The employment file and its role in Human Resources

The main tasks of the Human Resources department, according to the European University, are talent management. To achieve this, those in charge of this area turn to various tools that allow them to better perform their tasks. In this blog, we tell you about the personnel file, one of those tools: the employee file.

The employee file, also known as the employee record or personnel file, is a collection of documents and records related to a worker's professional life in an organization. This file is crucial for both human resources management and the employee.

1. Importance of the employee file

The role of this compendium of documents in companies has a wide range of functions, ranging from knowing the collaborator's professional career to having the necessary data for their evaluation. However, if we had to summarize its importance in three points, we would give the following:

• Historical record: It offers a complete history of the employee from their entry to their exit from the company.

• Decision making: It helps managers and the HR department make decisions regarding promotions, salary increases, and training, among others.

• Legal compliance: Companies are required to maintain certain employee documents for legal and regulatory reasons.

2. Data and documents that cannot be missing

Among the documents that companies must have in the files of each collaborator, we can find the following.

• Personal data: Name, address, date of birth, social security number or equivalent, emergency contact information, among others.

• Employment history: Contracts, agreements, job descriptions, performance evaluations, promotion records, or changes of position.

• Compensation: Information about salary, bonuses, raises, and other benefits.

• Education and training: Records of courses taken, certifications obtained, and other training programs.

• Legal documentation: Contracts, non-disclosure agreements, work permits (for foreign employees), among others.

• Medical records: Occupational medical exams, records related to work accidents or illnesses (this information is usually highly confidential and access should be restricted).

• Disciplinary records: Information about sanctions, warnings, or any other type of disciplinary action.

• Termination of employment: Documents related to the termination of employment, whether due to resignation, dismissal, retirement, among others.

However, it is important to mention that some of these depend on the size and needs of the company.

3. The importance of confidentiality

Given the sensitive nature of the information in the employee file, it is essential to guarantee its confidentiality. Only authorized personnel, such as the HR team or managers with a valid reason, should have access to these files, because if the information contained in the personnel file is handled inappropriately, it can be used to discriminate or make biased decisions against the employee, which can have serious ethical and legal repercussions.

4. Its near future: digitalization

With technological advancement, many companies are migrating from paper employee files to digital systems like Sora®. This facilitates the management, search, and updating of information, in addition to offering higher levels of security and control over the data.

Furthermore, Sora® provides companies with various benefits such as managing employee files digitally, cloud document storage to access them from anywhere at any time, remote signing of contracts and pay stubs, as well as better handling of employee documents and document signature tracking. All of this allows for the automation of manual processes to thus invest time in high-value activities.

Are you ready to discover more about Sora? Don't miss the opportunity to take your Human Resources management to the next level. Schedule your demo with Sora right now!