As an employer, it is your responsibility to keep correct and up-to-date records of all employee data. Having access to the correct information can help you keep track of crucial performance and productivity measures.
A dependable employee file management system also assists you in meeting the recordkeeping obligations imposed by a variety of employment legislation.
Employee records were traditionally kept using a manual bookkeeping technique. This entailed storing all employee data on paper in personal files. Personal and professional information such as names, contact information, hiring records, payroll activity, medical paperwork, training program, and disciplinary notifications were all included in each file. And all personnel files were kept in alphabetical order in a filing cabinet. This system was time-consuming, inefficient, and unreliable.
The majority of employee data is now housed digitally. An employee database is used to keep a centralized record of all important information, making it much easier to manage and access information. Nonetheless, effective employee data management remains one of the most difficult aspects of HR administration. This is due to the fact that you must strike a balance between serving your business needs and ensuring regulatory compliance.
Implementing a complete employee record management system, often known as employee record management software, is one effective way to accomplish this.
Employee Record Management Software
Employee record management software is a digital employee file management system that makes storing, finding, and managing employee data simple.
Consider it an electronic filing program that assists you in recording and tracking all of your personal and professional employee data through seamless operations that help your organization run more efficiently. Instead of searching for an employee’s paper file in a large filing cabinet, you simply access their profile through an easy-to-use platform and have all of the data at your fingertips.
Contact information, employment papers, attendance and leave records, compensation information, medical history, cost management data, overall performance, and training requirements are typically included in each employee’s personal profile.
An efficient personnel data management system not only expedites administration but also assists you in protecting sensitive data and protecting your firm from risk. Furthermore, centralizing all data securely allows you to get the relevant data when you need it, empowering your leadership team and assisting your staff in working more efficiently and productively.
Employee Record Management Process
These are some critical steps to include in your employee file management procedure:
Organize your documents
Make a list of all the human resource documentation that you have gathered for each employee. This most likely includes recruiting and hiring documents, employee contracts, personal records, payroll and benefits information, medical and healthcare documents, as well as any safety and accident reports, Personnel files, including performance appraisals and disciplinary reports, as well as training files and resources.
Define your access requirements
Determine who will require access to this information. Every employee? Only your HR department? And how frequently will they require access to it?
Determine your requirements and objectives
Determine all of your documents’ expiration dates and triggers. For example, certain records must be kept for a specified amount of time after an employee leaves your organization, thus termination would be a trigger for those documents. Take into account the legal requirements for data storage.
Determine the security parameters
What level of security do various document kinds require? Medical records, for example, must be kept separate from employee files. Is it necessary to password-protect documents? Also, what data should be shredded after it is no longer useful?
Create a storage and archiving plan
Create your storage, access, workflow, and archiving strategies.
Implement a software system for personnel record management
As a result you will be able to automate document generation, access, and workflows.
Benefits of Employee Record Management System
One of the most significant advantages of employing an employee file management system is that it assists you in remaining compliant with state and federal legislation. This covers timekeeping and recordkeeping regulations. It also includes a number of federal rules that require you to keep employee records for a certain period of time following termination. For example, the Fair Labor Standards Act (FLSA) requires you to preserve payroll records for nonexempt employees for three years after they are terminated.
You need access to employee documents for regulatory audits and investigations, employee grievances, and lawsuits, in addition to federal responsibilities. For example, Employee record management system can assist you in producing entire HR records quickly if an employee files a discrimination or unfair dismissal suit.
Security and Privacy
Another benefit of employee record management software is that it safeguards your data and assists you in complying with security and privacy standards. This includes keeping employee medical information, disability information, Social Security numbers, and other personal information private.
Data flow Efficiency
Employee record management system helps you build more effective workflows by streamlining document access and sharing. This allows you to be more efficient and organized. It also ensures that the appropriate documents are available to the appropriate persons at all times.
Furthermore, employee record management software can be readily integrated with other existing systems and procedures, allowing you to keep track of all data in one location.