Legislation surrounding proper employee classification and an increase in I-9 audits makes keeping track of employee records even more important for HR professionals and small business owners. Depending on the number of employees, this task can be simple or can consume hours of the day. Taking the time to audit and organize today will save a company from headache tomorrow.
Always Use a Checklist
A new hire checklist is a common tool used to ensure all new employees have a complete file have the information they need to be successful in their new position. Make sure that the personnel file is complete and includes a W-4, Direct Deposit when applicable, and employee information such as an address and emergency contact. Medical information and I-9’s should always be stored separately from the personnel files.
Organize and Alphabetize
A seemingly simple step will increase your efficiency. Many companies choose to alphabetize employee files. Taking this straightforward approach and applying this approach to all employee related documents such as I-9 forms or benefit enrollment forms streamlines things and allows you to quickly find and retrieve information when you need it. It takes only a few more moments on the front end, and saves time and confusion in the long run.
Conduct Regular Audits
Managing employee files can become overwhelming. Conduct internal audits of your employee files quarterly. Follow up on missing documentation and forms, correct and update incorrect information, and reorganize improperly filed forms. Keep an internal audit log to show due diligence.
Purge as Needed
Federal Guidelines state that the I-9 form must be kept for at least three years after an employee terminates. Many companies choose to follow this timeline for other paperwork as well, unless otherwise specified (tax records, W-2s, and garnishment information are a few examples of exceptions).
Third-party resources, such as Xenium, assist businesses by developing a customized system for employee paperwork, which can provide a secure and organized alternative to in-house storage.
