Keeping your employee files up to date and compliant is key. Is an employee file audit on your to-do list this year? There’s no time like the present to get this mundane, but important HR foundational measure taken care of so you can move on to meatier, FUN HR stuff!
Step 1: Create a Plan
Before you get started, figure out what needs to be done. If you have paper files, your plan should most definitely be to migrate them to some form of electronic filing system. There are ways to do it easily and cost effectively without purchasing a huge Human Resources Information System (HRIS).
For any filing system, also think about whether your security, access, and retention processes are working and if any changes should be made to them. During step one, you should also figure out when you’d like to be finished – your deadline.
Step 2: Make a List and a Timeline
Have a current list of employees to work from to make sure all files are present and accounted for. Use an electronic checklist (for example, in an Excel spreadsheet) and add notes, highlights, tracking of documentation, and edits as you go along to identify and correct issues as they’re found. Delete terminated employees and add new ones.
Having a current list also helps you set a targeted timeline to meet your deadline. For example, if you start your audit the third week of July, your deadline is December 31st, and you have 150 employee files to audit, that gives you 25 weeks, which means you need to audit approximately six files per week.
Make interim deadlines. Identify when will you have 25 files done, then 50, and so on. Be generous with your timing, because it will take some time to get started and HR emergencies will likely come up during the process.
Step 3: Make a Documentation Checklist
Determine what information you need to have about employees and where each piece of information is kept. Will something be kept in the personnel file, medical and confidential file, or payroll and benefits file? Don’t forget to keep I-9 forms separate from all three of those!
The checklist will be your tool as you go through each file to ensure each item is present and in the right place. Each organization may have different needs. Some may require school transcripts, copies of various certifications, or proof of required training. Determine which items on the checklist are must-haves, meaning you’ll ask employees who are missing those items to furnish or complete them, and which do not need to be retroactively created.
Step 4: Do Training
Even if you’ve done file audits at multiple organizations and you’ve “seen it all,” training is still a good idea, especially if multiple individuals are auditing. Set aside time to go through three to five random files individually or as a group with all auditors. See what you come across.
The training process may prompt you to tweak your documentation checklist or make updates to your timeline, and it’s good practice for all auditors to work together and discuss whether items are necessary or cursory. Training should last a maximum of two hours.
Step 5: GO!
After completing training, get any final approvals necessary for your audit process, documentation checklist, and any planned changes to the filing system. Then… GO. Don’t stall at this stage of the game!
Try to schedule yourself for at least an hour within the first week after training to get an initial three to five files audited and processed on your own. If you’re planning on moving to a different filing system (such as moving from paper to electronic), audit when you’re ready to scan and do both at the same time so you don’t have to go through the documents more than once.
Need help planning or completing an employee file audit? Learn more about our consulting services here! Or send us a message here, and we’ll guide you to the right path.