Employee record keeping – The need and importance of employee recordkeeping in personnel management

Need and importance of employee record keeping

Employee record keeping – The need and importance of employee recordkeeping in personnel management
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Effective system of maintaining employee records has its own value and importance in business organizations. It helps a business management in various ways. This article discusses the need and importance of employee recordkeeping system in a Personnel Management.

There are various important functions that a personnel management needs to undertake in a business organization. One of them is keeping and maintaining the records of the employees accurately with updated information.

The records of the employees need to be preserved in such a way as to save from being lost, damaged or destroyed. It is thus a successful retrieval of the records of the employees as and when needed is an indicative of efficient performance of personnel management.

It is the responsibility of personnel department to keep the orderly and regularly updated records of the employees. They must be arranged in such a manner that the retrieval process may go in a smooth manner.

It is better to keep the records in filing cabinets in a sequential order based on the employee numbers or departments. Folder with dividers should be maintained so that the information pertaining to the details, such as, educational qualifications, skills, special interests, results of tests and interviews, job performance, aptitudes, leaves, promotions and punishments may be readily available at any point of time.

Whenever it is needed, it is important to provide the top management the most recent information, relating to the employees or with more recent information than was previously available. In this way, the up-to-date information is the basic requirement of efficient record keeping system that a personnel management needs to undertake and manage accordingly.

The need of an efficient and updated record keeping system emerges in a business organization when the employees are to be promoted on the basis of their educational qualifications, latest achievements, and the related information of their performance processed through performance appraisal records.

Since the related data or the information is scrutinized for the due process of promotion, the updated records are of a great significance to be used as reference.

Besides, the need for maintaining updated information also arises when an employee applies for his vacation. It is to be verified whether the employee is entitled for the availment of his leave or not. Also, some employees are such who are desirous of professional development and in pursuit of it, not only they try to improve their skills, educational level, knowledge and the experience, but also produce the desired results effectively and efficiently. Since their latest achievements need to be preserved in the records to promote them accordingly, hence there is a need of regularly updated record keeping system.

Aside from these, there might be urgent needs when the records are to be used as references in case the employees need to be deployed, transferred or demoted. It is for all the above reasons and many more that call for the requirement of a good record keeping system in a personnel management, the need and importance of employee record keeping exists always.

Personnel management at its best is duly recognized and appreciated due to its efficient performance in what it undertakes and manages including maintaining the detailed and updated personal information of the employees through its well-organized record keeping system.

Written by:

K. A. Fareed (Fareed Siddiqui)

Writer, Trainer, Author, Software Developer

BBA, MBA-Finance, MPhil-Financial Management, (PhD-Management)

MA-English, MPhil-English

Post Graduate Diploma in Computer Applications and Programming

Level 1 - Leadership and Management ILM – UK

Pursuing CMA-USA

Individual Member of Institute of Management Consultants of India


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