It is extremely important for all organisations to record and store data for a number of reasons, one significant reason being to satisfy legal requirements. Government agencies such as HMRC, Department of Work & Pensions and the Health & Safety Executive to name but a few, can demand information from organisations at any time. Pay, tax and employee data needs to be accurately recorded and monitored by HR, in order to ensure employees are being treated fairly and organisations are compliant. Relevant legislation would include the National Minimum Wage Act 1998 with regard to pay, working hours are restricted under the Working Time regulations and safe working practices and conditions are outlined under the Health & Safety at work Act 1974. Failure to comply with this legislation can lead to errors, accidents, increased absence, breakdown of the psychological contract, poor employee engagement, poor retention rates, a bad corporate reputation and can result in serious financial consequences such as fines, legal action or closure of business in extreme cases.
Another reason that organisations collect HR data is for monitoring levels of employee sickness and absence. According to the CIPD’s 2013 Annual Survey Report on Absence Management, organisations reported employees absent between 6 and 8.7 days each per annum at an average annual cost to the business of £595 per employee due to a lack of resource and productivity. As can be seen, hours lost due to sickness and absence can cost organisations a huge amount of time and money every year and attendance data collected can be used for Occupational Health investigations or capability reviews with the employee, especially should multiple instances of absence occur or a pattern emerges. Attendance data can also help to spot patterns and trends which can pinpoint other less obvious causes for absence. Poor line management, workplace bullying, poor motivation, a training need or a welfare issue can...
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