What are the best practices for storing employee records?

1 Know the legal requirements

Depending on your industry, location, and size, you may have to follow different laws and regulations regarding the retention and disposal of employee records. For example, you may need to keep payroll records for at least three years, tax records for four years, and medical records for six years. You should consult with your legal counsel or HR experts to determine the specific requirements for your business and update them regularly.

3 Organize and label your records

Whether you use paper, digital, or hybrid records, you should organize and label them in a clear and consistent way that makes it easy to find, retrieve, and update them. You can use categories, subcategories, folders, files, and indexes to group your records by type, date, department, or employee. You should also use labels that are descriptive, accurate, and standardized, such as names, IDs, titles, or dates. You should avoid using vague or ambiguous labels, such as "miscellaneous", "old", or "important".

4 Secure and protect your records

Employee records contain sensitive and confidential information that should be protected from unauthorized access, disclosure, or alteration. You should implement appropriate security measures to safeguard your records from physical and digital threats, such as fire, flood, theft, hacking, or malware. For example, you can use locks, safes, cabinets, or shredders for paper records, and firewalls, antivirus software, encryption, or cloud storage for digital records. You should also limit the access to your records to only those who need it and monitor their usage and activity.

5 Review and update your records

Employee records are not static, but dynamic documents that reflect the changes and developments in your workforce. You should review and update your records regularly to ensure that they are accurate, complete, and current. You should also verify that your records comply with the latest laws and regulations, as well as your internal policies and procedures. You should establish a schedule and a system for reviewing and updating your records, such as monthly, quarterly, or annually, and assign roles and responsibilities for this task.

6 Dispose of your records properly

Employee records are not meant to be kept forever, but only for as long as they are needed or required. You should dispose of your records properly when they are no longer relevant, useful, or legal. You should follow the retention and disposal guidelines that apply to your business and your records, and ensure that you destroy your records in a secure and irreversible way. For example, you can use shredders, burners, or erasers for paper records, and deletion, formatting, or wiping for digital records. You should also document and report your disposal activities and outcomes.