What You Need to Know About Managing Employee Records?

Employee Records make up for a crucial part of all the organizational records. Not only their sheer volume is humongous, they contain information essential for compliance, support and security. Employee records must be up on your priority list alongside the financial records for organization and curation.

In this post, we will tell you about some crucial pointers about Managing Records. Let us get started!

Why Managing Employee Records is Essential?

It is always important to know the ‘why’ behind something before executing it. Managing Employee Records is critical because of the following reasons;

Dodge Litigation

Nothing can be as stressful and unproductive as settling a petty lawsuit. Though, litigation comes as the real-time possibility for every legal corporate entity. They can pop-up into existence at the least expectant time. A termination or unfortunate sour relationship with an existing employee can invite a lawsuit. However, as company, you are bound to justify your actions, whatever they may be. Having a sound record of the employees on your payroll, from background info to key performance notes besides other obvious documents becomes important. Properly managed Employee Records can quickly squash a frivolous lawsuit and ensure smooth compliance operations without additional costs.

Drive Competence

Competence is an age-old concept for business success and is still applicable to every organization working at any level, anywhere. Records pertaining to Employees’ training and performance play a significant role in driving competition. When you have all the information, in physical or digital format, you can work towards improving core productivity and aid in the overall development of the employees. Records like Efficiency output, self-assessment reports, managerial assessment reports, annual confidential reports, training schedules, etc. can ease up your workload towards nurturing a highly competent workforce.


To say the least, Compliance is another major reason for you to manage your Employee Records as per the standards. All the countries across the globe and every business are bound by local and international regulations pertaining to Employee Records. Properly managed Employee Records will yield easier compliance operations for you!


You think your old employees won’t be of any value once they leave your organization? Well, you must give that thought another spin for reconsideration. In the present era, networking is of utmost importance. Your ex-employees can prove to be a valuable link for references, recommendations and even business support if they are running a venture of their own. This strategy can very well fair you through cross-industrial relations, all with simple Employee Record Management!

Which Employee Records need Management and How?

Let us hop to another important part. The following Employee Records must be organized meticulously;

Personnel Files

Personnel files are the fundamental records of an organization’s employees. The HR Department, as a standard practice, creates a digital/physical personnel file for every employee. These records contain the basic and essential confidential information of the employees like-Name, Date of Birth, Residence Address, previous employers, education, background referral checks, etc. For any litigation support and compliance, Personnel records are a must have.

Payroll Records

These records surely help in auditing and litigation support relating to salary and settlement disputes. Payroll records typically contain information like Salary band, pay period (weekly, monthly, annually, etc.), salaries or on-contract employee, exempted or non-exempted, payroll deduction, benefits and allowances, and attendance records. These records might also contain information pertaining to an employee’s loans, credit history and other relevant information for use when called for.

Medical Records

Medical records are often overlooked by many companies, though, they are of crucial essence. Employees’ medical records contain basic information such as their blood group, record of pre-existing conditions, special medical conditions, etc. Medical records might not be limited to this and contain Healthcare Insurance information of the employees as well. In fact, keeping a record of an employee’s healthcare insurance is a regulatory mandate in many parts of the globe.

How can an Enterprise Manage all these Records Flawlessly?

Companies that have a Record & Data Management departments dedicated for the purpose enjoy the benefits of Flawless record management. Depending upon their needs, they can opt for an On-site RMS or an Off-site RMS. Small enterprise, however, usually hire an RMS Vendor to save overhead costs and enjoy the similar benefits. Depending upon your needs and resource availability, you can opt for professional Record Management Services.

Till then, keep curating the mission critical records and data. See you soon with a new post!

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Anuj RawatWhat You Need to Know About Managing Employee Records?