However, the following laws apply to all businesses, and each agency has its own document retention requirements and guidelines. Company and policy documents should be included in an employee’s personnel file so they can be easily accessed by the employee’s manager, payroll team, or employee (depending on the state). While not required, these company documents, like signed policies, are good to keep on file. This evaluation mainly aims to assess the efficiency of an organization’s HR.
Employee file management is the act of filing, retaining, and destroying company records while remaining compliant. It can be one of the most challenging areas of HR administration as there are a number of state and federal laws dictating what records need to be maintained, as we saw above. Aside from the documents we have already looked at, there are other confidential documents that you should keep a record of. You must keep these documents separate from your standard employee files. You should keep a written record of an employee’s salary and compensation package and update their personal file each time their salary is adjusted.
Set a one-week deadline for all employee documentation to be received and completed. Make sure you go through each employee’s list with them present so you can address any issues straight away if anything wasn’t provided. The Immigration Reform and Control Act of 1986 requires employers to verify the identities of their employees and ensure that they are legally eligible to work in the United States. Employers must have a properly completed Form I-9 on file for all current employees.
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- You should restrict access to employee files to a single authorized person or department who needs authorization to examine the files.
- An employee file checklist is as important as other legal compliance documents for any company and must be maintained correctly.
- Companies can use employee management software to safeguard personnel files and other employee documents.
- We also noted that four employees did not receive lump sum payments they were due.
Protection of personal information, such as social security numbers, home addresses, phone numbers, etc., should be considered confidential and shared only on a need-to-know basis. Human resource management has become a very complex specialty because of the laws that govern how an organization manages its human capital. It is important to note that you cannot tell employees which documentation to bring; you must let them choose which documents to present from the Lists of Acceptable Documents. It’s also important to note that you should not “over-verify” their documentation—only document a List A item or a List B and List C item. The only people who should be granted access to this file are the employee, HR and law enforcement or the EEOC.
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- Your business should verify that files are in order before any audits, such as payroll or labor.
- Jennifer Soper has 25+ years of writing and content design experience, working with small businesses and Fortune 100 companies.
- Ensure that employee records include updated full names, contact information, and emergency contacts.
- Learn how to utilize some of the personnel file papers upon employment by following our onboarding instruction.
Instead, most companies these days choose to use an electronic personnel file system, also known as a digital employee file management system. This way, you can store all your documents online with an encrypted service, protecting you against unauthorized access, ensuring compliance, and saving you both time and space. You can choose to maintain your employee files in paper format in a locked cabinet if you prefer. However, this method can be messy, and it can take a long time to find data when you need it.
During a visit to the records management room, we observed that the key to the filing cabinets containing personnel records was on top of one of the cabinets. Our Employee Personnel File Audit Checklist Template is designed to streamline your HR auditing process with ease and precision. This comprehensive template ensures that all necessary employee documentation is thoroughly reviewed, organized, and compliant with company standards and legal requirements. Whether you’re auditing for accuracy, completeness, or regulatory compliance, this tool has you covered.This template is the ideal design to promote and get the word out! Customize as much as you need – add colors, change sizes and choose the best photos or icons from our free stock libraries to create your ideal design in Venngage. Simplify your HR admin tasks and maintain impeccable records with ease.
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This article helps you create your own proper personnel file that will help protect your company’s interests as well as increase employee satisfaction. A comprehensive checklist promotes clear communication and transparency between employers and employees. It ensures that both parties are aware of the documents required and why they are essential. The checklist also allows HR to track employee growth, performance, and milestones effectively. This organized approach strengthens employee relationships and fosters trust. In the long run, it contributes to a positive and professional workplace culture.
EasyHR is a user-friendly and intuitive HR software designed for SMEs and enterprises. It streamlines the management of HRIS records, leave and attendance, payroll, expenses, and travel, making HR operations effortless. If you’re looking for additional help on comprehensive file audit strategies and best practices, SHRM members have access to a great Managing Personnel Records Toolkit. Employment documentation consists of pre-hiring and hiring as well as employment history documents.
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Learn how to utilize some of the personnel file papers upon employment by following our onboarding instruction. The manager of an employee should not have access to private health information included in the employee file. The “personnel file checklist template word” is a free checklist that can be used to help create a personnel file. The document will provide you with a list of things that should be included in your personnel file.
The audit helps ensure legal compliance, identifies HR process weaknesses and highlights HR successes. Rather than using a traditional HR filing system, the safest, most reliable method of keeping employee personnel files in one place is using a digital solution, such as Factorial’s HR software. Our HR software allows you to keep all employee files in your own secure online database, giving you peace of mind.
The personnel file may be a real folder with printed documents or an electronic file saved using HR software such as Rippling. Companies should utilize an employee management platform like Rippling to protect personnel files and other worker information. It allows you to handle all aspects of employee administration in one spot, from onboarding to offboarding, as well as document management. To maintain compliance with federal, state, and local labor regulations, you may simply monitor and automate personnel data and operations. Conducting a personnel file audit can also flag possible HR process weaknesses. Likewise, personnel file audits can also point out where you are succeeding as an employer.
How do organizations secure employee file checklists?
The primary scope and purpose of forming and maintaining an employee personnel file audit checklist are to comply with the company’s data privacy and security parameters. Most companies only recognize the importance of maintaining these files if they’re served with a lawsuit or audited. Depending on the employment law, how long you keep certain records in employee personnel files differs. I recommend keeping records for at least four years following the termination of an employee to remain in compliance. This enables you to store, locate and manage all your employee records and maintain secure and confidential files for all staff data, regardless of your internal employee folder requirements. Accurate recordkeeping, as well as secure filing, storage, and maintenance of employee files, is an essential practice for all employers.
However, we noted that 31 of the remaining 2,623 (1%) employees did not have a PDP score on the reports provided by the Compensation Analyst. Documentation was not maintained to ascertain whether the PDP was omitted because the agency did not submit one, one was submitted later in 2022, or the PDP was not entered by Human Resources due to an oversight. We also noted that four employees did not receive lump sum payments they were due. Regular payroll audits can help keep costs down and avoid becoming the target of a labor investigation. Regular HR audits help in many ways—from maintaining compliance to realigning HR employee file audit strategies.
Amit leads the people revolution at PeopleStrong, focusing on employee well-being & organizational excellence. He enjoys writing, reading non-fiction & playing chess with his daughter. If your company is preparing to undergo any massive change, like a merger or an acquisition, conducting an HR audit will help you navigate the change more effortlessly. Lastly, create a structured action plan based on your audit report to bring your efforts to life. Assign responsibilities, set deadlines, and prioritize actions for maximum efficiency. EEOC information is often stored separately from each new hire’s job application and résumé in online applicant tracking systems (ATS); HR can access it, but interviewers and managers cannot.