Having a good employee records management system is essential for any successful business. Not only can good records management help with the administrative side of managing a business, it can also improve employee satisfaction, help you create action plans for employees, and help defend should you need to terminate an employee. Let’s look more closely at five major benefits of having an organized employee records management system.
One of the biggest benefits an organized employee records management system can offer is that it provides an outlet for performance evaluations. A thorough records management system will allow employers to record employee performance over time, and in turn provide evidence for promotion or termination based on his/her performance.
Records management can also allow employers to create action plans for improving employee performance. Action plans can be put in place to help struggling employees, and their progress can be more easily tracked using employee management software. Many records management systems allow for action plans to be tracked, which can be adjusted over time as needed, should the employee’s performance improve or decline.
Good record keeping can also provide the proof needed for pay employee adjustments , leading to greater employee satisfaction. Records can provide information on performance pay adjustments, as well as regular cost of living adjustments. Pay adjustments are an essential part of employee satisfaction and retention, and detailed record keeping can help identify when an employee may be due for an adjustment or raise.
Another benefit of good records management is that employers can easily track patterns in employee performance. This can be especially helpful in determining whether an employee is best suited for a position. Tracking patterns can also make it easier to see when a specific area has too many or not enough employees. Having a record of these patterns can make hiring or firing justified with evidence.
Provide Justification for Termination
And finally, but importantly, good record keeping can provide justification needed for termination. When an employee isn’t performing to the best of their ability, and action plans have failed, it may be time to suggest another position in the company, or for discussing a separation from the company altogether. When it comes time to terminate an employee, a paper trail showing their unsatisfactory performance is essential and could prevent a wrongful termination lawsuit. Having a thorough and organized performance record can defendan employer should the terminated employee seek legal action against the company. Regular performance evaluations, action plans and well documented records can serve as proof against wrongful termination.
Good record keeping is an essential part of any business, and when you manage a large (or even small) staff, having organized records is of utmost importance. Failure to keep careful track of performance evaluations, action plans, compensation information, and other relevant details related to your employees could have disastrous implications for your company. If your employee records management system is in need of an overhaul, give us a call today to discuss what our records management systems can do for you and your business.