If the date of August 23, 2004 still haunts you, take these 10 steps to gain compliance with the new

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If the date of August 23, 2004 still haunts you, take these 10 steps to gain compliance with the new

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Measured Success! Raising the Bar in HR Issue VIII, December 2005 NEXT ISSUE: MARCH 2006 INSIDE THIS ISSUE ~ RECORD RETENTION ~ MEASURING SUCCESS! Human Capital ROI ~ DID YOU KNOW? EEOC Definition of an “Internet Applicant” RECORD RETENTIONWe are nearing the end of another year – it’s time to clear out the old to make way for the new! But what can we get rid of and what do we need to keep? Unfortunately, the rule of thumb used in personal life (if you haven’t worn it in a year get rid of it) doesn’t always apply in human resources. Take a few steps toward a more organized new year. STEP 1: Find out if your company has a record retention policy. If it does, how does the policy apply to HR information? Does the policy comply with the various employment laws? STEP 2: Implement a record retention policy or revise an existing one to ensure clarity, consistency, and ease of administration. Consider technology issues, the need for confidential document destruction, and the laws that would apply to the particular document in question. STEP 3: Implement the record retention policy by reviewing files, destroy obsolete files, and reorganize files that must be maintained. For a quick look at federal record retention requirements, refer to the grid below. For more complete information contact your employment law counsel or visit http://www.shrm.org/hrresources/whitepapers_published/CMS_000270.asp RETENTION RECORDS TO BE RETAINED ...

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Measured Success! Raising the Bar in HR

Issue VIII, December 2005

NEXT ISSUE: MARCH 2006

INSIDE THIS ISSUE

~ RECORD RETENTION

~ MEASURING SUCCESS! Human Capital ROI

~ DID YOU KNOW? EEOC Definition of an “Internet Applicant”

RECORD RETENTION

We are nearing the end of another year – it’s time to clear out the old to make way for the

new! But what can we get rid of and what do we need to keep? Unfortunately, the rule of

thumb used in personal life (if you haven’t worn it in a year get rid of it) doesn’t always

apply in human resources. Take a few steps toward a more organized new year.

STEP 1

: Find out if your company has a record retention policy. If it does, how does

the policy apply to HR information? Does the policy comply with the various

employment laws?

STEP 2

: Implement a record retention policy or revise an existing one to ensure

clarity, consistency, and ease of administration. Consider technology issues, the

need for confidential document destruction, and the laws that would apply to the

particular document in question.

STEP 3

: Implement the record retention policy by reviewing files, destroy obsolete

files, and reorganize files that must be maintained.

For a quick look at federal record retention requirements, refer to the grid below. For more

complete information contact your employment law counsel or visit

http://www.shrm.org/hrresources/whitepapers_published/CMS_000270.asp

RECORDS TO BE RETAINED

RETENTION

PERIOD

APPLICABLE STATUTE(S)

Applications for employment

* and other

personnel action records

, i.e. regarding

promotions, layoff, recall, training, etc.

1 year

ADEA

ADA

Title VII

Personnel action records

, i.e., requests for

reasonable accommodation, results of physical

exams, job postings, applications, tests, etc.

2 years

Rehabilitation Act

Executive Order 11246

VEVRAA

(Applies to federal

government contractors)

Payroll records

showing employees’ names,

addresses, dates of birth, occupations, rate of

pay, and weekly compensation

3 years

ADEA

Fair Labor Standards Act

Equal Pay Act

Polygraph test results

and reasons for

administering

3 years

Employee Polygraph

Protection Act

Basic

employee data

, dates of leave taken,

copies of notices of the need for leave, premium

payments during leave

3 years

FMLA

Records containing basic employee data and

compensation records

including amounts and

dates of actual payment, etc.

3 years from the

end of the

contract

Davis-Bacon

Service Contract Act

Walsh-Healy Public

Contracts

(Applies to federal

government contractors)

I-9

form

3 years after date

of hire or one year

after date of

termination,

whichever is later

Immigration Reform and

Control Act of 1986

Basic employee data, compensation records, and

tax records

4 years from date

tax is due or paid

FICA, FUTA Federal Income

Tax Withholding

Form 300, Form 301, Form 301A

5 years

OSHA

ERISA

-related records used to develop all

required plan descriptions or reports, as well as

other materials needed to certify information

6 years

ERISA

Identify of chemicals recorded in

MSDS sheets

medical or exposure records.

30 years

OSHA

Records concerning the

health status

of an

employee which is made or maintained by a

physician, nurse, or other health care

professional/technician

Employee’s tenure

+ 30 years

OSHA

* Where a charge or lawsuit is filed, all relevant records must be kept until final disposition

of the charge or the lawsuit.

MEASURING SUCCESS! Human Capital ROI

Measure the return-on-investment ratio for employees and analyze the causes of

positive/negative ROI. Use this analysis as an opportunity to optimize investment with HR

practices such as recruitment, motivation, training, and development. Also evaluate if HR

practices are having a causal relationship in positive changes to improving metric.

Revenue - (Operating Expense - [Compensation Cost + Benefit Cost*])

Divided by

(Compensation Costs + Benefits Cost)

*Exclude payments for time not worked

DID YOU KNOW? “Internet Applicant”

Executive Order 11246 requires covered entities to "maintain and have available for

inspection records or other information which will disclose the impact which its tests and

other selection procedures have upon employment opportunities of persons by identifiable

race, sex, or ethnic group. . . ." 29 C.F.R. 1607.4A. One such procedure is the hiring

process, which requires contractors to track the race and gender of those individuals

applying for employment. The definition of an applicant was recently updated to reflect the

practice of receiving applications through electronic media.

As published in the

Federal Register

, the regulation says that “Internet Applicant” means

any individual satisfying all four of these criteria:

•

The individual submits an expression of interest in employment through the

Internet or related electronic data technologies.

•

The contractor considers the individual for employment in a particular position.

•

The individual's expression of interest indicates the individual possesses the basic

qualifications for the position.

•

The individual at no point in the contractor's selection process prior to receiving

an offer of employment from the contractor removes himself or herself from

further consideration or otherwise indicates that he or she is no longer interested

in the position.

The regulation says that the phrase “submits an expression of interest in employment

through the Internet or related electronic data technologies” includes “all expressions of

interest, regardless of the means or manner in which the expression of interest is made, if

the contractor considers expressions of interest made through the Internet or related

electronic data technologies in the recruiting or selection processes for that particular

position.”

THE RESEARCH

U.S. Equal Employment Opportunity Commission,

www.eeoc.gov

; HR Magazine, SHRM;

www.shrm.org

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HR CONSULTANTS, INC.

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www.hrconsults.com

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