Grey metal file cabinets filled with paper-based employee records no more look fascinating in offices. We’re living in a digital world where technology is transforming operations and driving a revolution. Companies nowadays are finding new and innovative ways to effectively manage their employee records and make smart decisions. 

Like any other department, HR deals with excessive document management. HR managers are responsible for the collection of staff records, storing them securely, and maintaining employee records of employment for future use. However, managing these records with traditional pen and paper-based methods is very challenging. Unless you digitize your operations, mountains of records could result in a mess of administrative liabilities resulting in declined performance. 

Let’s discuss some of the most feasible and reliable ways to manage your team’s records of employment and stay updated with the latest trends. 

Why Employee Records Management is Essential? 

Managing employee records of employment is a basic legal requirement of any organization. Companies maintain these records to comply with labor laws, tax regulations, and data protection laws. Fulfilling these obligations means a company can provide necessary documentation whenever needed. 

Similarly, employee records contain valuable information about personnel’s employment history, training records, skills and expertise, and personal details. HR managers and team leads can use this information to evaluate performance, assign tasks, and make data-driven decisions. 

Other benefits of managing employee records include accurate payroll and benefits administration and success planning and talent management. Performance appraisals and feedback forms help employers track progress and identity areas for improvement. Eventually, they can assess their employees’ training and development needs and analyze their growth for better results. 

Problems with Manual Employee Records Management 

Managing employee records manually presents various challenges and problems for organizations, particularly those with large workforces. These methods are prone to human error and involve manual data entry, sorting, and retrieval of physical documents. There are high risks of errors, such as typos, misfiled documents, or lost records. 

Moreover, incomplete employee records can lead to problems with compliance, and payroll discrepancies, and hinder effective decision-making. Likewise, manual methods are time-consuming because searching for specific information within a large volume of physical records can be tedious and time-consuming. 

Other limitations of manual processes are lack of convenience and accessibility and increased administrative burden. In the absence of digital solutions, sharing and updating information becomes challenging, especially for organizations with multiple locations or remote work arrangements. This can result in delays in accessing important information and difficulties in collaboration among HR professionals and other stakeholders. 

The Solution: Best Records Management Methods 

Given below are the most reliable ways HR professionals can manage the records of employment of their staff and stay ahead of their competitors.

1. Use Cloud-based HR Software

Digitization is the ultimate solution to address challenges associated with manual records management. Modern cloud-based HR software is equipped with powerful features that streamline processes. They provide secure and centralized storage to manage employee records of employment and eliminate the need for paper files. This way, the risk of physical damage or tempering is reduced significantly by digital systems. 

Additionally, cloud-based systems make it easy for managers to access employee records anytime, anywhere. There is no restriction on time and place to update information and use data for decision-making. Features like data encryption, backups, and access control ensure data security and protect confidential information from cybersecurity threats.

2. Develop Employee Records Management Plan

Merely digitizing your employee records management cannot deliver your desired results until you take a structured approach to organizing and managing employees’ data. For this purpose, you need to develop a plan establishing clear guidelines on what information will be collected and who will get access to these records. 

Moreover, ensure that your proposed plan has consistency and complies with legal requirements. This will not only improve organizational efficiency but also support overall record-keeping practices.  

As a result, long-term preservation of critical information can result in sustainability and business growth.

3. Follow Record Retention Policy

Workforce size keeps changing with time as a business grows. New employees keep replacing the older ones and the process continues for centuries depending on the sustainability of an organization.  

In this situation, companies need a clear retention policy concerning their employees’ records of employment. The policy defines which records about current and ex-employees are retained for the appropriate period.  

Besides the policy guides HR managers in defining the retention periods to meet legal requirements. Hence, by adhering to a record retention policy, companies can significantly reduce their data storage costs, mitigate compliance risks, and efficiently manage the lifecycle of employee records.  

Moreover, the process offers clarity on when records can be purged or archived and ensures that only relevant and necessary information is retained.

4. Set Guidelines on the Disposal of Records

Disposing of unnecessary and irrelevant records of employment is a common practice in every organization. However, this requires proper guidelines to protect sensitive information and maintain compliance with privacy regulations. 

It is, therefore, essential for companies to set clear rules and guidelines for the secure disposal of records that are no more relevant or important. For companies using cloud-based HR software, employing secure data deletion methods for secure erasure is crucial to mitigate cybersecurity risks.  

Proper disposal of employee records minimizes the risk of data breaches, identity theft, and legal liabilities associated with mishandling confidential information.

5. Train Your HR Staff

Lastly, training your HR staff on effective management of records of employment is crucial to ensure consistent practices and adherence to policies and procedures. For this purpose, employers should organize training workshops covering topics such as data privacy, legal requirements, and record-keeping best practices.  

Besides, HR experts should teach employees about the proper use of record management systems. Employees working in the HR department should know the importance of accurate and complete record-keeping.  

As a result, this step can significantly reduce the likelihood of errors, non-compliance, or mishandling of sensitive information. 

Final Thoughts 

The time has come to replace vintage paper-based employee record management methods with cloud-based software for improved operational efficiency. These fully automated solutions offer a secure and centralized platform to add, update, record, and share employment of records from a single dashboard. 

Besides, advanced collaborative capabilities with easy accessibility make it easy for HR managers to access their desired information from any place. However, make sure you have a proper records management plan to stay organized and adopt record-keeping practices. 

Lastly, implement record retention and disposal policies to streamline record lifecycle management and train your HR staff to enhance accuracy, compliance, and data security.