In any organization, you need to identify different types of people. Here, you can say that you need to group different types of people. There are basically three types of people you capture in HRMS system. They are as follows:
Employees: These include current employees and past employees. Past employees are those who were part of your enterprise earlier and are no longer active in the system. You can call them terminated or ex-employees.
Applicants: If you are using I-recruitment, applicants can be created.
External people: Contact is a special category of external type. Contacts are associated with an employee or an applicant. For example, there might be a need to record the name, address, and phone number of an emergency contact for each employee in your organization.
There might also be a need to keep information on dependents of an employee for medical insurance purposes or for some payments in payroll processing.