A client recently asked how employee files should be organized. We recommend having five separate files for each employee, as outlined here. These files should be kept in a secure location that is only accessible to those in the HR function or those with a legitimate need to review the information—for instance, in locked cabinets inside a locked HR office. This information can be stored electronically if that makes sense for your business. Just make sure that it’s well secured and backed up to prevent data loss.
Click here to learn more about the five files you need for each employee.