Module 3: Recording, analysing and using HR information 3RAI
Kathrina Yarwood
Activity 1.1, 1.2, 2.1, 2.2
The storing of data also known as data management is important for any business or organisation. There are several reasons why an organisation would need to store HR data. Any data collected would be invaluable for various reasons including but not limited to compliance, reporting, business planning and budget setting. An organisation or business can collect any number of different types of data including absenteeism information, equality and diversity questionnaires, in respect to compliance and reporting data collected would include absences, retention information and skill set information. Budget setting information would include workforce numbers, revenues and potential business opportunities. One main HR priority is to track and store existing employee data. For an organisation to move forward, to be able to report on staff accurately and if needed to validate the value of teams or certain job roles, Human resources must have a good understanding of the data and also have a suitable system to secure the data.
Management at the highest level require data collected by HR departments as the data would be essential to their planning the future direction of the organisation and make them aware of any number of significant issues such as employee retention and enable them to pursue a solution. HMRC can request copies of records collected by HR to ensure that employees are being treated fairly and are contributing the correct taxes and National Insurance contributions. They can request other information such as working hours and if they are being paid the National Minimum Wage or to prevent exploitation. HR data can also be used to record employee performance and hence if the employee is dismissed and seeks compensation they can be used as a point of reference and protect the organisation against a tribunal case. HR data can also be essential for any new managers or HR department changes, employees and managers can refer to the data for decision making purposes and to understand the culture of the organisation and any trends.
Organisations will retain information such as attendances; this data is essential to measure daily working hours and quota absences. It enables HR and management to effectively manage regular absentees and address any issues that the employee may have. HR will record information such as Employee records; home addresses, contact numbers and people to contact in time of an emergency, this information is helpful should the employee not come to work without notice. The information can also be used for CRB checks and verifying an employee’s qualifications.
Ways of storing data can include personnel files, either electronically (hard disks, PC, USB sticks, Servers, databases, spreadsheets, dvd and internet and intranet sites such as salesforce.com) or paper hardcopies.
The advantages of storing HR data electronically are; that all information can be kept up to date easily, it is easier to access and information can be sent and received rapidly. Sizable amounts of data can be stored and thus not take up valuable office space. Electronic data can also be encrypted and password protected therefore making it secure. The disadvantages would be if organisations servers are not functioning properly then information could be lost and without a hardcopy it could be permanently lost and need to be redone. Electronic storage can be expensive to buy and maintain.
The advantages of keeping data in paper format would be that information required for tribunals would be readily available in paper format for supporting evidence. The disadvantages of paper storing are; it is time consuming to file and requires manpower to find documents which are not recent. There could be duplicate copies if not filed correctly and can take up a lot of room. Paper based data could also be destroyed easily if the building housing it has damages such as fire, paper storage can itself be a fire hazard.
We now come to legislation relating to the recording, storing and accessibility of HR data. One such act would be The Data Protection Act. The act contains eight “Data Protection Principles”. These specify that personal data must be:
1. Processed fairly and lawfully.
2. Obtained for specified and lawful purposes.
3. Adequate, relevant and not excessive.
4. Accurate and up to date.
5. Not kept any longer than necessary.
6. Processed in accordance with the “data subject’s” (the individual’s) rights.
7. Securely kept.
8. Not transferred to any other country without adequate protection in situ.
These elements not only ensure that any recorded data is done so within employees’ rights but is not exploited or used inappropriately.
The Freedom of Information act is also used when storing HR data, the act encourages organisations to be open and transparent, it allows anyone to make a request for information. The act works in conjunction with the Data Protection Act and specifies exemption data that does not have to be released or requested. This act ensures that people have access to information needed and ensures again that information is not exploited or used inappropriately.