From the very first day of stepping into an organization for prospects and career opportunities, every employee’s journey is noted in that organization. From the first step until his/her final departure from that organization, every record from onboarding to offboarding is to be recorded in the organization maintaining data privacy as well. Employee records are also reckoned as the personnel records that document the key relationship between the employees and the organization that include personal information of the employees, job details, performance evaluation reviews, employee payroll and assessment, and other critical information, like personally identifiable information (PII), DE and I information related to ethnicity, race, religion, medical state of the employees, absence records, grievance records and many more.
Managing and keeping such records safe, and maintaining confidentiality falls upon one of the superintending responsibilities of the Human Resources (HR) department. In this blog article, we will be excavating the employee records with their safety measures, along with privacy, as such records have a leviathan impact upon not only a single employee but the whole organization.
Employees’ personal or professional information is very crucial for the organization in every aspect. Such information should be handled and safeguarded responsibly. These records should be compliant with the data protection laws and the laws related to Privacy as well. If such records are leaked mishandled or used without consent, the consequences have to be repaid at huge sums, not only financially, but also may cause reputational damage, workplace strife, conflict, penalties, and many more. Data protection is vital in managing employee records. It may sound important for the organizational aspect of initiating data protection compliance efforts, but the employees’ personal information needs to be secured as well as the breaches of personal data of employees have a huge negative effect on employee records.
Employee records are well-kept in HR systems where every record of past and current employees is safeguarded that act as the historical archive, proof of evidence, and current employees are safeguarded that act as the historical archive, proof of evidence and current stats of the workplace that keep on organization well-organized, efficient, and compliant with the business laws and data protection.
Maintenance of consistent and accurate employee records serves as one of the strong foundations for HRM as the records from onboarding to payroll, performance evaluation to personal information, everything is maintained that helps to take important business decisions and other initiations for the organization. These employee records are significant for the organization to stay compliant with legal, regulatory, and prevailing laws and sine qua non. There are many such records as HMRC records, which are shown as proof to show that the employees are paid accordingly after necessary, but right deductions. The leave records, for example, of the employees can be shown as proof when they claim for their sickness. Many such records need to be recorded and safeguarded with equal privacy and confidentiality. And this very responsibility has to be fulfilled by HR in a very precise way.
Employee records track everything related to employees from personal identifiable information (PII) to workplace evaluation. Maintaining these records is not a facile task. There are many challenges linked with maintaining the employees' records. Let's switch to the major challenges regarding the proper maintenance of employee records along with the practical solutions to overcome such remonstrances.
Challenge number 1: High risk of data security (how to protect the employee data from ultimate data breaches, potential security threats like cyber attacks and unauthorized accesses)
The solution to number 1: Complying with data security policies by investing in well-equipped and trustable HR software for the collection, storage, management, and safeguarding of employee's data
Challenge number 2: Variety of legal and regulatory requirements (Changes in employment and Data Privacy Act, laws with compliance as major demurrer)
Solution to number 2: Keeping the staff updated about the varying laws and legal changes. Regular training and development opportunities should be given the priority.
Challenge number 3: With greater organization comes the bulk of voluminous information (when the organization grows so does the employee data creating lots of screwups and miscues)
Solution to number 3: Investing in HR systems that can handle mammoth data records. Plus regular audits are also recommended.
Challenge number 4: How to keep accurate and consistent data records?
The solution to number 4: Leverage HR software with a standardized record-keeping process with well-equipped digital systems ensuring secure access controls to the authorized personnel only.
For additional solutions to the existing and new challenges, there should be a regular audit of the safety measures, reviewing and updating of records, and assurance that the records meet compliance and regulatory requirements.
Employee records are to be kept safely but unwanted records should be destroyed or kept elsewhere from the relevant and significant employee records. So the efficient retention policies should also be clarified. For instance, there should be an estimation of keeping the ex-employee records for a certain time. But storing such data for this much time or longer periods, such tenure may vary per organization, business category, or internal policies. According to some popular HR websites, we have collected the tenure of the type of employee records that must be maintained.
i) Tax, Insurance: 3 years from the end of the tax year
ii) Working time records: Two years
iii) Accidental reports: 3 years from the date of the last entry
iv) Employee training records: Five years after the employee's departure
It is recommended to keep such employee records for at least 6 years that may be used as proof against any type of negative claims or propaganda against the organization. The strict legal parameters guide the organizational landscape and keeping with compliance and regulatory requirements is a must so maintaining accurate, consistent, and well-organized employee records should be prioritized not only to meet compliance but also to maintain the organizational prestige and ethics avoiding the costly fines and penalties.
i) Understanding of Labor, Employment, and Data Protection Laws, Privacy Laws, Acts, etc.
ii) Opting for a trustworthy robust HR software and database system with a standardized record-keeping system
iii) Organized and consistent data entry with regular audits
iv) Documenting essential records starting from the first step of the employees’ journey until his/her deferential exit or departure from the office
v) Retention of the employee records from onboarding to offboarding to show as proof of adherence whenever required
vi) Categorizing records based on importance, requirements and determining retention as well as disposal methods and policies considering data protection and privacy
vii) Regular data backup plans with recovery and restoration processes
viii) Frequent updates on the shifting of the legal environment and potential transformation of existing risks
While talking about the challenges and practical solutions to maintaining employee records, Data privacy should not be avoided. In international scenarios, there are modern privacy laws such as GDPR and CPRA that focus on the right to privacy. Meanwhile, organizations specifically HR should maintain transparency, but also confidentiality as well. They must make sure that the employee records do not fall upon the dirty hands that may hamper the reputation of both employees and the whole organization. Data protection and privacy laws guide the ways of the storage, processing, and sharing of personal information maintaining individual privacy.
Some of the governing laws of Nepal are:
i) Article 28 (Right to Privacy), Constitution of Nepal
ii) Individual Privacy Act, 2018
iii) Individual Privacy Regulation, 2020
iv) Muluki Criminal Code, 2017
Such laws contain other subsections as well regarding the privacy of an individual's data. In Nepal, organizations must look upon the Individual Privacy Act, of 2018 regarding data privacy.
Employee records are like the roadmap of the employee from his/her entry to exit in the organization and keeping them safe and maintaining data privacy is the top-notch priority of the organization not for compliance only but for the smooth operation of the business meeting legal adherence with ethical success and strong employee belief and trust within the organization.