Misconceptions about HR Recordkeeping
Reasons for HR departments to set policies and processes in place for effective and accurate recordkeeping are multi-faceted. Good recordkeeping practices are crucial for improving auditability, accessibility, transparency, and security while enhancing workflow processes, promoting productivity, and ensuring businesses are compliant with current legislation.
Yet, despite recordkeeping being vitally important, misinformation and legacy beliefs hinder many organizations from implementing the proper procedures. Discarding misconceptions is an essential step when it comes to evaluating and improving the records maintenance process.
Backed by resources from HR360 Inc, the premier online HR library, this article dispels 5 common myths around records management that can negatively impact the business.
#1: Records Management is Just Filing
The filing cabinet was a great invention for its time, however, running HR’s entire recordkeeping system manually where it’s perceived as a low priority admin task carried out weekly or whenever someone has time, is an archaic and highly risky approach. The process will become more unmanageable as the paper count increases. HR records need to be regularly and systematically organized and compliant with policies otherwise it can cost the company thousands in unrecoverable expenses.
#2: Records Management Refers to Offsite Storage
Records management starts the moment a digital or paper record is created and spans the life cycle of that record. Initiating a process after records are archived sets the scenario for pay now or pay later. Pay now by investing in time and systems to implement a robust recordkeeping process or pay later by wasting time and money to locate records while increasing the risk of litigation and penalties.
#3: It’s Safer to Hold Onto All Records Indefinitely
HR records can be assets and liabilities. Records are assets when maintained according to an efficient process and help safeguard the business, but records become a liability when the retention period has expired and it’s no longer legally sound to keep them. Sticking to the ideology of ‘keep everything just in case’ results in quickly amassing documents, increasing storage capacity, and exposing the company to potential legal issues.
Singapore’s Ministry of Manpower specifically details retention periods for HR records and cautions against keeping records beyond the retention dates, which increases the risk of liability.
#4: Records are More Secure in My Office
Having physical records stored in a room provides a false sense of security as it does not guarantee robust security against theft, unauthorized access, fire, or natural disasters. There are different security measures that must be implemented for paper and electronic records such as water-tight vaults with fire suppression and video monitoring, and digital encryption with off-premises (data centre or cloud) storage.
#5: Paperless Offices Don’t Need Records Management
Simply digitizing the company’s HR records doesn’t imply that a good records management strategy is in place. Electronic files are subject to the same regulations as paper-based records and should be stored within a comprehensive document management system (DMS) that offers a range of features such as security access, audit trails, and versioning control.
Getting Real with Record keeping
With KRIS software solutions, you can overcome these misconceptions and implement a highly effective record management process that will positively impact the way HR perceives the principles around business-critical data.
Our HR document management system encompasses all the features and functions required to give you the edge when it comes to record keeping.