1. Understand what data needs to be collected to support the HR practices

1.1 Explain why an organisation needs t collect and record HR data
There are many different reasons why organisations record HR data. On the legal side there are requirements to record data. It is important that organisations are operating in line with the law and government legislations and the only way to show they are compliant is via their data records. Legally companies are required to record data such as equal opportunity, right to work, incident records, tax, pension or minimum wage to name a few. If a company is not compliant with the law it will sooner or later run into trouble and be heavily fined or worse case it will cease to exist. (Please se appendix 1).

1.2 Identify the range of HR data that organisations collect and how this supports HR practice
For the company’s own benefit data are recorded to gain a better inside view of the day-to-day operation and performance. In order to remain competitive in the market and demonstrate success it is vital to record data, as they will show the company’s level of performance and what action needs to be taken to drive the business forward. Companies rely heavily on the HR operation to support the daily business on planning and decision-makings as well as the compliance with the law. Helping with the companies’ decision making and staff planning are data such as personnel records, inductions, learning and development or performance records. This list is not exhaustive. Different HR departments record different data, i.e. Recruitment, Payroll, Pension or ER (Employment Relations) but they don’t mean anything unless they are analysed in a way it helps HR to manage the member of staff’s life cycle of employment and for the business to effective manage and plan the workforce in order to drive the business forward. (please see Appendix 1).

2. Know how HR data should be recorded and stored

2.1 Describe different systems for recording and storing HR data and the benefits of each
HR data are stored either electronically or in hard copies (paper). The advantages to store HR data electronically become easily visible in larger organisations. Multiple users can access electronic HR database systems at the same time and from different locations. Data can be easily shared or analysed and provide real time information back to the organisation and satisfy legal requirements if recorded accurately. Last but not least they don’t need a lot of physical space. On the flipside, these database systems are of high maintenance in order to keep data secure and safe for the sake of the company and even more important to be compliant with the law. Storing HR data in paper format has the advantage that it is safe against any electronically manipulation, hacking or damaging. Smaller businesses tent to use some sort of paper filing system as it clearly is a much more cost-effective option. Access is very likely limited often only to one or two people. Clearly, a limited risk of unauthorised access. The use of electronic data storage systems for small business often doesn’t make sense as it would involve much higher efforts and costs to keep data safe (i.e. additional professional workforce, additional time to maintain electronic systems to keep access safe). Another advantage paper storage has is that if original documentation is required for audit purposes or to produce evidence in court cases (i.e. industrial tribunals), this can be easily produced. Original documents have a very high value as they very difficult to be amended or altered (i.e. birth certificates, passports, signed contracts, government documents and licences). They would become invalid if tempered with. Ultimately, this can lead to other more serious consequences.

2.2 Explain legal requirements relating to the recording, storage and accessibility of HR data.
Since HR data can be of very sensitive and personal nature it is important to regulate the process, access and storage of it. The Data Protection Act 1998 (DPA) regulates how personal data stored by HR filing systems (manual or electronically) is processed. It imposes obligations on those processing data. Under the act an employee (described as data subject) can request access to its own personal data held by an organisation. To guide organisations on how to respond to such data subject access requests (SAR) the Information Commissioner has issued a code of practice under the DPA. Depending on the data stored there are guideline of how long these need to be stored.