ABSTRACT
The HR Department of any company holds some of the most confidential and sensitive information in the organization. Data relating to employees is of a highly contentious and potentially litigious nature and has to be managed in accordance with compliance regulations. While sharing characteristics with other types of records, personnel records have some special characteristics; importance, sensitivity, longevity, quantity and ownership.
We will base this report in the company called CASTELLON SA, manufacturing factory with more than 250 employees. NOTE TO THE CASTELLON SA HR DIRECTOR ABOUT WHY RECORDING, ANALYSING AND USIN HR DATA IS IMPORTANT
I. Two reasons why organisations need to collect HR data.
Collecting and recording HR data is vitally important to our organisation. We need to keep certain records, some because the law requires them, and some for company’s internal purposes. Being a production factory we have to ensure we are in compliance with Health and Safety laws and regulations ensuring that all staff is maintaining high health and safety awareness. To avoid any act of discrimination in our company and to prove that the company is adhering to UK’s current law and legislation we have to implement the Data Protection Act to our data collection policies.
The HR data collection could help in our company’s overall performance measurement process. The data collected enable managers to make sound decisions more effectively. Some of the benefits of data collection are; helps identify or confirm a problem that exists; allows us to work with facts and empirical data; provides information with which to measure the success of implemented improvements.
Another example could also be to monitor employee absence levels across the organisation and looking for any pattern or trend relating to individual absences. This data could be used in absence review meetings and having all the correct and accurate data could be vital in a dispute with an employee.
II. Two types of HR data that is collected within organisations and how each type can support HR practices.
Statutory Records: Such as tax, national insurance contributions, sickness and SSP, hours worked and accident book. These types of records ensure that the HR department complies with all regulatory requirements.
Organisational Records: Such as Recruitment and Selection records, absence, staff turnover records, learning and development records. These types of records are essential for the HR department and allows them to monitor staffing levels and recruit when necessary, monitor staff sickness to ensure productivity is not being affected and also to if there is anything the organization can do to cut down on sickness levels and records to ensure that staff are maintaining a high level of efficiency through learning and development activities.
III. Two methods of storing HR data and the benefits of each.
Human Resources Information System (HRIS): HRIS is an integrated system used to collect, record, store, manage, deliver, present and manipulate data for human resources function. The basic function of a computerised HRIS is to hold data about employees. This information, which may relate to both existing and former staff, will include personal details as well as data about recruitment, salary, position, entitlements, attendance, leave, skills, training, performance, discipline and grievances. When integrated with payroll management, a HRIS can calculate salaries and provide a range of supporting functions such as preparing pay slips and payroll reports. The benefits of this system are the following:
 Customized to an organization’s unique needs.
 Integrated databases.
 Useful reporting functions and evaluation capabilities.
 Automated alerts for things like performance reviews, expiring certifications and benefits enrolment.
 Handles time-off requests, tax detail modifications, changes of address, benefits enrolment, etc.
 Powerful tool for “operationalizing” the information.
 Competitiveness.
 Facilitating information continuous processing.
Paper-Based Systems: Initially HR systems were “paper-based.” These systems operate independently and do not integrate with any other business-related functions. Features are added as needed. The reporting Is very rudimentary, and HR Is the only custodian of the data. It was common for managers during this period to send employees to HR to get their all their “personnel” questions answered. Paper databases have the following benefits:
 Much more straightforward.
 Generally do not require any training or explanations to new employee.
 More reliable than electronic systems.
 The most important information is safe.
 You can always access it whenever you need to get to it.
In CASTELLON SA we are making use of both systems. We have ten factories around the world; therefore, we use HRIS to create joint reports but we also have a locked room in each factory with private information about each employee such as medical data.
IV. UK legislation relating to the recording, storage and accessibility of HR data.
There is a substantial and complex amount of EU and UK legislation which has an impact upon the retention of HR records. Other important statutes, statutory instruments, EU Directives, and further provisions and proposals include the following:
Acts:
 Limitation Act 1980
 Data Protection Act 1998
 Freedom of Information Act 2000
 The Regulation of Investigatory Powers Act 2000
 Anti-Terrorism, Crime and Security Act 2001
Statutory instruments:
 Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2003/2426)
 The Regulation of Investigatory Powers (Acquisition and Disclosure of Communications Data: Code of Practice) Order 2007 (SI 2007/2197)
 The Data Retention (EC Directive) Regulations 2009 (SI 2009/859)
 The Reporting of Injuries, Diseases and Dangerous Occurrences (Amendment) Regulations 2012 (SI 2012/199).
Directives:
 Data Protection Directive 95/46/EC
 Privacy and Electronic Communications Directive 2002/58/EC
At Castellon SA we have done a research about the Data Protection Act 1998 and Freedom of information Act 2000 as we consider can influence more our activities within the HR department. At Castellon SA we believe that the data protection compliance should be seen as an integral part of employment practice, therefore it is important to develop a culture in which respect for private life, data protection, security and confidentiality of personal information is seen as the norm.
The DPA 1998 applies to most HR records, such us recruitment and selection documents, employment records, monitoring at work or information about workers health, whether held in paper, microform, or computerised format. Under the DPA 1998 data must not be kept any longer than is necessary for a particular purpose, if is out of date or excessive. Employees will have the right to access their records and we will be under an obligation to ensure that the data is accurate.
As a private organisation funded by the Government we are under the FOI 2000 regulation. The Act covers any recorded information that is held by a public authority in the UK, with the exception of Scotland. The DPA 1998 has provided traditionally individuals with a right of access to information held about themselves, the FOI 2000 extends this right to cover information about third parties as well as any other information that is held by the public authority. As a HR department we must be aware that information which is passed to public authorities may contain employee information. On the other hand the Act could be helpful and we should consider what types of information might be available to assist our business and make use of our own rights to access that information. To increase our effectiveness in this area is very important to train our employees about the Act.