Peer to Peer Magazine

Winter 2015

The quarterly publication of the International Legal Technology Association

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Page 52 of 71

PEER TO PEER: THE QUARTERLY MAGA ZINE OF ILTA 54 If you have employees, you have to maintain personnel files. As soon as headcount reaches 15, federal guidelines dictate which documents you must retain and for how long. Now you are in the land of document management and walking among critical compliance risks: • Incomplete or missing documents • Noncompliant recordkeeping around how long documents must be retained and how organizations should react to audits or litigation • The risks associated with sharing personnel documents These risks can be avoided with the right practices and technology. HR TECHNOLOGIES AND DOCUMENT RECORDKEEPING It is important to address HR technologies as we discuss HR document management compliance because each system impacts compliant recordkeeping. Most organizations have a human resources information system (HRIS), a component of an enterprise resource planning (ERP) system or an outsourced service provider. In the last few years, more companies have adopted onboarding or recruiting software and variations of human capital information management tools. In 2012, analysts estimated this was over a $4 billion market and growing. Bersin by Deloitte estimates that the average large HR department uses at least seven different systems, and this does not include those for time and attendance. Each FEATURES technology serves a purpose, but together they create information silos. The same documents or information might exist in more than one system, with people printing out documents from one system so they can put the information into another one. It is nearly impossible to see a comprehensive view of an employee. Since most of these systems were designed to manage HR data rather than documents, they do not really help with document recordkeeping. At best, they offer a way to upload attachments to an employee record. HR technology silos contribute to document compliance risk. HR needs to connect these systems, have them talk to one another and simplify the process of managing HR documents. INCOMPLETE RECORDS It is good practice to use a new hire checklist, but gathering all the required documents, both paper and digital, can be challenging. While hiring managers collect some documents and staffing agencies or recruiters collect others, it is HR that ultimately retains responsibility for complete files. As documents are added to multiple systems, the challenge to locate and keep them up-to-date increases. Legal and HR experts agree that complete, up-to-date personnel files are an organization's strongest defense against AVOID HR DOCUMENT COMPLIANCE RISKS

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