Why keeping employee records matters

Managing employees is a fundamental aspect of running a company. Whether you operate a small business or a large corporation, it is important to have records on all of your employees.

Why is this so important?

Ensuring legal compliance

Your company may be subject to audits from government agencies. For example, if you employ immigrant workers on visas, the authorities may conduct inspections to verify the status of your workers.

If your business has over 25 employees, you’ll need to be registered on the government’s E-verify system. Even if you employ fewer people than this, all documentation, such as Form 1-9 documents, will be checked.

You should also keep copies of your employment contracts, tax information and records of working hours. Keeping records ensures compliance, meaning that you avoid financial penalties for non-compliance.

Monitoring employee conduct

It is also important to have records that document employee progression. At the same time, if an employee has struggled with discipline, you should record all disciplinary hearings and actions. This helps to show that your processes are compliant. It also prevents accusations of discrimination, because there are records that show employees are being disciplined and rewarded for valid reasons and not discriminatory reasons.

On the whole, having accurate employee records will help your business to run much more efficiently. Your HR team will be able to make informed decisions, limiting administrative errors and preventing legal claims against your business.

Organizational efficiency and legal compliance are areas that we can help with. We can help you find the most structured ways to store employee records. Contact us today to arrange a consultation.