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How to design employee ID codes

An employee code looks trivial until the company opens a second unit, merges two payroll files or buys a biometric machine that accepts only numbers. Then a badly planned format means renumbering hundreds of people. This guide shows how to design a code that lasts: what to put in it, what to keep out, how to handle group companies, rehires and trainees, and a few formats you can copy.

What a good employee code does

A good code identifies one person for as long as they work with you and is never given to anyone else. It is short enough to type on a punch terminal, sorts correctly in a spreadsheet, and survives transfers, promotions and department changes without changing. It also works in every system that needs it: payroll, the attendance machine, ID cards, email IDs and reports sent to auditors.

What to include and what to leave out

The safest format is a short, fixed prefix followed by a running number of fixed width. Everything that can change about a person should live in the employee record, not in the code. Codes that carry meaning go wrong the first time that meaning changes.

Formats you can copy

Take Mehta Engineering with plants at Rajkot and Morbi and 640 employees. It uses ME followed by five digits, so ME00001 to ME99999. The plant is recorded as the employee's location, not in the code, so when an operator moves from Morbi to Rajkot the code stays ME00412. Its biometric machines accept only numbers, so the device ID is the numeric part, 412, which is unique across both plants. A group with a second company might use a different prefix, such as MF, with its own running series.

Rules for exits, rehires and transfers

Write three rules down before you need them. First, a code is never reused, even years after the person leaves, because old payroll and attendance records still point to it. Second, decide what a rehire gets. Many companies issue a new code and note the old one on the record, so each stint's history stays separate. Third, a transfer within the same company keeps the code, while a move to another group company usually means a new code in that company's series.

Step by step

  1. List every place the code will be used. Include payroll, the attendance machine, ID cards, email IDs, access cards and reports. Each place may limit length or characters.
  2. Check your biometric device's ID format. Find out whether your attendance machines accept letters or only numbers, and the maximum length, before fixing the format.
  3. Choose the prefix. Use a short company or entity prefix if there is more than one company in the group. A single company can use a prefix for readability.
  4. Fix the width of the running number. Allow enough digits for ten years of hiring, including people who will leave, since codes are never reused.
  5. Write the rules for exits, rehires and transfers. Record that codes are never reused, what a rehire receives, and what happens on a move between group companies.
  6. Set the format before importing. In ZeniaHR, the first step of the HRMS Setup wizard covers company basics and the employee code format, so set it before you import employees.
  7. Convert existing codes once. If you are changing formats, build a mapping sheet from old codes to new ones, update every system in one go, and keep the sheet for audits.

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Frequently asked questions

What is an employee code?

An employee code, also called an employee ID, is a unique identifier given to each employee and used across payroll, attendance, ID cards and HR records. It stays the same for the whole period of employment and is not reused for anyone else, so every record can be traced back to one person.

Should employee codes include the department or location?

No. Departments and locations change with transfers and restructuring, and a code that carries them becomes wrong or has to be changed. Keep the code as a prefix plus a running number, and record the department and location in the employee record, where they can be updated freely.

Can an employee code be reused after someone leaves?

It should not be. Payroll, attendance, PF and document records of the former employee still refer to the old code, and reusing it mixes two people's histories. Retire the code permanently and give every new joiner the next number in the series.

What employee code should a rehired employee get?

Decide it in your policy before it happens. Many companies give a rehire a new code and note the old one on the record, which keeps the earlier stint's pay and attendance history separate. Others restore the old code. Either way, apply the same rule to every rehire.