and automated compliance monitoring help you stay in line with the most recent regulations so you don’t see costly penalties landing on your desk.

An essential part of compliance management is employee data protection. To protect employee data, HR software provides such security features as password protection and encryption.

HR Software is the Clear Choice Over a HR Database in Excel

From the screening and interview process to compliance and benefits, an employee lifecycle means storing vast amounts of data. Fortunately, an employee database system can run like clockwork with the right technology in place.

Whether you use a HR database in Excel or HR software, you need somewhere to store your employee data. For your HR workflow to run smoothly and easily. HR software appears to be the way to go. But it’s also important that you know which data to store in the first place.

Our free employee database template prompts you to enter all the essential data you need to collect, store, and update. Download our employee database system spreadsheet now to ensure you’re storing all the data you need to help your HR team save time and improve the overall performance of your workforce.