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Records management

Accurate HR records can save your business money

Thu, 19 Jan 2012 09:20

While maintaining employee records is considered to be one of the more tedious tasks for HR practitioners, it is in the best interest of the organisation to possess a sound record-keeping system, says HR consultant Sharon Lefkowitz.

There are a few key reasons to make effective records management a priority, not the least of which is the legal requirement to maintain accurate records of personnel, with requirement to keep specific information about an employee as set out in the Basic Conditions of Employment Act.

Further schedule 8 of the Labour Relations Act, requires that you keep any disciplinary or grievance or related documentation This is particularly important when an employee takes legal action against the company and accurate records are required to present a case.

In addition, efficient records management eliminates time spent searching endlessly for documents and provides key data and information needed to make informed management decisions. The HR department is the gateway to and information hub for all personnel files, employee records and relevant legal documents as well as any other information that you are expected to store, maintain, access or destroy.

HR record systems are likely to fail when there is “no policy in place and nobody is accountable for the process” says Lefkowitz.

There are three questions to consider when determining whether your system needs an overhaul. How long does it take to access data? Are you duplicating your work? Are you getting the management information you need to make informed decisions as well as complete relevant statutory and management reports?

HR is required to submit a number of legal documents including BEE reports, Employment Equity reports and Seta workplace skills plan reports. The information required for these reports are relatively similar and can be interchanged. However HR practitioners with flawed record management systems often end up doing double the work, says Lefkowitz.

Even though a number of companies still make use of paper-based systems, Sharon says this is a futile exercise, especially if your electronic system has back-ups. However it is important to note that hard copies of contractual documents are still required by law.

Sharon highlights the need to obtain buy-in from the entire organisation as the project requires co-operation from members inside and outside the HR team. For example the IT and Finance divisions play a big role in the installation and management of the record system, especially where payroll resides with the Finance Division.

One of the biggest challenges is recapturing information accurately and developing a logical framework to classify and arrange your HR/personnel records. The quality of the records is directly proportionate to the accuracy of the information, and maintaining a high level of accuracy when moving from one system to another can be one of the greatest difficulties.

This challenge is not restricted to periods of transition but is an ongoing threat to the quality of the records and an element of record-keeping that must be continually monitored by HR.

Giving staff access to an electronic system is a good way to minimise the workload, however Sharon cautions management to settle matters around accountability and access restrictions first, in order to maintain control.

A key first step is to audit your current HR records and see where the gaps are and identify areas for improvement.

All of these issues and more will be discussed during the 2-day Effective HR Records Management course hosted by Alusani Skills & Training Network. Equip yourself with the very latest and best practices in developing a user-friendly and compliant HR records management strategy for your company.

The training course will run on 15 & 16 March 2012 in Johannesburg, for more information call 011 447 7470, email faith@alusani.co.za or visit Alusani Skills & Training Network

By Cindy Payle