Human Resource (HR) records

Human Resource (HR) records or Personnel Records are records pertaining to employees of an
organization. These records are accumulated with factual and comprehensive information related
to employees in the organization and is kept in a systematic order. Such records are helpful to a
manager in various decision-making areas. Every employer maintains personnel records to
document the employment relationship with employees. Personnel records range from employee
recognition letters to job applications to personnel files. Personnel records provide a paper trail of
an employee’s background, experiences, history, accomplishments, goals, feedback, disciplinary
action (if any), recognition, and promotions, to name just a few personnel records.

Uses of Human Resource Records

HR records are used to preserve information either in soft copy or hard copy. The main uses of
these records in an organization include;
 It helps to supply crucial information to managers regarding the employees.
 To keep an update record of leaves, lockouts, transfers, turnover, etc. of the employees.
 It helps the managers in framing various training and development programmes on the
basis of present scenario.
 It helps the government organizations to gather data in respect to rate of turnover, rate of
absenteeism and other personnel matters.
 Human resource records play a crucial role in administering employee compensation and
benefits programs.
 They document salary histories, bonus eligibility, promotions, leave accrual, and other
relevant data required for accurate compensation calculations.
 It also helps the researchers to carry in- depth study with respect to industrial relations and
goodwill of the firm in the market.
 It helps managers in HR planning, recruitment and monitoring performance management
processes by documenting performance appraisals, feedback, and disciplinary actions
 They facilitate efficient decision-making by providing accurate and up-to-date employee
information
 Human resource records assist in identifying high-potential employees and supporting
talent development initiatives.
 They provide insights into an employee's training, certifications, skills, and career
progression, enabling effective succession planning and talent management.
 They are evidence of compliance with the labour laws
Types of Human Resource Records
Personnel records include:
a) Personal Records - These contain all relevant personal records of an employee. An
employee personnel record is an employers’ saved documentation of the history and status

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 of the entire employment relationship with an individual employee and may contain
documents such as appointment letter, application letter, testimonials, job description, staff
appraisal results, salaries and wages details, application of absence from duty, training
undertaken, leaves etc.
b) Statistical records - These are also called non-employee specific records and can be
organized activity or topic e.g procedural or policy files. They are filed at a central point
or at departmental level in such a way that they are easy to understand and be compared.
They usually contain information that is eternally demanded in different organizations and
may include statistics on wages and salaries, employee deductions, grade of employees,
labour turnover, age, gender etc. non-employee-specific personnel files (organized activity
or topic) e.g. procedural or policy files.
c) Computerized records- These are available in different ways ranging from small desktop
systems that deal with basic personnel records to main frame computers which are
integrated systems to produce information on labour costs, manpower management, and
compensation trends etc.
The information contained in the above records may be classified into:
 Wages and salaries records which contain pay roll records, methods of wages and salaries,
leave records, turnover records and other benefit records.
 Training and development which contains appraisal reports, transfer cases, training
schedule, training methods.
 Health and safety records which include sickness reports, safety provisions, medical
history, insurance reports, etc.
 Service Records are the essential records containing bio-data, residential and family
information, academic qualifications, and marital status, past address and employment
records.
Management of personnel records
Effective and efficient management of personnel records can be achieved by:
 Establishing policies and procedures for managing personnel records in accordance with
the organization’s regulatory framework. It is good management practice for an
organization to understand the regulatory framework it is subject to for personnel records,
and to establish policies and procedures to communicate requirements to relevant action
officers, supervisors and managers.
 Designing or implementing personnel recordkeeping systems so that records with short
retention periods can be destroyed while records with long retention periods are retained
for as long as required. An organization’s regulatory framework includes legislation and
government or industry policies and procedures regarding employee records, and will vary
according to the organization. Elements of the framework may include the privacy and
personal information protection and guidelines issued under the laws of the country, which
establishes principles for the management of private and personal information within
personnel records

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  Designing or implementing personnel recordkeeping systems so that sensitive records can
be kept secure and protected to meet privacy management obligations. Records created to
support the management of employees often contain information of a sensitive or personal
nature. Organizations should ensure that such records are managed securely and that access
to the records is restricted to authorized users e.g. Access levels and security arrangements
should be documented. Controlled access should apply for as long as the records are
required to be retained, and records should be destroyed promptly when minimum retention
periods have expired.
 Creating and maintaining adequate summary records of employees. Creating adequate
summary records of employment and service can make the management of personnel
records more efficient and effective. Summary records are records that summarize the
content of other records. Many organizations have kept summary records in the past, such
as staff service cards. Increasingly, organizations are using human resource management
databases or other automated systems that can provide a similar summary record of
employment and service history.
Computerized Human Resource Records
The type of HR data collected, where the data are stored, how the data are used, and the type of
system used has changed over time, but the need to collect information relating to hiring,
promoting, and firing employees has not changed. These records were traditionally kept on paper,
creating issues with storage, the ability to locate records and longevity. However, changing over
to HR technology has helped resolve some of these issues. HR technology is increasingly being
used by small, medium, and large employers to meet the needs of its stakeholders. Among the
technologies used to keep HR records is the computerized system which involves keeping track of
all employee records in a computer system. The advantages and disadvantages of this system are
as below;
Advantages of computerized HR records
a) Space - Keeping paper records takes up a lot of space. The more employees a company has, the
more space it needs to store all of the records, especially if the company keeps records for past
employees. A computerized system allows a company to transfer paper documents into digital
form, which only takes up the space for the computer. Most computers have plenty of hard drive
space to store all of the required employee records. A company is then free to use the former
storage space for the paper records for another office or some other type of storage.
b) Accessibility – Paper records, no matter how well they are filed, can take several minutes to
search through. For any particular information, the file for the correct employee should be found,
which is usually easy as long as the files are kept in good alphabetical order, but can still take time
depending on how many filing cabinets you must walk among to get to it. After that you still must
locate the particular document you need, which can take time, especially if the employee’s file is
thick. However, if the personnel system is stored on a computer, it is a matter of seconds to search
for the information you are looking for through the computer’s search features. Employers can
view files from multiple computers, and even offices located in multiple cities, as well.

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c) Time – In addition to saving time when searching for specific documents within paper files,
employers can save time in other ways. If an employer requires someone’s paper file due to
disciplinary action or for a performance review, she would have to wait for someone to locate the
file and deliver it to her. When the system is computerized, she can simply look up the information
on her computer without having to wait. Filing away documents is also done more quickly, saving
time on filing.
d) Statistics –When personnel records are computerized, an employer can instruct the computer to
gather specific statistics, such as output levels, absences or turnover rates, to find ways to improve
the company. These statistics can give an employer a wealth of important information. If upper
management requests these statistics, the computer makes it easy to compile the information and
can quickly create a graph to better illustrate the statistics.
e) Identifying trends –Some employees exhibit trends in their work habits that can clue an
employer in on potential issues. For example, an employee may have a habit of calling in sick once
every couple of weeks on the exact same day of the week. Some employees choose Monday or
Friday to extend a weekend, while others choose a more discreet route using a day in the middle
of the week. A computerized personnel system can help an employer identify trends such as this
more easily than relying on paper records and memory.
Disadvantages of a computerized Human Resource record System
a) Access control – When an organization collects personal data about its employees in a computer,
certain security risks may arise. An organization spends funds to keep employee private
information secure against internal and external threats. One disadvantage of a computerized
system is that an organization must collect information about who accesses employee private
information. This data requires follow up with an audit process, which could result in disciplining
or prosecuting an employee who accesses employee data without authorization or without an
official purpose.
b) Specialized Knowledge – The need for data control is another potential disadvantage of a
computerized system. This data control extends beyond unauthorized access of employee private
information. An organization using this system must employ its own set of technical staff to
program, troubleshoot, update and support the system. While the system may help an organization
reduce the cost of HR personnel, it could increase the requirements for technical staff with
knowledge specific to the HRMS solution.
c) Data Entry Errors – A computer system is only as good as its human programmers and end
users. People with high-level access, such as people who update an HR file, may enter the wrong
information deliberately or in error. If data is improperly updated, changed or lost, an organization
can face government fines and other costs associated with inaccurate HR records.
d) Loss of information – A lot of information can be lost if the computer is stolen or the computer
system collapses. A computer system cannot therefore operate without a manual system as a back
up to mitigate against such problems.

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Human Resource Information System (HRIS)
Human resource information system (HRIS) or human resource management system (HRMS), is
basically an intersection of human resources and information technology through HR software.
This allows HR activities and processes to occur electronically. HRIS may be viewed as a way,
through software, for businesses big and small to take care of a number of activities, including
those related to human resources, accounting, management, and payroll In most situations, a HRIS
will also lead to increases in efficiency when it comes to making decisions in HR. The decisions
made should also increase in quality and as a result, the productivity of both employees and
manages should increase and become more effective.
An effective HRIS provides information on just about anything the company needs to track and
analyze about employees, former employees, and applicants. HRIS is made up of a number of
subsystems, and data can be stored, maintained, and generated from the system. These data can be
used to create information that will serve different purposes for many different stakeholders.
The key functions of an HRIS are:
 Creating, analysis and maintaining employee records e.g. applications, payroll, benefits
administration etc.
 Ensuring legal compliance
 Enabling managers to forecast and plan future HR requirements
 Providing information to managers and HR so they can manage knowledge and manage
talent (career and succession planning)
 Providing information to enable HR plans and activities to align more effectively with the
organization’s strategic plan
 Assisting managers with decision making providing relevant data so they can make more
effective and informed decisions
Elements (subsystems) of HRIS
Many organizations have gone beyond the traditional functions and developed human resource
management information systems, which support recruitment, selection, hiring, job placement,
performance appraisals, employee benefit analysis, health, safety and security .A HRIS have
enabled enterprises to automate many aspects of human resource management which operate as
modules / subsystems. Currently Human Resource Management Systems have the following key
elements:
 Organization – The Organization element is organization structure such as company,
location, department, designations, employee group and organization change such as
resignation, termination, transfer, promotion.
 Payroll – The payroll element automates the pay process gathering data on employee time
and attendance, calculating various deductions and taxes, and generating periodic pay
cheques and employee tax reports. Data is generally fed from the human resources and

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 time keeping modules to calculate automatic deposit and manual cheque writing
capabilities. This element can encompass all employee-related transactions as well as
integrate with existing financial management systems.
 Time and Attendance – The time and Attendance Element automates time tracking related
processes and enhances the organization’s performance eliminating paperwork and manual
processes associated with time and attendance needs. The sophisticated module helps to
efficiently organize labor data, improve the workforce management and minimize errors
in enforcement of company’s attendance policies.
 Benefits Administration – The benefits administration element provides a system for
organizations to administer and track employee participation in benefits programs. These
typically encompass insurance, compensation, profit sharing and retirement.
 HR Management – The HR management element is a component covering many other HR
aspects from application to retirement. The system records basic demographic and address
data, selection, training and development, capabilities and skills management
,compensation planning records and other related activities. Leading edge systems provide
the ability to “read” applications and enter relevant data to applicable database fields, notify
employers and provide position management and position control not in use. Human
resource management function involves the recruitment, placement, evaluation,
compensation and development of the employees of an organization.
 Recruiting - Online recruiting has become one of the primary methods employed HR
departments to garner potential candidates for available positions within an organization.
Talent Management systems typically encompass:
- Analyzing personnel usage within an organization
- Identifying potential applicants
- Recruiting through company-facing listings
- Recruiting through online recruiting sites or publications that market to both recruiters and
applicants.
The significant cost incurred in maintaining an organized recruitment effort, cross-posting within
and across general or industry-specific job boards and maintaining a competitive exposure of
availabilities has given rise to the development of a dedicated Applicant Tracking System, or
‘ATS’, element.
 Training – The training element provides a system for organizations to administer and track
employee training and development efforts. The system, normally called a Learning
Management System if a standalone product, allows HR to track education, qualifications
and skills of the employees, as well as outlining what training courses, books, CDs, web
based learning or materials are available to develop which skills. Courses can then be
offered in date specific sessions, with delegates and training resources being mapped and
managed within the same system. Sophisticated LMS allow managers to approve training,
budgets and calendars alongside performance management and appraisal metrics.
 Employee Self-Service – The Employee Self-Service element allows employees to query
HR related data and perform some HR transactions over the system. Employees may query
their attendance record from the system without asking the information from HR personnel.

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 The element also lets supervisors approve overtime requests from their subordinates
through the system without overloading the task on HR department.
Reports – The Reports Element provides customized reporting according to employee’s individual
needs. Any number of reports can be defined selecting from a range of search criteria and report
fields. Report definitions can be saved to avoid repeating this task. Once the report definition is
saved the report can be generated providing the required criteria data.

Emerging Issues in HR Records

a) E-HRM – E HRM is the (planning, implementation) application of information technology
for both networking and supporting at least two individual or collective actors in their
shared performing of HR activities. E-HRM is defined as a network-based structure built
on partnerships and typically mediated information technologies to help the organization
acquire, develop, and deploy intellectual capital. It is in essence the devolution of HR
functions to management and employees.
There are three tiers of E-HRM which are; Operational, Relational and Transformational.
- Operational E-HRM is concerned with administrative functions e.g. payroll and employee
personal data.
- Relational E-HRM is concerned with supporting business processes means of training,
recruitment, performance management and so forth.
- Transformational E-HRM is concerned with strategic HR activities such as knowledge
management, strategic re-orientation.
b) Employee Self-Service – Employee self-service (ESS) systems enable employees to access
and manage their personal information directly, without having to go through their HR
departments or their managers. ESS systems are set up so that employees can sign onto
their company system via the Internet and be immediately authenticated and verified HR
departments can set up employee access to HR services. Access can also be provided
through interactive voice response (IVR). An interactive voice response (IVR) system is a
telephone technology in which a touch-tone phone is used to interact with a database to
acquire information from it or enter data into it. For example, employees can call in to
report their attendance entering a specific code.
c) Web-Based Technology – For the most part, the HR department continues to be the owner
and custodian of HR information but others have begun to recognize the value of this
information to the business. The reports that HR is able to produce have become more
sophisticated. At this point, the majority of systems are still not Web-based, but some
leading-edge organizations have embraced this technology. The technology of the future
will be about speedy access to accurate current information, and the ability to access this
information via multiple systems will give organizations a strategic edge. HR is expected
to relinquish its role as sole owner of HR information, so that managers and employees can
use this information to solve their own problems using Web-based systems.