When employees leave the company they are working for, the HRMS data linked with their employment is either forgotten or mismanaged. There are certain data that you can save and some can even be of use in the future. The period of time by which data can be stored will have to depend on the type of its context.
Understanding the Requirements of the Law and Auditing
Countries have different laws with regards to the retention of the data of employees. There are cases when they need to store this personal information. There are times when need to discard this data. On the other hand, there are certain industries that may even have other requirements when it comes to geographic data. The best practices of retaining HRMS data may be different for various types of data. For example, the data of payroll needs to be stored for a longer period of time, as compared to the data related to benefits or health. A majority of companies are fortunate since they consist of a legal department that can analyze the laws of the government and provide the necessary answers, as a start.
Identify the Requirements of Data Retention
For many individuals, identity theft can be a serious concern. An HRMS consists of lots of sensitive information like the details of bank accounts, credit cards and social security numbers. For this reason, it can be an easy target for thieves. An employee’s termination from work reduces the need for accessing his/her data. It is important to think about the individuals who would need access to the data of an employee whose contract has ended and the intention behind this.
An HR staff has to explain to an employee why he/she needs to transfer cobra coverage or 401k and his/her reason should support the need to have access to the record of the employee for the first months. The payroll or benefits department may have to take a look at this information on the first year following termination. In case of a tax audit, the payroll department may need to see this for seven years. An expert HR analytics team is responsible for producing annual metrics, like a turnover for the last three years. Therefore, its members will need some of this important data. Lastly, recruitment team needs to gain access to the information of a former employee that is most likely to be rehired.
Define the Levels and Rules of User Access
Is there any business related reason for a person to need access to the personal details of a terminated employee for a longer time like, for instance, five years? There are several companies that have full access to the data of their employees who have already left them some 10 years ago or even more. This situation can be considered as a security risk of HRMS data. It can, also, be a cause for confusion or mistakes, in case HR professionals need to sort through older information to get to existing employees. The most ideal practices advise to establish a number of guidelines that people can follow and make use of HRMS security access levels so that the data of former employees will be inaccessible to a majority of users in time.