What is one best practice for keeping employee files?

To help you keep employee files, we asked HR managers and small business owners this question for their best tips. From storing files off-site to continually updating your data, there are several strategies that may help you maintain employee files in the future.

Here are five best practices for keeping employee files:

• Store Files Off-Site

• Implement an Online Document Management System

• Review Files Yearly

• Code Files

• Continually Update Your Data 

Store Files Off-Site

One best practice for keeping employee files is to store them in a secure, off-site location. By doing this, you can ensure that the files are protected from natural disasters, theft, and other risks.

Matthew Ramirez, Reword

Implement an Online Document Management System

The implementation of an online document management system has been one of the best practices we have implemented. We were mindful of the file structure that ensured compliance and ease of security-based roles and we got it right! Through this effort, we have reduced the time that our HR team had to take to track down paper files from a file cabinet, we freed up two entire offices of file cabinets, we are able to provide access to others through role-based security and the organization has become self-sufficient and not dependent on HR to provide what they need (in most cases). In addition, no matter when a situation arises, whether you are out of the office, out of town, etc. you are able to very easily access the information online and help solve a situation.

PATTY HICKOK, NANA Regional Corporation

Review Files Yearly

One of the best practices for keeping and maintaining employee files is to review these files systematically each year. Consistently, businesses will find that their filing gets more disorganized and cluttered as the year progresses. Set a time each year that a team or individual reviews each file and clears out unnecessary documents and reorganizes these files so that they can continue to be accessible and effective for your organization.

Joe Spector, Dutch

Code Files

Review the rules regarding personnel files that apply to your company. Organize the documents in personnel files by the length of time you have to maintain them to help with the annual disposal of files. Coding saves time reviewing what to keep and what to destroy when time has elapsed. Federal employment laws specify how long you must keep certain employee records, and it’s essential to adhere to those timelines to avoid penalties. Also, holding on to documents longer than necessary isn’t recommended as anyone can use it against you in a lawsuit. So, shred files coded for disposal to protect any personal information on the documents.

John Tian, Mobitrix

Continually Update Your Data 

Files should be updated with every change in any aspect of the employee’s employment, from their start date to a promotion or demotion. This includes salary changes and additional job responsibilities. It is imperative that files are kept up-to-date so managers can find information quickly when they need it most!

Adil Advani, Stream Digitally

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