The Importance Of Centralising HR Data

Posted by Neil Curry on January 4, 2016

The Importance Of Centralising HR Data

In today’s business environment where flexible working arrangements are becoming more popular and the need for employees to share information quickly and more easily is essential, the argument for a centralised HR data repository becomes stronger and stronger.

Due to the global nature of business, many organisations now need to work across multiple time zones and employees expect information at their fingertips. This has been further exacerbated by the prominence of mobile technology and social media platforms.

As a result, having a system that can be set up with varying access rights to enable employees to access information wherever and whenever has never been more important. To get the most out of a system like this the primary focus should fall on the centralisation and accessibility of all data.

However, if not implemented properly, such a system can actually hinder, rather than help a business. Paper based records of all employees, sitting in a locked filing cabinet inside a locked office is only good for the key holder – an extreme example I know, but an example of a key problem with centralised data. Proper access is essential – if employees aren’t able to update personal information, managers can’t enter a team member’s absence and directors can’t run an attrition report, the data itself is largely meaningless.

Ensuring the correct variations of access will free up peoples’ time and lower operating costs. Tasks that are duplicated across functions can be addressed and a lot of back and forth, particularly with new starters can be reduced. For example, new hires can input their information directly which in turn, then interlinks with other relevant information across all systems.

It’s also important not to underestimate the positive impact technology like this will have on the employee experience. A streamlined, efficient solution will reduce stress and time previously wasted on trying to source all relevant information held in multiple locations. Additionally, with the data in one place, reporting capabilities improve which enables managers to review the findings and make quicker, more informed business decisions.

In summary, the centralisation of HR data, with the right system, is invaluable if done properly and can benefit those who need access to the information held. 


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