Why Keeping Good Employee Records is Vital

It really does not matter what type of company you run, understanding its strengths and weaknesses is vital to success. Gathering relevant data about your business and interrogating it on a regular basis is by far the best way to stay informed about what is really going on in your firm.

Accessing employee records

This applies to all areas of your business, not just your finances. It is not enough to just pull off a profit and loss report every month, and review it. If you want your company to run as efficiently as possible, you need to analysis every aspect of your business, and do so on a regular basis.

That includes how your employees are performing. Numerous studies have shown that those firms who effectively keep track of their staff performance are the ones that run more efficiently, and, therefore, make bigger profits.

Work out staff costs

Any successful business understands its costs and overheads. If you do not keep accurate employee records, it simply is not possible to know what your staffing costs really are.

This makes it impossible for you to truly understand the cost of producing the products you sell or the services you deliver. As a result, you cannot work out which areas of your business make you money and which lose you money.

Identify absenteeism issues

Keeping accurate and up to date attendance records is vital if you want to keep absenteeism under control. The true cost of not keeping staff absence under control is high, so staying on top of this issue is important. You can read more about the costs of not doing so, here.

Identify skill gaps

Good staff data will also help you to identify skill gaps and address them. Keeping a record of who has which qualifications will help you to be able to promote from within. Doing this provides stability, and saves you money on recruitment costs. It also helps you to retain your staff, and create a happier, more productive, work environment.

HR software

The easiest way to keep good employee records

In the past, keeping details about each employee would have been quite time consuming. Usually, it meant that your HR department had to set up multiple databases, and input information into each one. Often, key information had to be entered multiple times, across several spreadsheets. This was time consuming and understandably, mistakes were made, which made hard to maintain accurate data about each employee.

These days it is far easier. All you need to do is to buy a human resources software package from somewhere like CascadeHR. They sell module style software that allows you to decide exactly what information is kept about each worker. The data in each module links together using key fields like the employee name and number, so you no longer have to enter data multiple times. This allows you to draw out information from multiple modules, manipulate it as you want and produce the in-depth reports you need to learn more about how your employees are performing.


As you can see, there are many benefits associated with keeping good employee records. Using modern HR software makes it easy for you to do so, which is great news for business owners.