4 Human Resource Data Storage Systems and Their Advantages and Drawbacks

Data Storage Systems - Complete Controller

One of the highly valuable departments in any business is the human resources department. Because the human resource department is the central area where employee records are kept, the department’s data storage must be well maintained. The records maintained need to be accurate and protected from potential threats since they can be vulnerable to data breaches depending on the system used for data storage.

Below are the essential records kept in human resources: Check out America's Best Bookkeepers

  • Personal information of the employee (name, date of birth, address, and other details)
  • History of their employment, if any (start date, previous job title, promotions, and other details)
  • Terms and Conditions (pay, holiday entitlement, hours of work)
  • Absence details (lateness, maternity, sickness)
  • Accident log (any work-related injury or incident)
  • Training information (external and internal)
  • Disciplinary actions (termination of employment) Check out America's Best Bookkeepers

Where should these vital employee records be stored?

Onsite Human Resource Database

Employee records can be stored with an onsite human resource database specifically designed to store and manage your human resource data. Though it can take time to set up and implement, the benefits of using an onsite database can be worth the work. This system can keep tracking accurate and accessible since it is maintained within the business.

Onsite human resource systems still have drawbacks. These systems can be expensive to obtain and maintain. They can also require staff to maintain the system.

Employee Records Stored Paper-Based

Perhaps the most basic storage for human resource data is to store their employee records in physical files organized in a cabinet. This method of storing employee records is archaic, but it is also the safest employee record storage option as there is no online data breached.

The drawback is that this system can be inefficient and cost time when employee records need to be accessed. This method can also take up a lot of space depending on how large the company is, requiring a lot of space to house all the records. With current technology, most companies do not use this way of storing data. Some companies still use it because they cannot afford an electronic system or are concerned with data leaks or breaches.

Employee Records Stored Electronically

The electronic storage system is different than the specifically designed onsite database storage. It is software designed to store human resource data but generally requires backup paper data and electronic storage. It will take up less space and be user-friendly, but it can also be vulnerable to data breaches or losses if the electronic system is accessed or goes down. Check out America's Best Bookkeepers

The drawback is that some software is difficult to understand how to use and the issues with data loss. It can also be vulnerable to data entry errors and does require a data entry clerk or more than one if the company is larger, so it does not save any time or staff needs to maintain.

Electronic Employee Records Through Cloud Storage

Electronic employee records using the cloud for storage area like the electronic system with a few differences. The information entered in the cloud storage can be accessed from anywhere using logins and passwords. This could be considered both an advantage and a drawback. It is advantageous because the work, including data entry, could be done from home or other offices. It is a drawback because it makes the data vulnerable to data breaches.

Because of the sensitive nature of the information stored by the human resources department, such as employee personal information and social security information, this vulnerability could make it worth space and expense to store data in a paper-based or onsite database not linked to the internet.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers