Reasons why the organization needs to collect Human Resource (HR) or Learning and Development (L&D) data
Rolling a new Human Resource department is mostly concerned with data and information. Essentially, the key roles of the HR department are collection and storage of data, such that such it can be easily accessed when required. The HR department gathers information on employees, ranging from name, phone number, email addresses, benefits data, compensation information, and diversity information amongst many others. The Human Resource department is used by organizations to communicate, analyze and manage information that is critical for proper running of the organizations. The two main reasons why human resource personnel devote much of their time collecting information are for liability and regulatory purposes.
For liability purpose, data is maintained for use in situations of company defense in any legal suit. Therefore, the retention policies of any organization should be closely monitored. Furthermore, continuous communication with the managers and other stakeholders should be undertaken to ensure relevant updating and safeguarding of information. On the other hand, the government requires companies to maintain employee’s data, which they are required to submit to the Ministry of labor. It is mandatory for every company as such information helps the government to keep information, including employment and unemployment rates, minimum wages and even for taxation purposes.
Types of data collected within the organization and how each supports HR or L&D practices
There are many distinct types of data collected by the HR department. In essence, this falls into three broad categories; namely, company payroll related data, employee data and statutory data. Employee personal data includes information such as employee name, telephone number, addresses, and next of kin amongst others. This information helps the employer contact the employee in case of emergency or any other contractual changes that may arise. On the other hand, payroll related data consists of the basic pay to the employee and any other payment. It enables the HR to determine who is eligible for a pay rise after reviewing the pay history, as well as including any other payments to the basic salary. Finally, statutory data comprises information such as employee’s full names, employee’s employment number, basic salary and taxes deducted and remitted to the authorities. Such information is important as it makes employees remain compliant with the law thus enabling them to work peacefully and also develop in their careers without being in conflict with the statutory requirements.
Electronic method
Oracle human management information system
The oracle system helps HR department to maintain efficient HR records regardless of the size of the organization, geography or company segment. Oracle system has considerably helped companies around the globe to change their HR departments from the traditional administrative functions to ones that develop programs that improve work effectiveness, efficiency and finally productivity.
Benefits of using oracle system
- It boosts consistency of decisions relating to benefits issues across the organization.
- Oracle easily generates and modifies complex rules without customizing the application.
- It handles both diverse and complex benefit plans as triggered by life events.
Time and attendance Management software
The employees’ consistent attendance to work is one of the key ingredients to success at the workplace. The presence of the employees can be monitored by the supervisors through proper keeping of physical records, which ensure trouble identification and communication with the employees – this particular enhances employee’s wellbeing.
Advantages of attendance and time management
- This kind of communication allows the managers and supervisors to, easily, encourage the employees to attend their duties without lateness or absenteeism. It also shows the employees that their efforts are appreciated and worthy in the running of the organization.
- It ensures safety and health of the workers, therefore, reducing cases of sickness and absenteeism.
Manual method
Manual method used by companies to collect and store employee’s data includes maintenance of traditional physical files and also employees signing in and out after work.
Benefits
- No special training is required to maintain employee’s information
- Easy to trace employee data since individual file is maintained for every employee
- Cheap to implement
Disadvantages
- Time consuming when tracing employee information
- Tedious to maintain individual file for every employee especially in organizations with many employees
- Employee information is susceptible to loss as it becomes difficult to maintain a back up.
The importance of legislation in relation to recording, storing and accessing HR data
The data protection Act of 1998 enshrined in common laws gives a framework within which rights and duties are designed to safeguard personal data. Further, this legislation balances the need for organizations to collect and use the employees’ personal data for business purpose only; and not for other non-business reasons, which would instead go against employees’ rights. The Data Protection Act contains some restrictions subject to access of information. For instance, it has restrictions regarding the disclosure of personal data for more than one individual. In addition, the Act requires fair processing of individual information. For both written and oral information collected from the employees, the individuals concerned should possess the right to choose whether or not their personal data should be disclosed to any other person.
The other Act that gives individuals right is Freedom of Information (FOI) Act 2000. This Act allows people to access employee information held by public bodies or any other body providing services on behalf. This Act bars people’s right to access information unless and until the concerned bodies is formed and registered. However, once the body concerned is put in place, the individual can access both the current information and also those recorded before passing the Act.