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Clark Schaefer Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping, and Health, Safety & Security

What Are The Top 5 Commonly Missed Records In Employee Files?

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For human resources professionals, there are many things you simply have to get right in order to protect your organization, and recordkeeping is one of them. Employee files, also known as personnel files, are a key component of the recordkeeping process for any organization. They provide a written history of each employee’s tenure with an organization including important information such as pay increases, promotions, disciplinary action, etc. Additionally, there are several documents that are required to maintain HR compliance at the federal level in the United States. For example, check out the U.S. Department of Labor’s reference for federally required new employee documentation.

These documents and comprehensive files can be maintained physically on paper or digitally ideally using a defined data storage strategy supported by an organization’s IT department. Many employers utilize the U.S. Department of Labor’s digital data storage guidelines when developing a digital data storage strategy.

5 Most Commonly Missed Records in Employee Files

Out of all the documents required to be maintained in employee files, below are the five most commonly missed. Do you have these records in your employee files?

1. Pre-Hire Documents

Pre-hire documents include the employee’s resume and application, the signed offer letter or employment contract, a signed handbook acknowledgment, tax withholding forms, a signed code of conduct, and emergency contact information.

2. Wage and Salary Information

Wage and salary information include any increases given (e.g., merit, cost-of-living adjustment (COLA), or promotion-related increases), bonus information, and significant changes to an employee’s position relative to the Fair Labor Standards Act (FLSA) exemption status.

3. Performance Reviews

The performance review documentation that should be stored within an employee file may be a 30 or 90-day review or a signed copy of the employee’s quarterly/semi-annual/annual review. Follow your organization’s timeline and policies for performance reviews and ensure these are added to all employee files.

4. Disciplinary Action

Disciplinary action forms and performance improvement plans (PIPs) are key to maintaining a comprehensive and documented narrative for the employee’s performance. If for any reason an employee is terminated, it can provide information with the potential to protect an organization from litigation. Learn more about at-will employment termination risks and how to reduce your liability.

5. Training and Development

Training and Development documentation can include training plans or checklists, verification of federal or state-required training, as well as the employee’s attained certifications, degrees, and licenses.

 

How to Properly Store Employee Records

It’s important to understand and follow proper employee record storage procedures. For example, did you know it is recommended that the I-9 Form be stored separately from the employee files? According to the U.S. Citizenship and Immigration Services, I-9 Forms should be stored in a way that best fits your organization, yet is easily available for USCIS inspection. As a result, best practice leads to storing I-9s separately from other files.

Although there is some leeway with employee record storage, best practice is to maintain the following five separate sets of files:

  • Employee/Personnel
  • Medical
  • Confidential – Non-Medical
  • Form I-9
  • Candidates Not Hired

For more on what should be included in each of these files, read our article explaining how to organize employee records and remain compliant.

Regardless of the storage process you choose, be sure to audit your employee files to ensure compliance. We recommend creating an employee file document list for new hires and ongoing employment by reviewing federal and state requirements, record retention guidelines (which can vary for federal contractors), benefit documentation, and organization-specific documents. This will provide a starting point to validate that your organization’s current files aren’t missing any key forms.

Thank you to Mary Mitchell, MBA, SPHR, SHRM-SCP, CHRS, Senior HR Business Advisor for contributing to this Emerging Issues in HR.

Keep the guesswork out of how to store and maintain your employee files. Strategic HR has a handy Recordkeeping Desktop Reference that outlines the employee documents you should have on file and how long to keep them. Learn more about our HR Compliance & Recordkeeping Services or Contact Us for help!

Clark Schaefer Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping, and Health, Safety & Security

Why Is It Important To Get An Employee’s Signature?

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Have you ever had an employee question an employment agreement or say they didn’t mean to agree to a term of their employment? Why is it so important to get an employee’s signature?

This is a critical question for all employers, and the answer applies to more than just employment agreements! At its root, a signature is used to show the intent of an individual to bind oneself to a contract or make a written representation.

Why is an Employee’s Signature Important?

In the case of a new hire’s employment agreement, the signature here binds both the employee-to-be and the company to the agreed-upon terms such as salary, benefits, schedule, etc. – all items you don’t want to have to argue over after the employee has already started.

There are other instances where having an employee’s signature can help to protect your organization beyond the employment agreement. For example, when memorializing a performance conversation, it may be important to have an employee make a written representation of the fact that they were there, they understand the conversation, and they’ve agreed to any future action discussed during the meeting.

Obtaining an employee’s signature on documents such as these not only helps to clarify expectations, but it can also be an important part of your organization’s risk mitigation.

Employee Signature Best Practices

These signed documents are used should the agreement, the conversation, or actions be called into question, whether that’s internally or in a court of law. To eliminate additional confusion, there are best practices when gathering employee signatures.

A signature in ink is recognized as the standard for executing documents. However, should in-person not be an option (as many organizations have experienced a significant increase in remote workers), other legally recognized methods of signing are effective. These may include a scanned PDF of a signed document with an original signature or obtaining an electronic signature using software that is legally recognized, such as DocuSign, Adobe, certain payroll services, etc.

All in all, it goes back to showing intent to sign should anyone ever question that an agreement was created.

What Doesn’t Count as a Signature?

What you want to avoid is a question of fraud or whether an individual intended to enter into the agreement. Just typing a name using script font instead of using an original signature is typically not sufficient because it is easier to claim that it was created by someone other than the named party.

Additionally, simply cutting and pasting a picture of a person’s original signature into a document, as is sometimes done on letters, isn’t recommended because it can be more easily used to create counterfeited documents (or alleged to be counterfeit by a party not wanting to be bound by the agreement). Having said that, it is slightly better than typing in script font.

In the end, it is important to protect both parties – the employee and the company – with original or well-documented signatures in the case of disagreements or audits. By taking a little bit of additional time upfront to ensure that you’ve gathered an employee’s signature correctly, you can prevent a significant amount of wasted time and money later down the path.

Special thank you to Emily Smith, JD, General Counsel for Clark Schaefer Hackett, and Sammie Kelly for contributing to this Emerging Issues in HR.

Although maintaining proper recordkeeping practices may not be everyone’s forte, it is a critical piece to help protect both your organization and your employees. But don’t worry, Clark Schaefer Strategic HR are here to help! We can conduct an HR Audit to review your HR policies, procedures, documentation, and systems to identify any areas for improvement or enhancement in your HR function. To learn more, visit our HR Audit page or Request an HR Audit Quote.

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Tips For How To Have Difficult Conversations With Employees

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HR Question:

Each time I take on a new role managing staff, I find myself needing to have difficult conversations with employees about sensitive issues. I’ve had to deal with hygiene issues, someone who wore too much perfume, and even someone who wore an unsightly shirt every single day. What is the best way to deal with these issues and talk with employees about these sensitive topics that are impacting others?

HR Answer:

Most business leaders will tell you that having difficult conversations with employees is one of the most challenging aspects of their leadership position. Whether it’s a team member with a notable hygiene issue or a co-worker with an exceptionally sensitive sense of smell, these interpersonal issues are disruptive to business, and we all wish they would just disappear!

It’s human nature to want to avoid that which we find unpleasant, and most of us would rather have a root canal than have a discussion about another person’s body odor. Great leaders understand that avoidance fosters a culture where issues are allowed to become toxic and spread, potentially impacting the entire team. To truly create change, it is important to be sensitive to the concerns of the individuals involved and handle the difficult conversation with a calm professional demeanor.

Build Trust From the Beginning

The best preparation begins long before the sensitive problem even occurs! Building trusting relationships with your team members early on will make difficult conversations less awkward and more productive.

One way to build trust and establish open lines of communication with your employees is to hold frequent and regularly scheduled one-on-one conversations with them. As an additional benefit, maintaining regular communication with your team members may allow you an opportunity to identify potential areas for concern and proactively address these situations before they escalate into a more serious problem.

How to Prepare for Difficult Conversations with Employees

When a sensitive problem does occur and a tough conversation is warranted, you should address the issue promptly, yet also take the time to fully evaluate the situation and properly prepare for the conversation. Review the details and facts as you are aware of them with the understanding that there is likely more to the story that you will need to uncover in your discussion with the employee.

Also, find the right words to tactfully address the concerns that have been raised and brainstorm potential responses and solutions ahead of the meeting. Approach the conversation from a place of empathy and avoid making assumptions as to the root of the problem.

Suggestions on how to have a respectful and productive discussion:

  1. Make sure the employee knows it is not a disciplinary meeting but rather a coaching conversation.
  2. Meet with the employee in a private location without interruptions where you can explain the problem and how it affects the workplace. Have items such as water and facial tissues available if needed.
  3. Allow the employee to lead the conversation which may result in an apology, learning they were not aware of the situation, or possibly a personal discussion as to why the person is having the issue.
  4. Be open to the possibility that the employee may have a disability or religious or cultural factors that are impacting the situation at hand (hygiene, for example).
  5. If they aren’t readily forthcoming in your conversation, try to understand the root of the issue by gently guiding them and allowing them plenty of time to open up.
  6. Holding the meeting at the end of the day may be best as it will allow the employee to leave immediately afterward.
  7. Be compassionate and focus on the company’s future expectations.
  8. Emotions may run high. If it seems the employee is struggling with the information, allow the employee time to process the information on their own. Offer to have a follow up meeting to continue the discussion once they have had time to think about it.

Don’t Fall Into These Complaint Pitfalls

While it is vital for managers to proactively address these issues, it is also important to do so without jumping to conclusions. It must be noted that it is not always the subject of the complaint that needs to be addressed. Be careful when handling issues to ensure that there is validity to the complaint and that it wasn’t a result of one overly sensitive employee, or worse yet – a bully.

Additionally, don’t allow employees to play what Marlene Chism calls “Power of Attorney” by bringing complaints on behalf of others. Ensure that complaints are brought to you by the party involved and avoid falling into secret conversations and gossip with complainers.

You may also find that negative employees can spread negativity resulting in a detrimental impact on the morale, productivity, and profitability of your team. Sometimes the difficult conversation needs to be with the chronic complainer who may allow their own personality flaws to lead to frequent complaints about their co-workers.

Although having difficult conversations with your employees is not likely to be your favorite part of your job, they can be critical to ensure the productivity, health, and well-being of your team. If you can go into the uncomfortable discussions with a professional and development-focused approach, often you can solve issues while also building trust and respect with your employees.

Thank you to Colleen Mahoney, PHR for contributing to this HR Question of the Week.

 

Communication often seems like a “no-brainer,” until you have a difficult or complex message to deliver. HOW you communicate is often as important as WHAT you communicate when it comes to getting results! Strategic HR has years of experience preparing HR communications for a variety of audiences and topics. Visit our HR Communications page to learn how we can assist you with your HR communications needs.

Clark Schaefer Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping, and Health, Safety & Security

What is the Value of Job Descriptions?

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HR Question:

Do I really need job descriptions for my employees? Are they legally required? We have a small staff and everyone has to be willing to do everything. What is the value of having job descriptions?

HR Answer:

No, job descriptions are not legally required documents, however, they can help your employees (and their supervisors) to understand their responsibilities and how their roles contribute to the mission of your organization. They are also an important part of compliance and, when written well, can help to protect your organization should you face employment law disputes.

To achieve optimal performance, it’s important that your employees understand the scope of their responsibilities. Job descriptions help to define a job by determining and documenting the responsibilities of the position and the physical requirements of the job. This document is not a “how-to” or a procedure outline (which can change frequently), but rather it should capture what individuals are accountable for in their job.

Job descriptions add value because they:

  • Provide a clear picture of the job to applicants applying for the position
  • Help current employees to understand what they are accountable for
  • Serve as a helpful tool for supervisors to coach employees on how to improve performance
  • Help to determine appropriate salary levels for a position based on the expectations, education, and experience requirements for the role
  • Allow individuals to evaluate the physical requirements necessary for the position and what the work environment is like (i.e., Does it require heavy lifting? Is it a “desk job”? Does it involve frequent travel, evenings, or on-call availability, etc.)
  • Allow organizations to determine if an employee can perform the physical functions of a job or if an accommodation could be made for those applying for a job (or coming back from a medical leave or workers’ compensation leave, for example)

Getting Started: What to Include in a Job Description

If you’re beginning the process of creating job descriptions, it can be helpful to conduct a job analysis to understand the necessary tasks and responsibilities for the position and how the job is performed by employees at your organization.

Common components of a job description include:

  • Job Title
  • Reporting Structure: Role the position reports to and role(s) the position supervises, if applicable
  • FLSA Classification
  • Date of Job Description Creation / Revision
  • Job Summary: It is helpful to provide a brief, general overview of the position.
  • Essential Job Duties/Function: Describe the duties that must be performed in the job. Focus on the function of the job rather than the means used to achieve that function. It helps to identify the required outcomes of the job tasks rather than describing the tasks themselves.
  • Physical Demands/Requirements
  • Work Environment
  • Minimum and Preferred Requirements
  • Disclaimer: Explains the job description isn’t designed to list every responsibility and is subject to change.
  • Acknowledgement/Signatures of Incumbent and Supervisor

For additional components to consider, see this step-by-step guide provided by the Society for Human Resource Management (SHRM). We also recommend that you consult your legal counsel for guidance to ensure your job descriptions are appropriate for your organization and legally compliant.

Out of Date Job Descriptions Pose a Risk

It is important for your job descriptions to be kept up to date, otherwise they can potentially cause more harm than good when it comes to providing HR Compliance support. However, when written well, the positive aspects of a job description outweigh the negatives and can provide you with documentation on the job requirements and support actions that you may have taken. Therefore, whenever your organization goes through significant changes or the nature of your work or specific jobs shift, be sure to revisit and revise your job descriptions accordingly.

An Easy Way to Keep Job Descriptions Updated

If finding the time to revise your team’s job descriptions feels like a daunting task in and of itself, consider addressing them one at a time. An easy way to work updates into your routine is to have supervisors take a few minutes during the performance review process to work with each employee to make any necessary updates their job descriptions. Approaching the updates one at a time during your reviews can help to make the process more manageable.

Job descriptions are too important to fall to the bottom of the “wish list.” When done correctly, they serve a multitude of functions. However, we understand busy workloads often relegate job descriptions to a “when time permits” activity. If you are putting off creating or revising your job descriptions due to a lack of time or staff, contact us. Dare we say it’s “in our job description” to help!