Effectively managing employee records and updates

Published on
January 18, 2024
Effectively managing employee records and updates

Effectively managing employee records and updates: everything you need to know

Are you responsible for managing employee records? Whether you're an HR manager or a business owner, this task can often feel overwhelming. While creating an employee file upon hiring is straightforward, ensuring it remains up-to-date is far more challenging. Discover everything you need to know about keeping employee records current and how HR document management software can make the process easier!

What is an employee record, and why is it important?

For every employee in your company, it is essential to create and maintain a personnel file. This file centralizes all documents related to the employee’s HR status and payroll information. Some key documents include:

Personal identification details
Employment contract
Payslips
Performance review reports
Training certificates
Documents related to termination (resignation, dismissal, etc.)

Although not always legally required, some collective agreements may mandate their creation. Regardless, maintaining a comprehensive employee record is crucial for tracking career progression and having all relevant documents readily available in case of disputes with the employee or regulatory authorities.

Why maintaining employee records properly is essential

While maintaining personnel records is not a legal obligation in all cases, it remains an indispensable practice for businesses of any size. Here are some key benefits:

Efficient document management: Centralizing all documents for each employee ensures easy access and updates, saving valuable time for HR teams.

Legal protection: Keeping thorough employment records protects the company in case of disputes, ensuring compliance with labor laws and providing necessary documentation for legal defense.

Employee monitoring and development: With properly managed records, businesses can track employee progress, performance reviews, salary evolution, and leave history at a glance.

Effectively managing employee records means saving time, increasing efficiency, and ensuring compliance, which is essential for a productive and well-organized company.

Why and how to keep employee records updated

Creating and organizing personnel records is only the first step. To maximize their usefulness, these records must be regularly updated. Two main factors necessitate updates:

Changes in legislation: Labor laws frequently evolve, requiring updates to document retention policies, mandatory records, and compliance standards.

Changes in employee status: Personnel files must be updated for any modifications related to employees, such as:

  • Change of address or personal details
  • Work accident reports
  • New training certifications
  • Contract amendments
  • Performance evaluations
  • Resignation or termination

Every update should be backed by supporting documentation, either provided by the employee (e.g., proof of address change) or by the company (e.g., updated performance review). Previous records must always be retained to maintain a clear history of employment and compliance.

Using digital tools to streamline employee record management

Maintaining and updating personnel files manually can be complex and time-consuming. It requires staying up to date with regulations, being responsive to changes, and ensuring all information is properly stored and organized.

HR management software offers a more efficient way to handle personnel records. The transition to digital files simplifies processes and provides multiple advantages:

Eliminating paper-based records: Avoids storage and logistics challenges, especially for larger organizations.
Automated compliance updates: HR software automatically adapts to new legal requirements, such as changes in document retention periods.
Easy document updates: New files and records can be uploaded directly into the system, timestamped, and classified automatically.
Secure access and organization: Digital tools ensure documents are safely stored, easy to retrieve, and accessible only to authorized personnel.

By using HR document management solutions, companies can avoid errors, save time, and ensure compliance effortlessly. Keeping employee records up-to-date no longer needs to be a tedious administrative burden—with the right tools, it becomes a seamless and efficient process.