Summary:
In this article, learn what types of personnel records organizations should keep, including general and confidential files. It highlights their role in legal compliance, tax filing, promotions, and dispute resolution, and explains that not only does digitization and security management improve efficiency and privacy, but it also provides the following benefits:
- Ensures compliance with legal requirements.
- Simplifies tax filing, payroll, and HR decisions.
- Provides documentation for disputes or investigations.
- Improves efficiency and performance management.
- Enhances security and protects sensitive data.
- Reduces paperwork and makes records easier to store and retrieve.
Personnel records are the standard way of documenting an employee’s relationship with a company or organization. In some instances, these records contain general information, whereas other times, they may include private or confidential details. Regardless of the file type, personnel records need to be regularly updated to ensure operational efficiency and success.
What are personnel records?
Personnel records are records pertaining to the employees at an organization, and consist of comprehensive, accumulated information. Personnel records, or personnel files, are typically maintained by an agency’s HR department and include relevant insights regarding an employee’s application, job description, salary data, and more.6 common types of personnel records that should be maintained
While there are a range of personnel records an organization may use, all these documents fit into one of six categories. Of these categories, the most referenced tend to be hiring documents and reports on job performance.- General information: This grouping encompasses personal information like the employee’s full name, birth date, social security number, phone number, address, and potentially their emergency contact numbers, as well.
- Hiring documents: Most employers hang on to documents used in the hiring process, such as employment applications, job descriptions, and resumes or cover letters.
- Employee agreements: At times, aspects of the employer-employee relationship are governed by official documents such as union contracts, non-compete agreements, and confidentiality or non-disclosure agreements.
- Compensation: Records related to compensation (and benefits information) include W-4s, beneficiary forms, payroll records, and timecards for previous years.
- Job performance: This section is rather broad, but can include performance evaluations, corrective actions, disciplinary letters, awards, nominations, education, credentials, training records, or promotions within the agency.
- Post-employment information: In the same way employers retain hiring documents, many file post-employment information, too. These documents are things like a resignation or termination letter, final performance appraisal, and final paycheck.
6 records that should be kept in a separate, confidential file
It’s a good idea — and often legally required — to keep certain employee records and information in a confidential file that’s separate from the rest of your paperwork. Proper personnel records management might take some extra effort, but it’s a necessary step toward protecting the privacy of all employees or staff members.- Background check results: Background check results span from past employment verification to credit history, to the criminal history of an applicant. Conducting background checks is done to ensure the safety and security of every employee.
- Litigation documents: Litigation is a process for handling disputes within the court system. Documents involved with litigation (i.e. the contested action itself or the final decision by the judge) should always be stored in a confidential file.
- Form I-9s: Form I-9s are used to verify the identity and employment authorization of individuals hired for work in the United States. Because these forms possess highly sensitive, personally identifiable information, they mandate careful protection.
- Medical records: Any employment-related document that contains medical information must be saved independent of other personnel files, so nothing is inadvertently revealed or shared with another employee.
- Federal and state leave documents: Most federal and state workers receive paid leave each year for situations like the birth, adoption, or foster placement of a new child; caring for a spouse, child, or parent; military caregiving and leave purposes; and personal health reasons, all of which are completely confidential.
- Employee investigation: Documents referring to the disciplinary action of an employee, or an HR investigation concerning an employee claim, need to be safeguarded in a confidential file that cannot be accessed by other staff members in the office.