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1.1 Need for collecting and recording HR data
For business organisations, it is imperative to collect HR data as analysing HR data can help in providing insights about the trends in HR for a particular time. According to Calvard and Jeske (2018), it is legally required for businesses to collect and store data on the human resources of the organisation. Collecting and storing HR data is required by the Government of the country to keep track of organisations that are maintaining the legal standards. Furthermore, Somjai (2017) argued that while recruiting new employees, organisations sign contracts and agreements with them. These contracts decide the payment to the employees, the compensations they get, their tenure in the company and the type of employment.
To ensure that the contractual arrangements and agreements are recorded efficiently, organisations should record and collect HR data. It is also imperative to consider that for improved decision making related to HR, storing and collecting HR data is highly required.
1.2 Types of HR data and support to HR practice
For a business organization, it is imperative to collect certain kinds of data related to HR activities. As per Doeze Jager‐van Vliet et al. (2019), data on weekly activities can be highly impactful for managing the employees of an organisation. Data on weekly activities can be collected from the line managers on a weekly basis. The feedback provided to the employees every week can be considered in this. According to Kumar (2019), performance management of the employees helps in improving Organisational effectiveness. By analysing the weekly performance data, HR managers can create a definite plan for performance management. Furthermore, another kind of HR data is data about compensation and benefits to the employees.
Compensation and benefits related data provide insights about the salaries as well as benefits that employees are receiving for the work they are doing (Kang and Lee, 2021). These kinds of data are usually collected through employee surveys. Data related to compensation and benefits related to the HR practices of employee and labour relations. In creating effective employee relations, the compensations and benefits play a major role as effective benefits satisfy employees. Hence, favourable employee relations are experienced.
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