Documentation and Record Retention are certainly not on the top of the exciting and compelling list, in comparison with some of the other topics on Human Resources. Both, however, are extremely important and fundamental to sound management of your employees.

Proper documentation of facts is the foundation for employee-related disciplinary action and development.

Documentation of Events
Managers and supervisors should get into the habit of documenting employee's performance. Both problems and positive contributions made by employees should be documented.

Problem Documentation
When you have an employee performance issue, DOCUMENT the problem. But, how do you document? Simply, briefly, list the facts of the situation. Write down who was involved, what happened, and where and when did it happen. If an employee is absent, write down the date(s) of the absence(s). When she tells you why she was absent, write down it down. When you have a discussion, write down what was said by both parties.

What you do not want is opinion. This is where documentation gets mucked-up. It is not necessary for you to speculate on what you think happened, or what you think the employee thought. Just stick to the facts.

For example:
"I spoke to Jack Employee today, March 11, 1999, regarding his attendance. He has been absent three days within the last two weeks, March 3, 5, and 10. I advised him of the problems his absence causes in the department and the need for him to be to work. He indicated to me that he has had car trouble and that had caused the absences. He complained that I was "picking on him," saying others did not get in trouble when they were late and I was making a big deal out of nothing. I told him that it is his responsibility to come to work when he is scheduled and I again reiterated the impact his poor attendance has on the work process and the driver schedule. I also said that the issue we are dealing with was his poor attendance, the behavior of other employees will not be discussed. Finally, I told him that if his poor attendance continues, further disciplinary action, including termination, may occur. He said he would work to improve his attendance.
Signed, Joe Supervisor
Date"

Positive Documentation
Don't limit your documentation to disciplinary related events. Remember to document events where an employee's actions were positive and contributed to the company.

For example:
"On March 3,5 and 10, 1999, Sam Staff was able to complete his is run early, allowing us to assigned him additional runs. This extra effort allowed customers to be serviced timely and prevented the work from falling behind. In addition, this work was completed with minimal overtime. On March 11, 1999, I spoke to Sam and thanked him for his extra effort.
Signed, Joe Supervisor
Date "

Documentation is a simple task, that should not take a great deal of time. However, where employers keep these documents is a question. Therefore, I will address where you should keep these documents later in this article.

Record Retention
What information should employers keep? Where do they keep it? And how long do they keep it? Questions that many employers ask. What most employers do is throw everything in one file with an employee's name on it and call it the "personnel file." Unfortunately, there probably is information in this file that could get them in trouble. For example, does this file have the employee's pre-employment physical in it? The presence of the physical in the employee file is a violation of the Americans with Disabilities Act. Does the file have garnishment information in it? If so, this could become a privacy issue for an employee if supervisors making promotion decisions see the garnishment.

I recommend keeping employee information in three separate color coded, clearly marked, files. In addition to these three files, supervisors should maintain a separate supervisory file.

The information should then be retained in these files as follows:

Personnel File (employment related documents)
Application/resume and supporting documentation provided by the applicant
Assessment test results for validated, job related assessments
Performance evaluations
Payroll changes
Rate changes
Department changes
Salary history
Disciplinary documents

Medical File
All health insurance enrollment
Life insurance enrollment
Beneficiary documentation
Any medically related documentation, i.e. doctors notes
Workers' compensation documentation
STD and LTD documentation
Drug test results
Post offer physical results

Miscellaneous (or payroll) File
Authorization for automatic deposit
W-4's
Address
Telephone
401(k) or pension enrollment and related documentation
125 plan enrollment
I-9 & related documentation
Garnishment information and documentation
Employment verifications
Reference checks for new hires

The most important file is the Personnel File. This is the file that should be used to make all employment decisions. The other two files are simply for record retention purposes, and access to these files should be limited. Supervisors only should have access to the personnel file.

These files can be kept in separate locations or together in a hanging file. The key, however, is to control access to the files.

In Michigan, under the Bullard-Plawecki Employee Right to Know Act employees have the "right to know" what information is being retained in their Personnel File which means they have full access to view their file. When an employee requests to view his or her file, a supervisor, manager, or H.R. representative should be present. The employee also has the right to request a full or partial copy of any aspect of the file. Employers should require any requests for copies in writing with a signature and a date. When the copy is provided, employers should note that the copies were given to the employee and the date they were given. Employers are allowed to charge the employee the cost of the copies.

Supervisory Files
Back to the documentation we discussed above. Where should you keep it. The Personnel File? Do you want employees to see these documents, maybe not. The Bullard-Plawicki Act allows employers to retain this documentation through the use of Supervisory Files. This file provides supervisors the opportunity to retain documentation of events without employees' access to this information. The caveat is, and there is always a caveat, this information may only be retained for six months, unless implemented into a formal document such as disciplinary warning, complementary letters, or performance appraisals and then placed in the Personnel File.

I can not stress enough the importance of good documentation and record keeping. It is fundamentals of management, and without these fundamentals, the many other aspects of human resource management lose their effectiveness.