Learn how regular auditing of HR electronic record keeping systems is crucial for ensuring compliance with employment laws and being prepared for government investigations. Discover best practices for auditing and updating your HR systems.
Table of Contents
Question
An organization moved to an electronic record keeping system several years ago. The organization has not regularly tested and updated the system since the initial implementation and has avoided investigation of older records. The local state government has announced an increased focus on investigating organizational compliance with employment laws, and an HR director is concerned about the organization’s ability to respond to any inquiries. Which action should the HR director take to ensure that the organization is properly prepared to respond to any such inquiries?
Answer
Establish and use a system for auditing the organization’s record keeping system. Establishing a system for auditing the organization’s record keeping systems is key to ensuring that the system is able to retrieve any records that are related to an inquiry. By auditing the system, HR can identify any records or processes that may not be accessible and correct the situation before any inquiry takes place.
Explanation
To ensure the organization is properly prepared to respond to any employment law compliance inquiries from the local state government, the HR director should establish and use a system for regularly auditing the organization’s electronic record keeping system.
A thorough auditing process is critical because:
- It allows HR to identify any records or processes that may not be easily accessible due to the age of the records or lack of recent updates to the system. This proactive approach gives HR the opportunity to correct any issues before an actual inquiry takes place.
- Regular audits help keep the record keeping system up-to-date and in line with current employment laws and regulations. As laws change over time, an outdated, unaudited system may not meet the latest requirements.
- Auditing provides assurance that the record keeping system is functioning properly and able to accurately and efficiently retrieve any relevant records in the event of an investigation. Quick access to complete records demonstrates the organization’s commitment to compliance.
- Establishing a consistent audit schedule, such as annually or semi-annually, creates a clear procedure for HR to follow and incorporates record keeping maintenance into the department’s regular responsibilities and workflow.
By implementing a robust auditing system for their electronic HR records, the HR director can identify and rectify potential vulnerabilities, ensuring the organization is well-prepared to cooperate with any compliance investigations and provide the necessary documentation to demonstrate adherence to employment laws. This proactive step is crucial for mitigating legal risks and maintaining the organization’s good standing with government agencies.
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