How to Prepare All Employee Database (Manual/HR Software)?

An Employee Database is one of the basic information providers for the employers. An organized database proves that the organization is updated, values the employees and keeps themselves updated about any kind of change/s made or needs to be made. 

Whether you are using a custom software or a basic data management software like spreadsheet or excel, Employee Database is the knowledge gatherer where you should look for your current resources. 

It also determines what to do in the next step with your human resources.

For example, if an employee is retiring next month, you need to have another resource ready at the position. Besides, the retirement will call for gratuity, provident and all other benefits from your company. 

As a result, the finance department can be called to take care of the scenario. 

And if the person is from production and operations and holds a good position there, potential candidates at that position should have similar work experience. Otherwise the production department may face problems.

As a result, the employee database has much more importance and gravity than you can think within a short moment.

Let us explore it more –

Employee Database Software List

Employee database can be created with simple software like Microsoft Excel. Again, you can use custom-made software to keep track of all your human resources in the company.

You can use simple software like Microsoft Excel to Create an Employee Database

Here is a list of some popular software those are being used to keep track of employee database-

Components of Employee Database

An HR database contains all types of information about each of the employees. Following is a list of components you should compile in an employee database:

Primary Data in Employee Database

Primary data mainly consists of employees personal information, salary, benefits, payroll details, presence and absence information, Training & Development, Results of Training & Development, probation period, permanency period, retirement time etc

Secondary Data in Employee Database

Secondary data should contain data related to work performance, relationship with other employees, relationship with clients, performance evaluation, appraisal, TA DA details, HR comments and any other information which are not usually accessed.

How to Prepare All Employee Database Manual HR Software In Excel

As it is the easiest to create an employee database in Microsoft Excel, we would like to show you how to prepare all employee database manualhr software in excel in a few steps:

Step – 1

Create a spreadsheet with following columns

  • Serial
  • Name
  • Position
  • Department
  • Joining Date
  • Experience
  • Basic Salary/Year
  • Allowances/Year
  • Total Salary/Year
  • Deduction (If Any)
  • Gross Salary

Step -2

Copy this spreadsheet and create another one. Here the columns will be a little different

  • Serial
  • Name
  • Position
  • Department
  • Joining Date
  • Experience
  • Basic Salary/Month
  • Allowances/Month
  • Total Salary/Month
  • Deduction (If Any)
  • Gross Salary
  • Taxation
  • Total Payable

Name the second spreadsheet – Payroll for the month of__. Then you can use it to measure the payable per month. Every month use a new payroll sheet.


Now you need to create another sheet. This will contain some information not usually accessed. The columns will be as following:

  1. Serial
  2. Name
  3. Position
  4. Joining Date
  5. Experience
  6. Basic
  7. Allowances
  8. Gross salary
  9. Training Name
  10. Results of Training
  11. Comment from HR/Department Head
  12. Need of Training (Yes/No)
  13. Employee Status (Probation/Permanent)
  14. Possible Appraisal Date
  15. Last Appraisal Date
  16. Retirement 
  17. TA Expenses
  18. DA Expense
  19. Advance taken
  20. Remarks


Right now, you need to collect data and information from the necessary departments. For this you will need sources. The sources are following:

  1. Employee Personal File – Created at the time of employment and should stay with the HR department all the time. 
  2. Department Heads – Some information must be taken from the department heads to make it as updated as necessary.
  3. Finance & Accounts Department – Information like advance taken or provident fund, gratuity etc. can be found at the finance and accounts department. You should collect them to finish the database.


After everything is put in the file with proper formulation, you should ask the employee about verification or any kind of feedback. If there are no issues, then you can proceed with the database as the final version.

Employee Database Sample

For your ease, we are attaching an employee database sample with this blog. Please follow the link to find the database.

Employee Database Template

Why are HRM Databases Important?

HRM Databases are important for many reasons-

  • You can find all employee data in a single file. Which is important for decision-making regarding any kind of step for the company’s future.
  • The company’s budget mostly depends on human resources and production-related costs. It is important to find HR data at a single place for this purpose.
  • The employee database is important to verify the data provided by the Finance and Accounts department regarding salary, disbursement, and any other employee-related issues.
  • Employee experience data is always available on the HRM database. It is important to measure the need for training and development for particular employees with the database from time to time with it.
  • Comments from the HR department and Department Heads should be available on the employee database. Which is very crucial for the company’s future. The higher the position, the more important.


How do you create an employee database?

You can create an employee database with different software. Like Microsoft Excel, Microsoft Access, and Bitrix24. Some of them have free user options and some of them are not. You can even create a database with Google Spreadsheets. It will always be available online.

How can databases be used in HR?

HR decisions always depend on the employee’s present position and condition in the organization. An employee can be an asset or a liability from time to time. To train and develop the employee along with finding out probable dates of retirement as well as appraisal, databases can be crucially important to the HR department.

What type of data does HR collect?

HR can collect employees’ joining date, training, development, experience, increment of salary, deduction, penalty, provident fund, other benefits, CPE, and many other data on the employees.

What is the best HR software?

You can create an employee database with the help of some basic office software like Microsoft Access or Microsoft Excel. Besides, you can create it using Google Sheets. But right now, Bitrix24, OneLogin, Gsuite, HRLocker, BambooHR and many other organization-based custom software are being used everywhere.


An employee database is a must if you want to run smooth HR operations within the organization. If the information are not organized then it is easy to get distracted in the pile of information before making a decision about any employee at any time.

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