Where there are employees, there are personnel files…
Once your company’s headcount reaches 15 or more, specific government guidelines kick in and dictate what HR documents you must retain and for how long; a period that could range anywhere from one year to six years, or even an indefinite amount of time (if they’re military leave records).
Do you have 15 or more employees?
If you do, then you’ve entered the overwhelming realm of document management, and with any new endeavor, there are risks. Here are some practices to ensure that your company remains compliant with federal laws, so that you don’t end up in the pits.
It’s a slippery slope with physical HR files
Potential federal noncompliance aside, physical files are such a hassle. A lack of centralized document storage means that files are often stored across multiple locations or systems, making them difficult to locate, retrieve, and systemize.
And let’s say you do find a file, there’s a possibility it could be missing important paperwork, and that in turn may lead to potential legal issues.
Can you locate your employees’ hiring forms, tax records, and various copies of identification?
Are you sure those files are complete? Would you be able to efficiently retrieve them when asked?
Don’t be caught off guard! Set a solid foundation to avoid a landslide of issues later.
False security with physical HR files
Occasionally, third parties like auditors or legal counsel will request files from HR, which comes with its own set of risks as improper sharing may compromise employees’ sensitive information and violate privacy laws. Yikes.
HR departments are also notorious for tons of paperwork, leaving them prone to security breaches, misplacement, or accidental destruction. Reinforce compliancy with a digital process and avoid any potential surprises.
Monitoring lifecycles with physical HR files
Without an automated document management system in place, HR needs to keep track of retention periods and properly dispose of expired documents when necessary, increasing the possibility of noncompliance and eventual legal risks.
Not only are there federal regulations to abide by, but there are also state and industry retention periods as well, and these can vary based on the type of records. Avoid possible penalties by digitizing your HR documents and automate that retention and disposal process, so your worries can be left in the breeze.
So, are you ready for this journey?
You can be! Once you establish a secure and streamlined digital repository to manage HR personnel documents.
With DocuDriven’s expertise in scanning, indexing, and storage, you’ll be able to not only safeguard your HR documents, but manage their lifecycles as well, allowing your admin to find what they need efficiently and securely.
Interested in getting started?
Contact Us or scan the QR code to get in touch and we’ll see how we can help.
