Importance of employee record keeping

Employee record keeping is federally mandated in the United States, but it can also be used as a valuable asset to your company. When running a business, keeping accurate and updated records of your employees is crucial to the success of your business.

What are employee records?

Employee records are secure documents where information about employees is written. Employee records help business owners keep track of a variety of things, including wages, performance reviews, contact information, and more. It is recommended that you store business and employee documents in a secure area with limited access to protect everyone’s privacy

Federally Required Records

Some type of employee record All business owners are required by federal law to keep The reason they are federally mandated is to protect you and your employees. If there is a legal dispute, criminal investigation, or something as small as a layoff, the government wants access to accurate information.

Here are the federally required employee records you’ll keep as a business owner and what they’re required to do.

Equal Employment Opportunity Commission (EEOC)

EEOC Act Passed in 1965 and protects the right of workers to be eligible for employment regardless of race, sex, or religion. This law protects employees from discrimination before, during and after employment. Additionally, the act establishes a requirement for employers to keep all employee records for at least one year in addition to one year after termination.

Age Discrimination in Employment Act (ADEA)

ADEA, passed in 1967, prohibits employers from discriminating against a prospective or current employee on the basis of age. It ensures that employers provide equal benefits and pay to all employees regardless of age. This law requires you to retain payroll records and benefit program documents for at least three years.

Fair Labor Standards Act (FLSA) and Equal Pay Act (EPA)

FLSA and EPA It is put in place to prevent discrimination on the basis of gender in employee pay. These laws mandate that you document any justification for pay differentials between employees of different genders and keep those records for two years, and that you properly document employee pay.

Other types of employee records

There are several other types of employee records that are useful to keep on hand if possible. Documenting issues such as employee behavior, wages and performance can prevent workplace disputes. After all, if it’s already written, there’s no need to argue about it.

Here are some other examples of employee records it might be wise to have available:

  • Contact information (email, phone, etc.)
  • Behavioral notes/write-ups
  • presence
  • PTO
  • convenience
  • Training experience
  • Accommodation at workplace

1. Useful for performance review

Performance review A normal part of employment, although sometimes they can be terrifying. One way to make this process easier is to create a record of the performance reviews you’ve done. That way, the next time you sit down with an employee, the notes from your previous meeting will be fresh in your mind.

It’s always a good idea to document employee behavior, even if you’re not interested in committing to a full-on write-up. For example, if you notice that an employee is late to work from time to time or has an argument with another co-worker, you should write it down. This saves HR the headache if they ever have to investigate an employee’s past behavior.

2. Creates an employee profile

Employee records allow you to organize information about each of your employees that you otherwise wouldn’t be able to remember. For example, if an employee performs better during the evening shift, you can make a note of this and refer to it when creating a schedule. Creating an employee profile allows you to see the bigger picture surrounding each of your employees.

This can help you identify your recurring problems with certain employees or, alternatively, their recurring areas of success. If an employee impresses you in one area but struggles in another, some coaching may be necessary. Their employee profiles are where you can find the information you need to make sure all your employees are doing their best.

3. Protects against lawsuits

In the event that you are sued by a former or current employee, you can always rely on documents and records to back up the truth. These documents can protect you from false accusations and legal problems later. No one ever plans to get sued, but it’s better to be safe than sorry.

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Keeping employee records can protect you, your company, and your employees from unnecessary legal or personal disputes. Being organized and prepared is the best way to do business, and it can keep you and your employees out of trouble in the long run. Be sure to document as much as possible about your workplace and your employees to prevent misunderstandings down the road.

One of the goals you may want to achieve for your business is to have a safe, healthy and productive work environment Happy and engaged employees.Employee record keeping can help do this by protecting you and your employees.

Ari bratisis

Tim Writer: Ari is a writer, blogger and small business owner based in Washington State.

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Article Tags:

Business Opportunities · Company Culture · Featured · Find Your Way · Grow Your Business · Leadership · Your Mindset

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Find Your Way · Grow Your Business · Lead Your Team · Productivity · Your Mindset

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