As a company, you must keep accurate and current employee records. Access to the appropriate data can help you keep track of crucial performance and productivity measurements.

A dependable employee record management system also helps you comply with the recordkeeping requirements of employment legislation, such as the Americans with Disabilities Act (ADA), the Fair Labor Standards Act (FLSA), and the Family Medical Leave Act (FLMA). Utilizing employee record management software is an efficient approach to preserving accurate and secure information.

This article will examine the employee record management procedure and analyze how Folderit’s DMS is the best option for HR file management. In addition, we will provide some recommendations on what to look for in employee record management software to assist you in locating the ideal solution for your organization.

What is Employee Record Management?

Management of employee records is an essential part of human capital management. Simply said, it is the process of storing, filing, and organizing employee data collected during the employee lifecycle. This enables businesses to establish regulated access to sensitive data and the proper storage of essential data. To ensure compliance with a variety of salary and employment rules, it also includes the secure and timely deletion of old employee data.

Historically, employee records were kept manually. This system was inefficient, time-consuming, and complicated. Not to mention the amount of storage space necessary.

The majority of employee information is now maintained digitally. The usage of an employee database to maintain a centralized record of all pertinent information makes information much easier to manage and access. Nonetheless, effective employee data management remains one of the most difficult aspects of HR administration. This is due to the fact that you must strike a balance between serving your business’s needs and regulatory compliance.

Implementing a complete employee record management system, often known as employee record management software, is an excellent method for achieving this goal.

What exactly is Employee Record Management Software?

Employee record management software is a digital employee document management system that simplifies the storage, retrieval, and administration of employee information.

Imagine an electronic filing application that allows you to record and track all of your employee’s personal and professional information utilizing streamlined procedures to improve the efficiency of your firm. Instead of searching for an employee’s paper file in a mammoth filing cabinet, you simply view their profile from a user-friendly platform and have access to all of their information.

Typically, an employee’s personal profile comprises contact information, hiring papers, attendance and leave records, pay information, medical history, data related to expense management, overall performance, and training requirements.

An efficient employee record management software not only expedites the administration process but also protects sensitive information and reduces the likelihood of business risk. In addition, having all data securely consolidated enables you to access the appropriate data when you need it, enabling your leadership team and allowing your employees to operate more efficiently and effectively.

Employee Record Management Procedure

Before selecting the best employee record management software for your needs, you should devise a strategy to assist you to deploy your system as efficiently as possible.

To assist you, we have compiled a list of the critical phases you must include in your employee record management process:

Step 1: 

Create a map of your documents. Make a list of all the human resource documentation that you have gathered for each employee.

Step 2:

Determine your access requirements. Determine who will require access to this information. Every employee? Only your HR department? And how frequently will they require access to it?

Step 3: 

Determine your needs and objectives. Determine all of your documents’ expiration dates and triggers. 

Step 4: 

Determine security parameters. What level of security do various document kinds require? Also, what data should be discarded after it is no longer useful?

Step 5: 

Create a strategy for storage and archiving. Create your storage, access, workflow, and archiving strategies.

Step 6: 

Put in place employee record management software. You will be able to automate document generation, access, and workflows as a result of this.

The Advantages of Employing Employee Record Management Software


One of the most significant advantages of employing an employee record management system is that it assists you in remaining compliant with state and federal legislation. This covers timekeeping and recordkeeping regulations. It also includes a number of federal rules that require you to keep employee records for a certain period of time following termination. 

Legal Defense

In addition to legal requirements, you also need access to employee documents for the purpose of regulatory audits and inquiries, employee complaints, and lawsuits.

Privacy and security

Another advantage of employee record management software is that it protects your data and helps you adhere to security and privacy regulations. This includes maintaining the confidentiality of employee medical information, information on disabilities, Social Security numbers, and other personal information.

Data Flow and Administrative Effectiveness

Employee record management software streamlines document access and sharing, helping you create more efficient workflows. This helps you stay efficient and organized. It also makes sure the right documents are available to the right people whenever needed.

Folderit as your Employee Record Management Solution

An efficient document management system is the way to go when it comes to employee record management software. Online employee record management allows you to manage your time much more efficiently, enhancing your company’s total productivity. 

Folderit’s document management system provides tools for handling all of your recordkeeping operations in a unified manner. That is, you may keep all of your employee records on a secure platform and view them from any device.

Folderit also offers the following advantages:

  • All employee records are stored in individual digital folders.
  • Organize your company’s taxes and invoicing in one location.
  • Create document approval workflows.
  • Configure the document permissions for your management and staff.
  • Hide crucial papers so that only authorized individuals can see them.
  • Secure data security is provided by robust encryption technology and user-specific access.

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