The importance of an accurate employee record stretches far beyond the legal ramifications of that information not being current. For employers, keeping accurate records can help recruitment, identify gaps in skills, and save time while performing administrative duties. If you're looking for one way to improve your Human Resources department and ease your burden during inspections, consider these reasons to improve the accuracy of your employee records.
Prevent Litigation
No employer likes to dwell on the possibility of litigation, but a termination may result in legal action and a complete employee record can provide documentation and justification for your actions as a company. Employee records must be maintained at least one year after employee termination and, if kept up-to-date, they can be invaluable for preventing a frivolous lawsuit. An accurate and updated employee record not only records employee information, but also issues that led to termination or reprimands.
Ensure Competency
While some industries, like healthcare and public works, focus on competency, it's an important concept for all businesses. Employees need to be properly trained and educated on their job duties before working independently to prevent mistakes or injuries. Keeping an accurate employee record of staff training helps document that you have not only given employees the correct information to do their job, but also that the employee agrees to having been trained. When scheduling or cross-training, a well-kept employee file can help determine who is competent in various areas and able to help other departments. During inspections, you can verify training. Competency is a key benefit of an accurate employee record.
Continue Networking
Just because an employee leaves your company doesn't mean that's the last you've heard from them. During subsequent job hunts and strategic moves, you may run into that employee professionally. They may be your new sales representative, board member, or applicant for an advertised job. Having accurate, secure, and complete employee records can help jog your memory when an old face pops up for a reference or a new job, even after their manager has left. Often, employers receive calls about former employees for new job opportunities and a quick look at their employee record can yield vital information about the employee's work ethic. Keeping employee records past the date they work with the company can help identify other workers in your industry that may return to your company in the future.
For Employee and Managerial Review
Accurate employee records offer a global view of the employee and their time at a company. Whether you're training a new manager and want them to understand the employment history of their new employees or have an employee asking to see their file, accurate employee records are essential for presenting a non-biased look at an employee's work history. When needed, having the ability to understand an employee's career in one file can save time.
Meet Legal Requirements
Keeping employee files isn't just a convenience for businesses, it's also a legal responsibility. Maintaining tax information, wage information, employee demographics, and other required documentation is essential to meeting your legal obligations. When regulators ask for employee information, having it available in a single, easy to find place is essential.
Maintaining accurate employee records is far from a burden. In fact, with a workforce management system, it can be both easy and secure. Employee records can help employers by meeting legal obligations and avoid litigation and it can help new managers understand their employee's background. Employers still need to be diligent in establishing and maintaining their employee records to help their business and their employees thrive in today's workforce.
