September 5, 2019 ERP, Toronto, Canada

The Importance of Employee Data to a Business

Employee data’ is a self-explanatory term.

It is all the information regarding your employees, the gears and cogs of the machine that is your business. ‘Employee data’ inevitably includes information about their backgrounds, origins, specialties, affinities.

Data about an employee is the first thing a business records when it employs him/her and thus, it is critically important for a business to keep accurate records.

This data is also sensitive as it is basically a collection of personal information on an entire troop of individuals and thus must be given great attention.

This article will continue to go over in details how important accurate employee data is and what may be done to use it for the benefit of the business.


In the past, businesses had to keep huge piles of folders and files that had information on their employees but those are long gone now.

Due to the recent advances in CRM and HR software, businesses can keep all their employee data in a single repository and access the information whenever it is needed with a few clicks of the button.

However, the exact reasons for and the importance of keeping accurate data on employees have not changed.

The absolutely important reason is a compulsory one and a legal obligation as by law, you are required to keep sensitive information on your employees secure and accurate. Failure to do so may result in debilitating fines and even prosecution.

Aside from the legal obligation of keeping accurate employee records, the task done well can offer up great opportunities.

This is in spite of being an administrative burden as accurate employee data can make the HR department’s lives multiple degrees easier and less stressful.

Improper and inaccurate data actively hinders your efforts to monitor performance and productivity levels which in turn prevents you from making critical decisions regarding specific employees.

Without it, you may not be able to see which employee is dragging the business down or which employee is actively helping it grow.

A lack of clear knowledge on this is a loss-loss situation as not only are you deprived of the opportunity to remove the rusts, you are also unable to improve what works. Thus, everyone benefits from accurate and up-to-date employee records.

Coincidentally, accurate employee records remove potential avenues for disputes to arise between employer and employee, i.e. misunderstandings.

This ties in to the previous example of an employer left without sufficient data on employees that perform well. Such cases are understandably detrimental to the good health of a growing business.

If you keep your employees happy, you keep your business healthy and thus, precise employee data enables your HR team to keep accurate records of punctuality and attendance, holiday entitlements and wage agreements while also assuring you and your investors that you are doing everything you can do for the benefit of the business.


Employers need employees that are soundly capable of good productivity and getting the job done.

Indeed, employee performance is critical to to the overall success of the business as implied earlier.

Keeping accurate employee data allows you as an employer to determine strengths, weaknesses and gaps in the overall organization of the business.

The lessons sourced from all this data may then be used to the advantage of the business in its drive to grow and profit.

It is known that a critical component of employee performance is the ability to achieve goals.

As successful employees meet deadlines, work with diligence and heart and aid the company in completing its goals, customers feel that the company is listening to them and takes care of their needs and will thus form a brand loyalty.

Not having proper data on these employees blinds you to these facts and possibilities and is ultimately a loss.

Keeping accurate employee data also enables you to foster a positive work environment.

It is very important for you to foster a positive and energetic work environment by rewarding high-performing employees with incentives, bonus and recognition during meetings.

You will be able to properly identify such employees only if you have access to accurate and up to date data on them.

A positive work environment not only motivates a high-performing employee to perform higher, it also raises the overall morale among employees, inspiring those who lag behind to work ever harder.

This also attracts new talent to your business who note an office that is actively working with goals in mind.

You can measure the growth of each employee if you have accurate data on them.

Set new goals for them to achieve and complete based on the performance they have been showing in an attempt to keep the energy on the office alive.

High-performing employees are often motivated to exceed their efforts from what it was during the previous time and cultivating this strength and have it continue to grow will prove to be an invaluable asset to your company.

In conclusion, it is easy to see that the importance and benefits of keeping accurate data of the employees that work for you are paramount.

Lack of knowledge regarding your employees means uncertainty and anxiety, two things against which energy should be mobilized if a business is to survive and grow in today’s super-competitive markets.

Modern MRP tools such as Odoo help an employer greatly in this regard, making it much less of a drain on administrative resources.

Your company’s HR department should be outfitted with the best tools and knowledge in order to reliably and properly go about managing employee data.

Syncoria is a digital transformation company based in Canada and an officially recognized Odoo Ready partner.

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