The importance of MDM for the HR Department

Recently I wrote an article about Master Data and HR. This article covered only the headlines about the importance of HR Master Data. However it is time to dig a little bit deeper into this topic. The fact that correct data enhances the power of the HR department to do more with people is commonly accepted and logical. But what is MDM for the HR Department?

MDM for the HR Department

I do not know if you are familiar with the saying of many people when you start do a research for a new house. Many people often say:

What is really important when you start looking? well it contains three factors: Location, Location and Location. Because all the other factors you can change but you cannot change the location of the house.

About MDM for HR you could say it is about people, people and people. But what data do we talk about and what data does not belong in the hands of the master data team? In this case privacy is also a big issue because you are handling data of people who are not assets but people with real lives and information that can affect their lives drastically.

Components of MDM for the HR Department

In my opinion these are the components of HR master data that usually common if we talk about a global economy and global companies.

  • Roles
  • Time (Working Hours)
  • Departments / Organizations
  • Compensations
  • Basic Pay
  • Start Date – End Date

Beware of the fact that every country has it own regulations around employee registration. For example in The Netherlands is pension always a interesting item to register. Italy has special district taxes that should be included on the employee registration.

MDM for HR is delicate case and should be handled with precaution. Your employees are important to your company and one thing that makes employees really unhappy is faulty data in their wages/salary. Master data is a source for these wages and therefore important to maintain correctly.