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Human Resources

HR Record Keeping for Small Businesses

Christine Batten, PHR
by Christine Batten, PHR on April 15, 2015

Record_Retention_Requirements_FrankCrumEfficient HR record keeping is a crucial part of properly running a business, and business owners should work closely with their HR departments to establish proper procedures regarding which records to keep and which to purge. Here are a few key points regarding the importance of accurate recording keeping.

What should I keep?

As a business owner, it’s important that you hang on to any records that deal with pertinent employee information, such as employee hand books, hiring records, employment records, pay records and termination records.

There are various labor laws that require a business to keep many of these records for a specific amount of time, and even when a business isn’t legally required to maintain these documents, sometimes it’s still a good idea to do so.

In the event of a lawsuit, these documents may be required to be produced and could end up proving to be useful for your defense. To reduce the need for storage space, it is sufficient to store your documents electronically. Just be sure to have an organized method of storage (identification) so the appropriate documents could be easily located, if needed. Click here to view a chart that provides more information on HR record keeping documents and their retention requirements.

Who should handle these records?

Because the information associated with any employment records could be sensitive, it’s important that only a few individuals take care of the disposal or maintenance of such records. If you’re a business owner, designate one or two people within your organization to handle this task.

Contact FrankCrum if you are interested in ongoing HR advice. Our HR consultants provide guidance on a wide range of HR topics and issues through a service called FrankAdvice.

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Christine Batten, PHR
ABOUT THE AUTHOR
Christine Batten, PHR

Christine has over 20 years of HR related experience with a background in labor and employment law.