14 of January, 2025

File management is one of the most heaviest tasks within every organization’s human resources (HR) department. However, managing the enormous piles of paperwork and endless files is as essential to the progress of the business as managing the people effectively. Keep reading and find out how modern companies manage their documents nowadays.

What is file management in HR?

In HR, document management refers to all the processes involved in managing employee documents. For example, it includes the storage of records, regulating access to documents and employee information, and the removal and disposal of outdated files.

How to manage employee records

Proper management of employee records is vital. Therefore, do the following while managing these documents;

Store these records in a secure location and, by all means, keep confidentiality in mind.
Give access to only legitimate bodies covered by the law or necessary entities. Keep records like pre-employment documents, employment documents, and employment separation in a personal file.
Keep other documents like credit information, medical records, immigration information, and complaint and investigation documents in a separate folder other than the personal file.

A less stressful way to manage these records is to document these records digitally using a dedicated file management software.

How long can I keep employee records?

There is always a concern about how long employee records can and should be kept within the HR department. As a result, in 2018, the General Data Protection Regulation (GDPR) was enacted and hinted at how long employee records should be kept.

For instance, it is vital to keep the records of unsuccessful job seekers for at least 6 months after submitting an application to your firm. Similarly, keep details about past employees’ working period for two years, and payroll and paternity or maternity leave details for three years. Also, keep personal files, training records, and P45/P60 forms for 6 years in your document management system.

Keeping this information is essential. For instance, if an individual files a claim against you, the records prove that you adhere to employment laws. In some cases, an employee might demand a copy of the data you have concerning them; therefore, it is vital to provide it within 30 days. The GDPR gives an employee the right to be told information you have about them, how you use it, how confidential they are, and how the records can aid their development and training at work.

Benefits of file management in an HR department

HR document management systems have the following benefits, among many more:

It increases HR productivity.
Allows for secured file management and reduces loss of document
Avails for centralized, easy access and streamlining of HR documents
Make it possible to get relevant data and run reports and metrics easily

How to set up a file management system

Itemize all necessary documents

Here, you have to itemize the HR department’s documents for HR functions. This includes most documents mentioned in the list of documents in an employee file by the HR department, such as hiring records, employment eligibility verification or form 1 – 9, payroll, and tax records.

Define who gains access to the documents

You need to clarify who has access to all HR documents you collect; is it the HR staff only? Supervisors? Or all employees? Also, define how eligible individuals can gain access, when, and how often they should have access.

Set Retention, Trigger, and Expiration Requirements

From all the documents needed by the HR department, check out the ones you need to keep under the law and how long you must keep them. Further, you need to check the risk levels to keep these documents for a more extended period.

After this, you can set a trigger for all document types. For instance, a trigger (an event) such as job termination starts counting to the expiration date when an employee leaves. The triggers for these documents set how long to keep, archive, or dispose of a record.

Check the document security level.

Ensure documents are protected adequately, especially information protected by law. Also, dispose of information properly.

Create a storage and archiving plan

Since you have sorted the types of documents you are collecting, how secured they should be, and who should have access, create storage and archiving plan. It paves the way for adequate and proper access while enhancing the organization’s workflow.

There could be physical or digital storage or both. However, ensure the document will be safe for any storage type you use. You can enhance the file management by grouping the document types according to the member of staff that should have access to them, such as the HRs, managers, or all staff in the company.

Use a document management software.

Managing documents might be challenging if you do payroll. However, using an HR document management software will reduce time wastage and enhance your productivity.

Obviously, there are many document management systems out, but trying out the Sesame HR file management software will benefit your organization. Some of its features include:

Prompt and automatic notification of any triggered event
Full compliance and adequate security and encryption are in place.
The system is robust for almost any scale of operation
Easy access to documents
Budget-friendly price plans

Most common collected HR documents

Documents collected by HR departments in organizations vary. Some of the essential documents an organization HR’s department should collect include; hiring records, employment eligibility verification or form 1–9, payroll and tax records, and other common employment-related records. A detailed list includes;

Education Information
Past Employment Information
Curriculum vitae cover letter and job application document.
Letter of Employment, detailed list of the job role, and employment contract
Training records
Payroll and benefit records
Disciplinary action reports
Contact information in case of emergency
Resignation letter
Disability records
Accident and safety records
Exit interview information
Performance Appraisal reports

Try out the Sesame HR file management software to automate your file documentation and erase the cumbersome nature of managing a pile of documents. Importantly, all documents are 100% secured.

HR professional with experience in building strong 𝐜𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐯𝐞 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐢𝐞𝐬 among HR leaders. As the founder of the 𝐇𝐑 𝐂𝐥𝐮𝐛 and 𝐇𝐑 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲, I leverage my 15+ years of experience to enhance the professional landscape for HR leaders.

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tiagosantos

HR Content Specialist

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