Optimizing Personnel Records Management

Human Resources software applications add a much needed structure to workforce management processes. By creating structured data files for all employees, HR can optimize workforce transactions such as recruiting, reviews, pay raises, benefits, vacation accrual, transfers and relocations. While most organizations have brought their HR systems online using their ERP’s HR application, there is one component of each employee’s personnel information that remains outside this application: the personnel file.

Even in highly automated HR organizations, there can be two or more distinct sets of files that make up a complete personnel file. Beyond the employee database, there are numerous filing cabinets containing documents for each employee such as resumes, letters of recommendation and performance reviews. Some organizations will have another set of filing cabinets dedicated to medical benefit documentation. Managing multiple sets of records requires clerical support and administrative overhead.

On a day-to-day basis, the use of paper based employee personnel records presents some significant challenges for HR. Managers require HR staff assistance to access and view an entire employee record and these records take time to collate and assemble. Misplaced documents can disrupt transactions and divert HR staff from other responsibilities. Privacy and security are difficult to manage across dissimilar systems and compliance with state and federal worker regulations such as HIPAA requires special records retention and disposition management.