Managing employees is time consuming, and is becoming increasingly complicated. In the UK, and many other countries, the rate at which new legislation is being introduced makes it difficult for business owners to stay within the law, especially when it comes to maintaining details about their employees.

Unfortunately, the consequences of failing to comply with the regulations can be quite serious. Take a look at this example, to see what we mean.

An example of where poor record keeping can lead

Most companies are very careful about safety. They know that keeping their employees and the public safe is of vital importance.

Failure to have good health and safety standards in place, and enforce them can lead to work related accidents. When that happens, people can be injured or even die. If a death occurs or the injuries are serious, the company is likely to be prosecuted, and end up with a huge legal bill, as well as a ruined reputation.

As a result, health and safety is something that most business owners take very seriously. The majority of firms assess the risks in their workplace and train their staff to minimise those risks. They have a robust health and safety training routine in place.

Unfortunately, many companies fall at the last hurdle. They do the necessary training, but do not keep proper records of who has been trained, and when.

Therefore, when an accident occurs they cannot easily prove that they have actually provided the necessary training. As a result, they can be seen by the courts as negligent. In cases where the company cannot prove that they have provided the right health and safety instruction, the fines levied against them are huge.

Some firms end up going out of business because they do not have enough funds available to pay their fine. The sad fact is that not having proper record keeping processes in place can have a very negative impact on a firm.

How keeping good employee records helps

Keeping good employee records helps to create checks and balances that ensure that the company is doing what they need to. If you want more examples of why you should be keeping good data about your employees, this guide from ACAS is ideal. It explains, in simple terms, why accurate employee records are so vital, and tells you what information you need to store, and for how long. You can read it, in full, by clicking this link.

Getting your employee records in order

If you do not already keep good employee records, you really need to start doing so, as soon as possible. A good approach could be to use a tailored software package offered by the likes of HR software company CascadeHR.

Buying the right HR software for your business

Every business is different, so a system that is right for a multi-national may be too unwieldy for a small business. For this reason, before you go out and buy your HR software, you need to sit down and identify which employee details your company actually needs to record. That way you will not end up buying a package that is too complex or end up paying more than you absolutely have to.