According to the Work Market 2020 Insight report, 70% of business leaders spend 45 minutes to three hours of an 8-hour workday on repetitive tasks. This is no surprise as every organization has its own set of workflows, which can be time-consuming and prone to error. However, intelligent workflow automation can change this narrative.

Workflow automation enhances accuracy, boosts efficiency, and saves time and energy so you and your employees can focus on higher-value tasks. This guide explores digital workflow automation, showing you how to set up an automated process for work-related tasks with examples.

What is workflow automation?

It’s a process that involves using software to streamline and automate manual tasks in an organization. The digital workflow automation creates a process where tasks are completed automatically with little or no human intervention.

A workflow is usually part of a larger business process. When automated, it helps businesses increase efficiency, reduce errors, save time and money. Furthermore, it simplifies the work process.

Digital workflow automation allows you to create efficient and easy-to-follow steps for the processes that keep your business running. Examples include sending marketing emails, managing calendar events, tracking brand mentions, managing invoices, lead follow-ups, and more.

Automating these activities ensures information gets to the right people at the right time while fostering the smooth achievement of business goals.

What are the advantages of intelligent workflow automation?

As per the 2023 State of Process Orchestration report, 91% of respondents intend to invest more in process automation within the next 24 months. This is expected as intelligent workflow automation brings about a plethora of benefits including:

Reduce manual work and errors

A workflow automation system ditches manual processes like time-consuming paperwork, calculations, and data entry. These activities are prone to errors and can easily get misplaced. 

However, automation ensures accuracy and uniformity in operations, leading to better results and fewer mistakes. Furthermore, it cuts down the time spent on repetitive tasks, saves you the cost of paper supplies and other administrative expenses, and secures data while making it easy to monitor.

Streamline communication and processes

Many digital workflow automation systems integrate communication tools like emails, Slack, Microsoft Teams, and more. This helps handle repetitive tasks by ensuring information flows seamlessly across an organization’s departments. 

For instance, it automatically assigns and distributes tasks to appropriate team members and sends real-time notifications when tasks are assigned, completed, or need attention. This ensures each task is executed without manual intervention while eliminating delays and confusion regarding duties.

Improve compliance

Digital workflow automation sets a standard for procedures across your company by providing a clear record of activities. This ensures employees perform tasks according to predefined guidelines, industry standards, and regulations.

Reduce stress and burnout 

According to the Deloitte Global 2022 survey, 43% of Millennials and 44% of Gen Z employees have recently left a job due to burnout. Intense workloads are one cause of stress and burnout among employees.

However, an intelligent workflow automation system reduces the time and energy spent on tedious tasks. When employees know they have software to handle large volumes of work, they’ll feel less stressed and more motivated to work. Ultimately, this creates a positive work environment that encourages employees to stay productive and loyal, thus reducing attrition rates.

Read next: How to Use Data to Better Understand Attrition and Retention

Improve collaboration and resource allocation

Digital workflow automation tools often include features such as easy communication and feedback, collaborative editing, document sharing, and project management. This helps team members efficiently access and monitor projects, work together, and update one another on assigned tasks all in one place. 

Setting Up a Digital Workflow Automation System

1. Identify processes to automate

Not every task requires automation. Some can run efficiently without the risk of human error. Hence, it’s crucial to identify the activities that require this investment. The general rule of thumb is to automate repetitive, error-prone, cost-extensive, and simple tasks that can be made more productive. This may include onboarding process, customer inquiry responses, and invoice processing.

2. Choose a workflow automation tool that works for you

Research and pick a digital workflow automation tool that fits your business needs. When choosing, consider cost, user-friendliness,  seamless integration, security, capacity, and other vital factors. 

Depending on your needs, there are different automation tools to choose from. As an HR manager, your best bet is HR software. These tools help streamline workflows, improve efficiency, and optimize the employee lifecycle, from recruitment to retirement.

Learn more: HR Automation: Your Guide to Functions, Benefits, and Implementation

3. Design your workflows

For a smooth experience, create a visual representation or a detailed report of your workflow process that defines tasks and the series of steps from start to finish. 

This report helps employees easily understand and implement the workflow while showing what will be automated and the expected results. They also serve as a guide to spot automation errors and a blueprint for future automation needs.

For example, create a map or flowchart for employee onboarding, indicating specific steps such as document submission, scheduling meetings, and granting app access.

4. Implement and test thoroughly

Test your automated workflow to ensure the result meets expectations and fix any bottlenecks, data breaches, or other issues that can impede a smooth process. 

For example, test the onboarding process with dummy data to ensure all steps are correct and necessary information disseminated.

Once everything is good to go, introduce the tool to your team. Provide relevant training so employees can better understand the steps and are confident enough to execute them.

5. Monitor and refine your system

Once your digital workflow automation is up and running, monitor and optimize the process regularly. This is to ensure the workflow automation remains accurate, efficient, and productive. From time to time, check for bugs, assess completion times, and identify areas of improvement through employee feedback.

10 Workflow Automation Examples For HR Teams

Document workflow

HR teams often work with numerous documents, from offer letters to employment contracts. This paperwork requires signing and safe storage. Some of them include:

Contract approvals 

A digital workflow streamlines the entire process from contract creation to final approval. First, identify who needs to review and approve the contracts. Then, use the appropriate software that facilitates digital signatures and automates notifications and reminders for involved parties.

Onboarding paperwork

Use automated workflows to allow new hires to complete and sign paperwork electronically. This ensures a consistent employee onboarding process, thus reducing stress.

Expense report processing 

The expense report workflow process typically involves submission, review, approval, reimbursement, and record-keeping. Use automation to make it easier for employees to submit, monitor, and analyze expenses. This tool should be easy to use and integrate with existing accounting and payroll systems. 

HR workflow automation

Automated job posting and candidate screening

Automated recruitment workflows often begin with posting job openings on LinkedIn, Indeed, and Glassdoor. Then, collect applicants’ information and screen resumes via an applicant tracking system (ATS). The workflow should then send automated emails to inform candidates about their application status, including online assessments if necessary. 

Once the candidate is screened and hired, it should then transition into the onboarding workflow as per above.

Read more: Which Employee Onboarding Software is Right for Your Team?

Leave request and approval

Every employee will request paid time off at your company. An HR workflow automation system makes the request and approval process easier. 

The tool replaces the monotonous email exchanges traditionally required for leave requests. It also centralizes data for easy access and integrates with the team’s calendar to reflect an employee’s absence.

Performance review reminders

HR software allows you to create employee evaluation questionnaires, which employees and managers can fill out and submit digitally at their convenience. It also sends reminders to employees to complete their self-evaluation and document results. This helps review performance effectively without micromanaging your team.

Payroll processing

HR teams can automate payroll processing by using software that collects employee timesheet data, calculates wages alongside taxes, and generates payslips in compliance with labor laws. These tools also help track organizational changes, new hires, resignations, employee promotions, and inform relevant stakeholders about necessary changes.

Employee satisfaction surveys

Determine the areas to measure employee satisfaction. It could be overall job satisfaction, company culture, work environment, leadership, or employee financial wellness. 

Use a survey tool to create a questionnaire and send invitations via email or internal communication platforms. Determine how often employees will receive this survey and schedule distribution and reminders.

Time and attendance tracking

HR intelligent workflow automation shuns paper timesheets and manual entries and adopts mobile apps where employees clock in and out. This digital workflow automation system also reports work hours including overtime and minimizes the risk of inaccurate attendance tracking. Ultimately, it promotes a fair and reliable timekeeping system.

Benefits enrollment

Use automation tools to configure benefits, determine eligibility benefits, and enable employee self-service. They typically import employee data from existing HRIS, send timely notifications on the enrolment processes to employees, and allow employees to review and choose benefits. 

Also, these tools seamlessly integrate data from payroll systems, so when employees select their benefits, the system automatically deducts contributions to ensure compliance and eliminate errors.

Benefits of Using an HR Workflow Automation Software

HR software offers these perks to every organization:

Data-driven insights

Automation saves time that would have been spent collecting data from different sources. It spots trends and areas of improvement, and helps you make informed decisions in a couple of clicks. It allows HR teams to gain real-time insights into the workforce, see how decisions affect business outputs and adjust accordingly.  

For instance, you can gather, organize, and analyze data from various tools within one unified system. It also creates automated reports you can easily share with team leads and managers for strategic decision-making.

Enhanced employee engagement

Using automation software means employees are freed from performing mundane, repetitive tasks. This seamless, convenient, and user-friendly experience empowers employees to be on top of their tasks with little or no input from HR teams. It keeps employees engaged and boosts job satisfaction.

Relevant reading: 20 Strategic Employee Engagement Survey Questions

Reduced risks and improved compliance

Automation ensures your company complies with employment laws and tax regulations. How? It provides access to accurate employee benefits, creates contracts compliant with local regulations, and offers proper documentation and recordkeeping. All these work together to avoid breaking labor laws, which can hamper business growth.

Simplify Workflow Automation with Omni

Omni frees HR teams from administrative cycles by offering workflow automation for the entire end-to-end employee lifecycle — from recruitment and onboarding to employee engagement and payroll — allowing you to redirect your time to strategic work that drives business growth.

Powering Asia’s fastest-growing, modern companies, Omni scales alongside your company so you can customize and leverage the system to meet your business exactly where you are — as well as where you’re going.

With a full suite of modules to support every aspect of your business, Omni’s platform offers an intuitive and fully customizable platform that integrates with your team’s favorite tools for a seamless and timely adoption.

As remote-first workplaces become the norm, travel has become essential for employee well-being, fostering a positive company culture, and ensuring smooth operations. Whether it’s for those rare face-to-face meetings, team bonding trips, or for business, employees need a clear roadmap, which is why creating a comprehensive travel policy is crucial. 

What is a Travel Policy?

A travel policy is your company’s guiding light for managing business trips with fairness and efficiency. It spells out what’s expected when employees hit the road. Think of it as a travel playbook that keeps costs in check, aligns with company goals, and puts safety first.

By setting standardized steps, the travel policy streamlines travel planning, cuts down on unnecessary spending, and clears up any confusion.

What are The Benefits of Having a Travel Policy?

For Employees

• Flexibility and autonomy: The travel policy sets the ground rules and expectations, but it also gives employees enough freedom to customize their trips based on their preferences.
• Safety and well-being: Ensuring compliance with safety and health protocols is crucial in an ever-changing world. This policy aims to prioritize the safety of our employees while traveling for work.
• Clarity and transparency: By spelling out the ins and outs of business travel, a travel policy ensures everyone’s on the same page and helps employees make informed travel decisions.
• Cost control: Adhering to the travel policy guidelines allows employees to avoid unnecessary expenses and keep travel costs within their budget.
• Fairness and Equality: A solid travel policy ensures fairness by setting consistent rules for everyone, regardless of rank.

For Organizations

• Increased productivity: With clear guidelines and expectations for business travel, employees can focus on the main purpose of the trip, increasing efficiency and productivity. 
• Better decision-making: A standardized travel policy allows employers to make better decisions through data and well-defined criteria.
• Improved employee morale and engagement: Fair and transparent travel policies can contribute to a positive company culture, boosting employee engagement and satisfaction.

• Optimize budgets: By establishing specific guidelines and removing the fluff, organizations can optimize budgets, and stick to creating a travel plan that fits its needs.
• Risk management: A good travel policy doesn’t just pack your bags; it packs peace of mind too, tackling potential risks and ensuring employee well-being during their business travels.

What to Consider Before Creating a Remote-First Travel Policy

Approval process

A solid policy should map out the approval process for business trips. It should include details such as criteria for approval, relevant forms that need to be filled and signed, persons involved in the procedure, and more.

Work-life balance expectations

In a remote-first organization, crafting travel policies with work-life balance in mind is a must. Guidelines for trip frequency and duration should be established to keep employee burnout at bay and ensure employees don’t miss out on their personal lives.

Expense reimbursement policies

With travel comes expenses. It’s important to consider details and process for submitting and reimbursing business travel expenses, covering everything from flights and accommodations to meals.

Data Security Measures

With remote work, data security is pivotal. The travel policy should have some golden rules for keeping company info safe on the go, such as using secure Wi-Fi networks and steering clear of public computers.

Read next: Employee Data Management: How HRIS Can Help Achieve Accuracy and Security

Communication and collaboration

In a remote-first workplace, nailing communication and collaboration is key to success. Your travel policy should include tips and guidelines to stay connected and productive even while being on the go. 

Travel policy building tools

Numerous tools are available that can simplify and enhance the process of building and managing your company’s travel policy. Consider modern tools such as TruTrip‘s policy builder to streamline planning, ensure compliance, and promote efficiency.

4 Steps to Establishing an Effective Remote-First Travel Policy

1. Define your needs

To establish an effective remote-first travel policy for your organization, start by asking these key questions:

How frequently are employees traveling for work?

Figuring out how often employees travel helps identify patterns and assist in resource planning.

What are the primary purposes for travel?

Are your employees attending conferences, meeting up with clients, or attending training sessions? Knowing the reasons for their trip can help prioritize and streamline travel plans.

What is your budget for travel expenses, and how will you manage it?

Establishing a travel budget helps manage expectations and expenses. Consider adopting HR tools to track and manage employee travel expenses and reimbursements.

Additional reading: 5 Reasons to Switch to an All-In-One HR Software

2. Establish the framework

Determine if travel requires pre-approval

Decide if employees require approval prior to their trip. Here are some key approval factors to consider:

• The purpose and duration of the trip.
• Time zone differences and how this will impact an employee’s work schedule.
• Any expected expenses that may arise such as transportation, accommodation, meals, and any other related costs. 

Set expectations for communication while traveling

Lay out communication guidelines to keep interactions as smooth as possible during the trip. Expect the unexpected and brace for any connectivity hiccups that might mess with your communication flow. With a solid game plan, you can make the most out of your travel policy and develop a cost-effective trip.

3. Address key considerations

Maintain productivity during travel

Provide clear guidelines and best practices to keep employees motivated and productive even while on the go.

Reimbursement policies

Establish reimbursement policies so employees know what expenses are covered and how to claim them.

Employee safety

Craft a foolproof travel safety guide for employees: think essential procedures, emergency contact numbers, and health tips.

Tax implications

Highlight any tax implications employees might encounter based on their travel location and length of stay. Point them to relevant tax resources or professionals to ensure they stay compliant with any tax requirements.

4. Communicate and update your travel policy

Clear communication: Make sure everyone is aware of the travel policy. Share it in meetings, email blasts, and include it in your employee handbook or intranet. Keep it easily accessible so employees can reference it whenever they need.

Regular reviews and updates: Review your travel policy regularly to keep up-to-date with employee feedback, changing regulations and evolving company needs.

Build a Successful Travel Policy for Your Remote-First Team

Crafting a solid travel policy for a remote-first team is crucial for balance, productivity, and safety. That’s why it’s important to have the right tools by your side. 

All-in-one HR software like Omni is a powerful tool for storing disparate company files scattered across your company. As a single source of truth for documents such as travel policies, Omni streamlines your HR processes and makes them more efficient.

Powering Asia’s fastest-growing, modern companies, Omni’s document management scales alongside your company so you can customize and leverage the system to meet your evolving document management needs while ensuring compliance with regulations. 

Streamline your travel policy management for your remote-first workplace today,

Finally, your company has begun to scale with its workforce increasing. However, it’s not long before you notice that your company’s growth comes with an increase in HR workload. How do you maintain consistency in hiring or keep up with accurate performance evaluations? This is where HR workflows come into play.

This post will explore how you can create effective HR workflows and transform how you manage HR tasks. Let’s begin by understanding HR workflows.

What is an HR workflow?

An HR workflow is a set of organized tasks or processes that automate your HR functions, ensuring they are efficient and error-free. They include automating tasks like employee onboarding, payroll processes, and other HR-related activities. To better grasp the meaning of workflows, let us consider the examples of HR workflows. 

What are the examples of HR workflows?

1. Recruitment and onboarding

A recruitment and onboarding workflow involves creating an ordered process to ensure the hiring and welcoming of new hires to your company is hassle-free. A recruitment and onboarding workflow includes the application process, collection of new hire’s paperwork, and onboarding tasks.

For instance, recruitment and onboarding workflows would involve setting up an applicant tracking system (ATS) that collects and organizes potential employees’ applications. Then, after your HR team reviews the submissions and selects a candidate, the workflow automatically transitions the candidate to the onboarding process, which includes completing all necessary paperwork and training sessions.

Read next: 10 Companies That Have the Best Employee Onboarding Experience (and You Can Too)

2. Performance management

Performance management workflows are organized processes you design to ensure your employees meet their goals. A performance workflow would contain key components including setting goals, conducting performance reviews, and providing feedback.

A performance management workflow would include setting measurable goals that align with your company’s objectives. Then, integrate systems that can automate the scheduling of employee performance reviews and ensure they receive prompt feedback.

3. Leave management

This type of HR workflow involves organizing a set of processes to handle the leave requests of your employees. An effective employee leave management HR workflow can submit and approve leave requests and update payroll systems.

For example, a leave management workflow would include setting up a time and attendance system that makes it easy for employees to submit their leave requests. Then, after you approve their requests, the workflow automatically updates the payroll system to reflect their leave.

4. Payroll processes

A payroll workflow is a sequence of organized tasks you create to ensure your employees are paid accurately and on time. This HR workflow makes it easy to calculate salaries, deduct taxes, generate payslips, and initiate payments.

The workflow would involve having software that calculates each employee’s gross salary. After that, it automatically deducts contributions such as taxes and health insurance premiums. Then, the payroll workflow ensures the software generates payslips that outline employees’ deductions and final take-home pay and then initiates direct deposits. 

5. Offboarding

An offboarding process workflow involves creating an ordered process that smoothly and professionally manages the departure of employees from your company. 

An offboarding workflow would include having a Human Resource Information System (HRIS) that automates the scheduling of exit interviews to gather feedback from employees leaving the company. Then, the workflow notifies your IT team to revoke the employee’s access to the company’s data and communicates with the payroll team to process any outstanding payments.

With an understanding of the examples of HR workflows and how you can easily create one for your business, let us explore why you must have these workflows in place. 

Why is it important to have an effective HR workflow?

Having effective HR workflows aids you as an HR manager in reducing your workload and automating manual and repetitive tasks. Workflows give you more time to concentrate on aspects of human resources that matter. Further, here are some reasons it’s important for your organization:

Improve efficiency and accuracy

HR workflows include the use of structured systems and automation, reducing the risk of errors from reliance on manual or paper-based processes. Using workflows saves you time and improves efficiency.

Ensure compliance

HR workflows aid you in complying with legal requirements like the Labor Code regulations. Workflows ensure you correctly record the documentation of your HR processes, preventing compliance violations and potential legal issues. 

Streamline communication

Workflows make communication within the HR department and the entire organization easy. It also streamlines communication and ensure your employees have a satisfied experience from onboarding to offboarding.

Reduce costs

Workflows improve employee engagement and reduce the high costs of recruitment and training new staff. Additionally, it automates repetitive tasks like data entry and applicant tracking that would otherwise be handled by humans, thereby cutting costs.

Remember, having effective HR workflows make it easier for you to handle HR processes by automating tasks. This reduces the risk of errors and keeps your HR process effective.

What are the steps to create an effective HR workflow?

When creating your HR workflow, it’s a continuous process of looking out for areas of improvement and optimizing your process. Here are five steps to developing effective workflows:

1. Identify processes for improvement

The first step when creating your HR workflow is to evaluate your current processes and identify bottlenecks that need improvement. Some effective methods for assessing your current HR processes include;

• Surveys and feedback: Use employee satisfaction surveys to get feedback from employees and managers helps you spot areas of your current process that may be slow or confusing.

• Process mapping: Creating visual diagrams (flowcharts) of your current HR workflows helps you understand each step of the process and identify where errors occur. 

• Data analysis: Observing patterns in delays and errors from your existing workflows helps you analyze your HR metrics and performance data. This data provides evidence of where your current HR workflows need improvement.

2. Define the workflow scope

The next step when building out your HR workflow is defining the scope of the workflow. Here’s how to define your workflow scope:

• Clearly outline what your new workflow aims to achieve to guide its design and implementation.  
• Specify the essential tasks and milestones within the workflow. This helps you keep it comprehensive and focused.
• Engage relevant stakeholders like HR team members and employees from the beginning of the planning process.

By defining your workflow scope, you create a clear roadmap for developing and implementing the new HR process.

3. Develop clear guidelines

The third step when creating your workflow is to develop easy-to-follow guidelines that outline each step of the workflow. 

Clear guidelines ensure stakeholders are aware of their responsibilities within the workflow and that they correctly execute them. 

To develop clear guidelines, you must:

• Ensure your documentation describes each step of the workflow and is in simple language so it’s easily understandable for all users.
• Clearly define the roles and responsibilities of each stakeholder involved in the workflow. This ensures there is accountability and no misunderstandings.
• Include visual aids such as diagrams and flowcharts to assist your users in understanding complex processes and grasping the workflow quickly.
• Develop standard operating procedures (SOPs) to ensure users correctly perform each task within the workflows.

4. Leverage technology and automation

The next step when creating an effective HR workflow is utilizing HR automation tools like employee self-service portals and application tracking systems. Leveraging technology assists you in automating manual and repetitive tasks. 

Some technologies you can leverage when building your workflows include:

• Performance management tools
• Payroll softwares
• Applicant tracking systems

5. Implement and test the workflows

The final step is implementing and testing your workflows, ensuring it meets the intended goals. 

Here’s how to effectively implement and test your workflows:

• Pilot phase:

First, launch your new HR workflow on a small scale within a specific group of employees. Launching at a small scale makes it easier for you to monitor the process closely and identify any issues before the full-scale implementation.

• Collect feedback:

During the pilot phase, ensure you collect feedback about the experience and challenges of users interacting with the new workflow. At this stage, pay attention to quantitative data such as time-saved and qualitative feedback like ease of use.

• Incorporate feedback:

Using the feedback you’ve gathered, refine and optimize your workflows. Incorporating user feedback ensures you address practical concerns and issues, making the adoption of your workflow easier.

• Full implementation:

After making necessary adjustments by incorporating user feedback, implement your new HR workflows across the organization. Remember to provide training sessions to ensure all stakeholders understand their roles and responsibilities within the workflow.

• Continuous evaluation:

The implementation of your workflow should not be a one-time event. After implementation, ensure you continuously monitor the performance of your workflow using KPIs such as user satisfaction, processing time, and error rate.  

Leverage Effective HR Workflow with Omni

HR automation helps save significant time and reduce costs associated with the various manual tasks performed every day by HR and leadership. Studies have shown HR automation can decrease administrative costs by 30% for HR professionals and 49% for employers.

Routine HR workflows, such as data entry, employee onboarding, leave management, and payroll processing, are streamlined and automated, freeing up HR teams to focus on more strategic and value-added activities that drive productivity and profitability for your organization.

What’s more, HR automation tools like Omni provide clear and timely insights into your organization’s spending, helping you build and audit your HR budget backed by real data.
Learn how Omni users like Influur saved time and reduced costs by leveraging HR automation tools.

If you’re ready to make that jump and take charge of your HR workflows,

Staying organized and up-to-date with employee records is a complex process that requires meticulous attention to detail. As there are so many regulations involved in the process, from privacy laws to retention requirements, it can be overwhelming. 

However, maintaining accurate records is crucial for compliance and effective human resources planning. That’s why we’ve created this comprehensive checklist and guide for employers and HR leaders to make maintaining work records a breeze. 

What are employee records?

Employee records, also known as employee files, contain relevant information about employees, highlighting their relationship with the company. These records are categorized into two parts, including personnel files and confidential information. Knowing where to store each type of information ensures privacy compliance and easy access for authorized personnel.

For example, the personal file contains basic information about employee documents such as employment contracts and performance reviews. It is also a great place to store employee agreements, such as non-disclosure or non-compete agreements. 

In many instances, employers are legally required to keep certain employee records and information in a confidential file separate from the personnel file. The confidential file may include items such as medical records, federal and state leave documents, background checks, and documents pertaining to an employee investigation.

Why is it important to maintain accurate employee records?

Employee records management is one of the many administrative functions of a company’s HR department. It involves a process of collecting, organizing, storing, and managing relevant information about employees. 

One of the ways HR leaders can streamline this process is by maintaining accurate records.

Without it, inefficiencies can arise, compliance risks increase, and decision-making can be compromised due to unreliable or incomplete data, therefore jeopardizing the whole record management process.

Here are more reasons why you should ensure accuracy and consistency in work records management. 

Legal compliance: Accurate record-keeping ensures companies have the required documents on hand for any audits or legal inquiries. 

Employee benefits administration: Staff files contain benefit-related information such as health insurance, retirement plans, and paid time off. Maintaining up-to-date and complete records helps companies effectively administer these benefits. Additionally, accurate records help prevent legal disputes related to employee benefits.

Performance management: With accurate performance records, managers can easily track each employee’s progress. A well-maintained record can also help managers identify areas for improvement and recognize outstanding performance. Lastly, organizations can make informed decisions with the right data on employee promotions, transfer, or termination.

Read next: A Guide to Mastering Performance Management

Compensation and payroll: Accurate record-keeping of compensation and payroll related documents ensures employees are paid accurately and on time. Organizations can also make informed decisions about their compensation strategy. This includes salary adjustments, bonuses, and promotions. 

Employee development: With a well-maintained employee record, you can identify each employee’s training needs and create personalized development plans tailored to their skills and career goals. This contributes to the improvement of overall employee performance. 

Succession planning: Organizations can use employee records to identify and develop new leaders to take up key positions. These records also help to ensure a seamless transition in the event of an employee’s departure or retirement. 

What are the guidelines on how long to keep documents?

Knowing how long to keep documents is crucial for several reasons. 

Employment laws, tax regulations, and industry standards all have specific requirements for how long different documents must be kept. 

For example, these are common retention periods for various employee documents: 

• Employment records are typically retained for 3–7 years after termination.
• Payroll records are kept for at least 3 years.
• Tax records are retained for at least 4 years.
• Benefits records are retained for 6 years after the plan year ends.
• Training records should be kept for the duration of employment plus a few years after termination.
• Performance reviews are also retained for 3-5 years after termination.

Keeping these employee records for the required periods ensures legal compliance, protects the business during audits or legal disputes, and helps manage records efficiently. 

Failing to do so can lead to penalties and other problems. Therefore, having a clear document retention policy is essential for any business.

Your Comprehensive Staff Files Checklist

Here we’ve included a comprehensive list of the right information employers and HR leaders should store in staff files: 

Pre-employment

The pre-employment stage involves assessing candidates to determine if they are the right fit for the job. In this process, HR leaders are required to collect and document information about candidates during the hiring stage. These documents include: 

• Job application

This is a formal document that individuals submit to express their interest in specific job positions in your company. Job application as part of an employee record is important as it helps track career growth, supports performance reviews, and ensures proper documentation for compliance. Examples of employee information collected during this stage include basic information, personal information, educational background, professional experience, skills, and qualifications. Other documents, such as a resume, cover letter, and references are also collected during the job application process.

• Offer letter

Another work record that you should store in a staff file is an offer letter and other agreements the employee would have signed during the offer process. After the interview stage, once employers decide to hire a candidate, the documents confirm the terms of employment and protect both parties by outlining job scope, salary, benefits, and other important details.

• Background check

A background check report is an important document to store in an employee’s record. This report verifies the candidate’s credentials and ensures their suitability for the role. Keeping this report in employee records helps maintain a complete profile, supports legal compliance, and serves as a reference for future evaluations.

Onboarding

The purpose of the onboarding stage is to help new employees transition into new roles at the company. The following documents should be collected during this period: 

• Completed forms

Onboarding forms are documents that new employees are required to fill out and submit as part of the onboarding process when they start a new job. These forms help gather essential information and ensure compliance with legal and company policies. Such forms include tax forms, direct deposits, employment eligibility verification forms, personal information, etc. 

• Training records

You should also keep documentation of initial and ongoing training and development sessions. It should include dates, topics covered, and completion status.

• Employee handbook acknowledgement

An employee handbook contains information on a company’s policies, procedures, rules, and working and behavioral expectations. The document should be signed and acknowledged by the employee as evidence that they have received and understood the terms and conditions outlined. 

Employment

This is the period during which the employee works actively for a company. Documents collected during this period include: 

• Performance reviews

These evaluations are regularly conducted to document the employee’s performance, goals, achievements, and areas for improvement. Managers also use these documents to compare performance reviews from previous years with the current year’s review. It comes in handy when there is a need to provide additional support and training to an employee, as well as a written warning in cases of consistent underperformance and behavioral issues.

• Payroll records

Employers keep a journal or record of all employees wages or tax payments as a way to ensure accurate payroll processing, maintain compliance with tax laws, and provide accurate documentation for financial audits. Other employee information collected in payroll records includes salary, bonuses, deductions, and any changes to compensation over time. 

• Benefits documentation

Benefits are additional compensation provided to support the well-being of employees. This employee record contains information on workers’ enrollment in company benefits such as health insurance, the E.V. scheme, fertility benefits, retirement plans, and other perks. 

Termination

This stage concludes the employee lifecycle and includes the following key documents: 

• Resignation/termination letter

This is a written document that informs the employee that their employment is terminated, or a formal letter from an employee resigning their position. The document should be signed by both parties to ensure legal compliance and contain the name, job title, reason for dismissal, and if there is a severance package offered.

• Final paycheck

This work record contains information on the final paycheck, including payment for unused vacation days, overtime pay, and other final compensations. 

• Exit interview

The exit interview process gives companies an opportunity for departing employees to provide feedback about their experiences, details about their termination, and other relevant information. The insights gotten from this record can highlight areas where the company needs improvement.

Best Practices for Maintaining Employee Records

1. Store records securely

Storage is an important process for maintaining employee records. 

If you’re storing paper documents in a locked file cabinet with key access for limited individuals, then it is best practice to store them separately from other files. If you’re storing files electronically, the staff files must be kept in a place where they are readily accessible for inspection or examination. 

You must also have a backup system in place. You don’t want to have all your files on just one system because if something goes wrong, all those files could be lost. Lastly, you should find effective ways to remove staff files you no longer need. Use a shredder or secure disposal services to ensure data security. Similarly, make sure electronic files are wiped clean from the database as well. 

2. Limit access to authorized personnel

To ensure confidentiality and compliance with data protection regulations, there are protocols you must follow. You have to identify a limited group of individuals who will have access to the employee records. It is not necessary for a supervisor to see everything in an employee’s file. Some of the files should only be seen by HR and top management.  

3. Periodically review and update employee records

Reviewing and updating employee records is an important way to ensure accuracy and compliance with current regulations. This can be done on a quarterly or semi-annual basis to reflect any changes in employment status, personal information, or job performance. Regular reviews help identify discrepancies early, allowing for timely corrections and maintaining accurate records.

4. Implement security measures

Protecting employee records is essential. For protection purposes, you can use encryption, access controls, and regular security audits. Ensure only authorized personnel can access sensitive information and store all data securely. You should also educate employees on data privacy to prevent unauthorized access. Define specific circumstances under which employees can access these files, and limit employees from correcting, altering, or removing documents in the file.

5. Consider adopting HR software

If you want a streamlined and efficient method to manage employee records, then you should consider investing in HR software. 

For example, document management technology helps to automate many aspects of record-keeping, which potentially reduces errors and provides easy access to essential information. By using modern tools, you can enhance data security, improve compliance, and save time on administrative tasks.

Manage Your Employee Records with Omni

Adoption of an all-in-one HR software would be advantageous for all stakeholders in the organization, especially when it comes to employee file management. Businesses across various industries and scales are increasingly embracing automation and digitization to maximize productivity. 

Powering Asia’s fastest-growing, modern companies, Omni’s document management scales alongside your company so you can customize and leverage the system to meet your evolving employee records management needs while ensuring compliance with regulations within your jurisdiction. 

Book a demo with our team and see how Omni can simplify the intricacies and complexities of employee records and minimize the costs associated with common errors.

Some countries in Asia Pacific abide by standard General Data Protection Regulation (GDPR) obligations, while others add their own touch. Ideally, you should comply with such regulations when developing and managing your employee data storage systems.

Another regulation to abide by is the Personal Data Protection Act (PDPA). In Malaysia, “a person who fails to register, and process personal data without a certificate of registration, commits an offense and shall on conviction, be liable to a fine not exceeding RM 500,000 or to imprisonment for a term not exceeding three years or to both.”

To avoid such hefty penalties, it’s best to maintain confidentiality and safety in your employee file right from the start. In this guide, we’ll share the importance of employee file management and best practices for building it.

Read next: Employee Data Management: How HRIS Can Help Achieve Accuracy and Security

What are employee files?

An employee personal file or employee record is a digital or physical folder composed of documents about an employee’s tenure at your company. It’s a record of their employment history from beginning to end.

Typically, an employee file includes legal documents, employee documents, and company documents. To illustrate, you’ll find the following documents in an employee file:

• Offer letter
• Job description
• Signed employee handbook
• Signed PTO policy
• Signed non-disclosure agreement
• Tax forms
• Payroll forms
• Employee contracts
• Workers’ compensation
• Employee benefits forms
• Termination documents
• Resume
• References
• Performance evaluations
• Disciplinary transcripts

Why do employee files matter?

One of the main goals of keeping employee files is legal compliance. You need to comply with local, state, and federal labor laws by keeping certain employee files for the necessary period.

On top of that, employees might request for these documents, so you should keep them easily accessible. In case of legal disputes, these documents can serve as crucial evidence.

Additionally, an employee file is useful for HR and internal operation purposes. You can monitor attendance, manage performance, and productivity levels with employee files as it contains the details such as training history, past performance reviews, and payroll documents. 

Accordingly, you can make informed decisions about their future in your company, including employee promotions, pay raises, or terminations. Plus, these files keep you informed about which training and certificates your employees have, enabling you to create customized employee development plans for them.

What are the types of employee files?

It’s crucial to categorize employee files into the following two sections so that you can manage them properly and manage your access permissions accordingly.

Personnel files

Personnel employee files include the core biographical information and documents related to the employee’s job history and are easily accessible by the employee.. They should be based on facts, not opinions. 

Typical personnel files include basic information, such as an employee’s full name, address, education and qualifications, and date of birth. Employment documents such as job descriptions, job applications, resumes, and employment agreements should be stored here as well.

Confidential employee files

In contrast, confidential employee files hold sensitive employee information with limited access controls.

Think confidential performance reviews and medical files, such as health insurance forms, medical leave requests, family and medical leave paperwork, doctor’s notes, accident reports, beneficiary information, worker’s compensation claims, and other documents with medical information.

Other confidential files relate to payroll. Examples include attendance records, pay authorization forms, payroll deduction forms, timesheets, reimbursement receipts, advance pay request forms, award or bonus paperwork, and employee raise paperwork.

If an employee leaves the company, relevant files such as employee termination or resignation letters, exit interview forms, reasons for dismissal, unemployment compensation forms, and a copy of their final paycheck should be filed appropriately. You’ll need them as evidence in the event of a legal dispute.

What to avoid when building an employee file?

Avoid adding the following information or documents to an employee file if you want to protect their privacy, comply with labor laws, and ensure fairness.

Unnecessary information

You shouldn’t include unnecessary information related to your employees, such as what they post on Facebook or how active they are on TikTok, for example. Avoid personal opinions about your employees, only hold factual and objective documents.

Privacy violations

You might accidentally breach privacy regulations by storing excessive medical information, financial information, and family information in an employee file. Examples of such information include:

• Bank account details
• Social Security numbers
• Immigration documents
• Documents protected by relevant local regulations

Security risks

As an employer, you’ll have access to an employee’s private and sensitive information. It’s your duty to protect your employee data by restricting access and storing it securely. Your privacy policy should also include who has access to what information and why.

Also, use the proper disposal methods for documents you no longer need so they’re impossible to reconstruct. Refer to state and federal law for that. For example, you might need to shred physical files. As for electronic ones, ensure sensitive information is completely wiped from your database and establish strong data security measures to prevent data leaks.

Compliance issues

Under many jurisdictions, you must store certain employee data, such as basic employee and compensation information, for at least six years. Missing or inaccurate data may cause compliance issues

For that reason, you should go through your employee files every year to update and organize the relevant ones, and dispose of irrelevant data. Always refer to the labor laws that apply to your jurisdiction, and ensure you comply with them.

On another note, compliance issues can occur due to unequal treatment. Your confidential files might include data that could fuel this. That’s why it’s important to train managers to safely and objectively manage this data.

Best Practices for Building an Employee File

Here are some best practices to help you avoid any of the mistakes we’ve discussed above when it comes to building your employee file.

1. Categorize and organize all your employee information

You need a standardized system with logical categories that you can store employee information and documents under to maintain consistency across your HR system. This way, you can easily locate and manage any employee file later.

To explain, you’ll want to create a folder for each employee. Inside of each, you can create sub-folders for various categories (like payroll and training). Emulate the same system for each employee in your company.

Be consistent in everything down to the document naming, so it should look like this: [employee last name] [employee first name]-[document name]-[name]. If it gets overwhelming, you can use an electronic document management system (EDMS), also known as an HR electronic filing system for an automated process.

2. Include and retain necessary documents required by regulations

Write a checklist or index the types of documents you need for each employee file. This way, you can easily spot incomplete files and request them from your employees.

Omni tip: Label files with the duration you are required to keep them as per regulations. This way, you can easily identify which files to keep and which to dispose of during your yearly employee file review.

3. Establish security and access controls

Identify who can legally view each document in an employee file, and train your HR team to understand these confidentiality requirements.

Usually, HR individuals and benefits managers get access to all data. Only your legal team should view files about ongoing litigations. Managers have access in some cases, and employees can typically view their own employee files.

You can adjust the control settings or access permissions for each document accordingly, ensuring that information is only available to those who need it.

4. Regularly review and update employee files

Review your employee files annually. Do this before any audits (like payroll). With that, you’ll keep up with form renewals and certificate expirations, and you’ll know that the employee information on hand is accurate and updated. Don’t forget to update employee files with any additions or updates, such as training records, promotions, and raises.

5. Develop a disaster recovery plan

What will you do if a cyberattack compromises your digital employee files? What about physical copies? In case of a fire, what will happen to them? To counter this, prepare a disaster recovery plan by making digital or physical backup copies of your employee records, and store them in an appropriate and safe location.

6. Implement user-friendly HR software

Invest in employee record management softwares such as Omni that’s easy to use and compliant with privacy and security measures.

This way, you can increase HR productivity, comply with labor laws, access metrics and analytics, and centralize your documents. Not to mention, you can avoid any errors, streamline data filing, and extract, save, share, and update your documents easily.

Read next: 5 Reasons to Switch to an All-In-One HR Software

7. Provide training to HR personnel and managers

Now that your employee filing system is in place, the next step is to train HR personnel and managers on how to use it. They should learn about proper data storage, indexing, monitoring, and disposal.

Benefits of an Effective Employee File

When you create an effective employee file management system, here’s some benefits you can expect:

Simplified HR processes

HR processes thrive on data, so imagine what your HR personnel could do with centralized employee files.

Simply, they can skip the haphazardness of combining and sorting through scattered employee files. Instead, they can retrieve information from a central location and get a chronological overview of the employee’s behavior, including disciplinary actions and training. With the data on hand, HR teams can effectively assess employees’ productivity and create employee development plans accordingly.

Compliance with regulations

When you set a standardized system for data filing that takes federal, state, and local regulations into consideration, you can be sure that your business practices are compliant, reducing the risk for legal action and penalties.

Improved decision making

When you have easy access to your employees’ data, informed decisions can be made for situations such as promotions for outstanding performances to implementing employee development programs for closing performance gaps. 

Unlock the Benefits of Effective Employee File Management

Adoption of an all-in-one HR software would be advantageous for all stakeholders in the organization, especially when it comes to employee file management. Businesses across various industries and scales are increasingly embracing automation and digitization to maximize productivity. HR software stands out as a pivotal avenue through which corporations are undergoing digital transformation.

Powering Asia’s fastest-growing, modern companies, Omni’s employee database software scales alongside your company so you can customize and leverage the system to meet your evolving employee file management needs while ensuring compliance with regulations within your jurisdiction. 

If you’d like to learn more about how Omni’s all-in-one HR software automates the entire end-to-end employee lifecycle,

The BTI Executive Search 2023 Workforce Insights Report revealed that “89% of Asia Pacific employers struggle to attract new talent” and “86% of companies find it hard to retain employees.”

Of course, many factors contribute to this difficulty, and we can refer to the 2022 Global Benefit Attitudes Survey that analyzes major markets in Asia Pacific for an explanation. Among others, it indicates that job security is a big factor in retaining and attracting your workforce. And it all starts with a solid employment contract.

As such, it’s crucial to draft an employment contract that not only protects your company but also inspires trust in your employees. In this guide, we’ll walk you through exactly what it should include.

What is an employment contract?

An employment contract or agreement is a legal document that details the terms and conditions of the work arrangements between you and your worker. You both sign it after they accept your job offer and before their first day (or a few weeks into the job).

This contract establishes your rights and responsibilities, defining the employment relationship between you. They include some standard details that ensure you’re legally compliant (think compensation, job description, benefits, and employment period), and the rest is tailored to your particular employment relationship.

Why is an employment contract important?

An employment contract is important because it ensures that you and your employee comply with its terms, since it’s legally binding. As a result, you can prevent misunderstandings about rights and responsibilities, remain compliant with labor laws, and maintain consistency in the work relationship.

What are the types of employment contracts?

Understanding the different employment contract types helps you understand how legally binding they are and how well-suited they are for your employment arrangements. Here are the main ones: 

• Written: The most common type is the formal, written contract, which is detailed, signed, and legally binding, meaning that it facilitates resolving disputes.
• Verbal: Non-written, a verbal contract is the result of a discussion about the details of a position (such as salaries and benefits). Although difficult, this verbal contract can become legally binding, especially if there’s a witness to the conversation.
• Implied: Common among small businesses, implied agreements are when you hire a worker without agreeing on certain terms in a discussion or writing. Instead, your general actions and guidelines might give them certain expectations. It’s difficult to uphold them, but they’re considered legal agreements in some contexts.
• Fixed-term: Fixed-term contracts are written contracts that are effective for a specific period or until a project is completed. Employees under a fixed-term agreement should receive the same treatment and benefits as full-time permanent employees.
• Open-ended: An open-ended contract doesn’t have a termination date. Instead, it ends if either you or your employee want to end it, which renders it flexible.

What to include in an employment contract

well-rounded employment contract establishes a solid framework for your employment relationship, which promotes the thriving work culture you desire, so let’s look at its components:

1. Job title and description

What is the employee’s job title? Is the employee part of a team? Which team and department are they assigned to? Who do they report to, and who’s right above them? What does the position entail in terms of the role and its duties?

The employment contract should give defined guidelines about the employee’s key responsibilities, but it doesn’t need to include every single task. You might add a phrase like “additional duties as assigned,” which gives you the freedom to alter the job responsibilities as needed (as long as they’re minor/reasonable tasks).

Read next: How to Define Your Employee’s Job Scope (With a Template!)

2. Compensation and benefits

One of the main factors for employee retention is compensation and benefits. Ensuring transparency about them promotes employee satisfaction and trust and prevents disputes.

Your employee’s contract should include their wage amount (before applicable taxes), their payment cycle, whether their rate is yearly or hourly, the bonus system, equity options, raises, incentive opportunities, and signing-on bonuses.

As for benefits, refer to labor laws in your area to ensure compliance when you determine them. Also, mention when you’ll grant the employee access to these benefits. Is it immediately after signing or after the probation period is over?

Benefits can look like health insurance, medical leave, family leave, other paid leaves, unemployment insurance, workers’ compensation insurance, company stock options, retirement and investment plans, catered lunch, and gym memberships.

3. Start date and work location

One of the first points mentioned in an employment contract is the date when it becomes effective. It should also include the primary work location, clarifying crucial work arrangements (think remote, hybrid work model, on-site, and similar).

Additional reading: Flexible Working Policy Examples and Template

4. Termination clauses

When you write down the termination clauses, regulations that apply to your area usually heavily influence them. You should learn what the viable grounds for termination are. In other words, which actions from an employee could prompt you to let them go? What are the severance arrangements?

5. Resignation

How long of a notice period should your employees give you if they wish to resign? Does the notice period change after a while? Do you need the resignation in writing?

6. Confidentiality agreements

Confidentiality arrangements are essential to protect your company’s sensitive information and prevent employees from acting in ways that harm your business.

Before anything, ask yourself which data employees can share outside of work. Does your industry come with special circumstances that require extra levels of confidentiality (like psychiatric clinics)? 

After that, you can add clauses for confidentiality, including client contact information, supplier lists, and proprietary elements.

Relevant reading: Employee Data Management: How HRIS Can Help Achieve Accuracy and Security

7. Death and disability

Naturally, death and permanent disability terminate the employment contract. In the case of disability, the contract should include the duration after which the contract is terminated (like 30 days). Additionally, the contract should list the compensation that goes to the employee’s estate in either case.

8. Dispute resolution

You can add clauses in your employment contract about how to resolve employee disputes. What is the dispute process like? It can include measures like mandatory arbitration, mediation, and litigation.

9. Additional considerations

Finally, it’s the level of detail that determines how good an employee contract is, so don’t forget these minor yet important aspects:

Non-compete clauses

Non-compete clauses stop employees from competing with you during and after the end of their employment period for a certain duration. Consult with legal experts to confirm that your non-compete clause holds value in court.

With non-compete clauses, employees are prohibited from setting up a competing business or work for a competitor within a specified period. You can rest assured that your assets, clients, and proprietary information are safe.

Intellectual property ownership

Who owns the intellectual property of your employees’ work? What about your company’s knowledge? You can use the employment contract to make that clear. 

Add a clause about the ownership of intellectual property, including industry secrets, copyrights, patents, and trademarks. Also, a non-compete agreement can help with risk mitigation here.

What are the benefits of an employment contract?

When you understand the benefits of an employment contract, you’re more likely to invest in it and can assess the outcomes to determine the solidity of your contracts. 

For employers

As an employer, you should draft employment contracts to reap the following benefits:

Clarity and reduced risk

An employment contract makes expectations clear, so you’re less likely to have issues with your workers and resort to legal action. Your employees should understand their job functions, compensation, company goals, and procedures.

Employees who understand their roles and the repercussions if they don’t comply with them will avoid abandoning their post. This is because they know it’s grounds for examination and possible employment termination, making it likely to put your business at risk or hinder your business processes.

Protection of confidential information

As referenced earlier, an employment contract includes a clause about sensitive information. It ensures that your data is safe, your clients stay with you, and your processes are yours only.

For instance, if you run a restaurant, you’ve probably worked hard to develop your recipes and maybe even used a family secret recipe. The contract will protect your trade secrets, ensuring that customers will keep coming for your special lasagna.

Documentation for performance management

When you document the job title and description, including a detailed illustration of your employee’s tasks, you create a standard that you can hold them accountable to later on to determine how well they’re performing by comparing that to their job description.

For employees

To make an employment contract attractive for potential hires and fair to them, it should give them the following:

Security and predictability

Your employees will feel secure having guaranteed work for a specified period. There might also be severance at the end of their tenure. As for predictability, the employment contract includes your expectations for them, the actions you’ll take if they comply (such as bonuses and raises), and the actions you’ll take if they don’t.

Employment contracts also offer a certain legal security. Employees know they can use them to claim their rights. They can also refer to them to avoid legal action by not engaging in any behavior that could prompt it.

Clear expectations

Your employees will have clear expectations about their roles, working hours, salaries, paid leaves, benefits, and potential for growth in your company. This way, there’s less room for misunderstandings and dissatisfaction later on. Your employees are less likely to have issues with their jobs because they know what they signed up for.

For example, they’ll know that they can expect a promotion after two years if they reach certain performance milestones, which should boost satisfaction and employee engagement levels.

Potential for negotiation

When the termination date for your employee’s employment contract approaches, they have a chance to negotiate the terms of its renewal. They might ask for a raise or added benefits.

For instance, they might do market research to find that their current rates don’t align with market rates and request a raise accordingly. As an employer, you might find that the cost of retaining them for a higher rate is worth it and comply with their demands.

Optimize Employment Contract Management and Compliance

All-in-one HR software like Omni is a powerful tool for unifying all of the disparate employee data scattered across your company. As a single source of truth for employment contract management, HRIS streamlines your HR processes and makes them more efficient.

Powering Asia’s fastest-growing, modern companies, Omni’s employee database software scales alongside your company so you can customize and leverage the system to meet your evolving employee data management needs while ensuring compliance with regulations. 

With a full suite of modules to support every aspect of your business, Omni liberates HR teams from administrative cycles by automating the entire end-to-end employee life cycle — from recruitment and onboarding to employee engagement and payroll and beyond — allowing you to redirect your time to strategic initiatives that drives your business’s growth.

Omni’s intuitive and fully customizable platform integrates with your team’s favorite tools for a seamless and timely adoption. And at only $3/employee/month, you can leverage HR automation to decrease administrative costs.

Book a demo with our team today to learn how Omni can help transform your small businesses HR processes.

Every year, organizations worldwide witness approximately 2.3 million workers experiencing workplace accidents or diseases. The International Labour Organization (ILO) report also highlights the dangers of safety negligence at workplaces. With such prevalent risks, employers are obligated to have health and safety protocols and documentation in place. One effective method to safeguard the well-being of employees is through the implementation of comprehensive emergency contact forms. When an employee is hurt on the job, supervisors can inform relatives or friends of the individual, ensuring they receive immediate assistance. 

This article explains the importance of having emergency contact forms in the workplace, and on top of that, we have provided a free emergency contact template to make collecting medical details and contact information easier for employees and HR leaders. 

What is an emergency contact form?

An emergency contact form is a vital document used by organizations to collect emergency contact information and medical history from their employees. This document is collected during the onboarding process and usually requires the employee to fill out a few key details, including their primary and secondary emergency contacts, along with any pertinent medical history or conditions.

It is also considered a workplace safety best practice, as the emergency contact form helps to protect both the employee and employer in case of an accident or medical emergency. 

For example, an employee at a construction site suddenly experiences an allergic reaction. With access to the individual’s emergency contact information, the company can immediately notify the designated contact, who can provide crucial medical details or rush to the scene with necessary medication. This swift action brings about the importance of maintaining updated emergency contact information to ensure prompt assistance and enhance workplace safety.

Additional resource: The Complete Employee Onboarding Checklist

Why is it important to have an emergency contact form?

Here are several reasons why you should make it a priority for your employees to fill out emergency contact forms. 

Faster communication during emergencies

Clear communication is vital during a workplace emergency. Having up-to-date employee contact information allows employers to reach loved ones and emergency services faster. This reduces confusion, gets help to employees quicker, and demonstrates the organization’s commitment to employee well-being. Effective communication can be the key to turning a crisis into a successful resolution.

Reduced stress

Knowing that there’s a plan in place for emergencies can alleviate stress for both employees and employers, providing reassurance that help can be summoned efficiently if needed.

Improved decision-making

Access to emergency contact information enables employers to make informed decisions during critical situations, such as determining whether to seek medical help or contacting family members.

What information should be included in the emergency contact form?

An employee emergency contact form should collect critical information that would be helpful in case of an emergency involving an employee. Here are the key elements to include:

• Employee’s full name and identification: A basic yet essential starting point to ensure accurate identification.

• Contact information of designated emergency contacts: Phone numbers, addresses, and any alternative means of communication.

• Relationship to the employee: Knowing the relationship helps in understanding the dynamics and urgency of the situation.

• Medical information or allergies: Critical details that could impact the type of assistance required.

Here is how an emergency contact form example can look like: 

Employee Information

Employee Name

Department

Emergency contact information

Primary Contact Name

Relationship to Employee (e.g., spouse,   parent, sibling)

Phone Number (work, cell, home)

Email Address (optional)

Secondary Contact Information (optional): Include the same details as above for another person to be contacted.

Medical Information (Optional)

Physician Name and Contact Information

Health Insurance Provider Name and Policy Number (optional)

Allergies to medications (optional)

Any other relevant medical information (with employee consent)–this could include pre-existing conditions or current medications.

Form Completion Details

Date

Employee Signature

To make it easier, we have created an emergency contact form template that you can customize to your organization’s needs. This allows your employees to conveniently fill out the form electronically anytime, anywhere.

When to reach out to an employee’s emergency contact?

Knowing when to reach out to an employee’s emergency contact is vital for workplace safety. With emergencies possible at any time, it’s crucial for companies to maintain accurate contact information. However, the question arises: “When is the appropriate time to contact an employee’s emergency contact?”

Employers should contact an employee’s emergency contact in various scenarios, including:

Medical emergencies

When an employee falls sick, faints, or is in need of medical attention, having their contact information allows employers to quickly reach out for help and assistance. 

Employee is absent from work

In the event where an employee is absent from work without prior notice and cannot be contacted, employers can notify appropriate parties, such as emergency contacts, family members, and authorities. This can only be done when there is valid emergency contact information; otherwise, the employer may face challenges in promptly addressing the situation and providing the necessary support.

Work accident with unknown status

In the unfortunate event of a workplace accident resulting in physical injury to an employee, having accurate contact details enables the employer to promptly notify emergency services, initiate first aid procedures, and inform relevant parties such as supervisors, HR personnel, and family members, ensuring the injured individual receives the necessary support and medical attention.

Other important considerations

• Severity of the situation: Always prioritize the employee’s well-being. If the situation seems life-threatening, call emergency services first. The emergency contact can be notified afterward.
• Employee consent: Before contacting an employee’s emergency contact, make sure you have their consent. This ensures that their privacy and personal boundaries are respected. A good practice is to include a consent clause within the emergency contact form template to ensure compliance in the event where an employee is unconscious or unable to provide consent. 
• Follow protocols: Your organization should have established protocols for emergency situations. Ensure you follow these guidelines when deciding to contact an emergency contact.
• Use best judgment: Consider all the details of the situation and use your best judgment when deciding whether or not to reach out to an emergency contact. 

Best Practices for Managing Emergency Contact Forms

1. Communicate clearly the purpose of the emergency contact form

To prevent employees from being skeptical about the emergency contact form process, what HR leaders can do is to conduct training sessions. This training also goes for ensuring compliance with filling out the form and keeping information up-to-date.

During the session, they should explain the importance of the emergency contact form in ensuring the safety and well-being of employees. Additionally, HR leaders can emphasize the potential impact of having accurate emergency contact information on response times during critical situations. By providing clarity and addressing concerns through training, employees can be encouraged to actively participate in the process and maintain updated emergency contact information.

2. Assure employees that their information is confidential

When it comes to managing employee data such as emergency contact forms, it is important to provide employees with the assurance that their information is kept confidential. This is essential for building trust and maintaining a positive workplace culture. Ensure that only authorized personnel, like HR or designated managers, have access to these details. 

If sensitive contact information or medical records of an employee are disclosed or used inappropriately, it can cause significant distress and harm. They can become exposed to potential discrimination and stigmatization in the workplace. Employers can also face legal penalties and liabilities for this act alone. Therefore, it’s crucial to make every effort to minimize inappropriate use and disclosure of an employee’s private information.

3. Make the form easily accessible

In case of any changes, such as a new phone number or address, employees should be provided easy access to emergency contact forms. This helps them to promptly update and retrieve their contact information. 

By making these forms accessible, you’re preventing delays in reaching out to emergency contacts during critical situations. You’re also providing a smooth employee experience, ensuring that they can quickly and conveniently access the forms when needed, whether it’s through a self-service portal, designated physical locations, or mobile applications. Additionally, through a centralized and secure system, employees can easily locate and access their records anytime and anywhere. This contributes to a proactive approach to maintaining safety in the workplace. 

4. Encourage employees to update their emergency contact form

In the case of a workplace accident, afflicted employees cannot receive help if their contact information isn’t accurate and up-to-date. An employee’s information can change over time due to varying factors. For instance, if an employee changes their address or gets married and wishes to add their spouse as an emergency contact, it’s essential to update their emergency contact form accordingly. 

5. Conduct periodic reviews

Designated individuals should review and update the emergency contact list of employees on an annual basis, making updates and revisions as needed. This ensures that medical records and emergency contact forms are accurate, complete, and relevant. 

Efficiently Manage Your Employee Records with Omni

All-in-one HR software like Omni is a powerful tool for unifying all of the disparate employee data such as emergency contact forms scattered across your company. As a single source of truth for employee data management, HRIS streamlines your HR processes and makes them more efficient, especially when accessing emergency contact forms during a crisis.

Powering Asia’s fastest-growing, modern companies, Omni’s employee database software scales alongside your company so you can customize and leverage the system to meet your evolving employee data management needs while ensuring compliance with regulations.

Omni’s intuitive and fully customizable platform integrates with your team’s favorite tools for a seamless and timely adoption. And at only $3/employee/month, you can leverage HR automation to decrease administrative costs.

Not ready for automation?

Book a demo with our team today to learn how Omni can help transform your businesses employee data management processes.

Screening processes are integral to HR recruitment practices, ensuring that you hire the best talent. According to ASDReports, “the Asia Pacific employment screening services market is propagating at a CAGR of 9.37% from 2019-2027. India, China, Japan, Australia, South Korea and the Rest of Asia Pacific are considered for the market study.”

If you’re looking to facilitate your screening processes, work experience documentation via a certificate of employment letter and other verified documents helps.

Aside from helping HR leaders, this certificate also facilitates securing loans, getting approved for rentals, and qualifying for grants for employees. Keep reading to learn about the COE meaning and how this form can serve you.

What is a certificate of employment and who is eligible? 

To answer your question of “What is COE?” and unpack the COE meaning, it’s a formal documentation of the working history of a current or past employee in your company.

The certificate of employment letter is typically short and to the point. It includes the employment details, such as the employer’s name and details, and the employee’s personal information such as employment dates and employment status.

Under the Department of Labor and Employment (DOLE), every employee is eligible to request for an employment certificate letter as and when required. They also have a right to an intermediary certificate if they request it.

There are exceptions when it comes to COE, meaning that some individuals aren’t eligible for a certificate of employment letter. These may be contractual and project-based workers, and workers whose employment term you’ve terminated with a legal or fair cause.

What information does a certificate of employment include?

With that understanding of the COE meaning, what is a COE composed of? There’s no standard format, but it should include the following details:

• Employer’s data: Such as company name, logo, contacts, and address and the employer’s name and contact information.
• Employee’s data: The employee’s first name, family name, date of birth, and place of origin.
• Employee’s curriculum in the company: A list of the positions, duties, and activities of the employee in the company and the start and termination of their employment term.
• Additional information: Additional details requested by the letter’s recipient (like the employee’s overall pay) should be included in the letter.
• Certificate-related details: The signatures of company authorities, the certificate issuance date, and the company stamp for verification.

What is the purpose of a certificate of employment?

Now, what is COE meant to achieve exactly? The purpose of this certificate is to authenticate any applicant’s data or verify data for past employees. To illustrate, you can use a certificate of employment letter:

To prove employment

What is COE if not proof of employment? An employee may request a COE, meaning that their employment in your company will be verified and that their work experience will qualify them for future positions. This way, future recruiters can fact-check their employment history.

For salary verification

What is COE able to prove about your employees’ finances? Future employers might want proof of your employee’s salary. Also, loan and mortgage providers, banks, and landlords might request a certificate of employment to verify their claims about their employment and salary. This way, they can assess their ability to make the required monthly payments.

Demonstrate length of service

The certificate of employment letter can also serve as a verification of the length of service for your current employees or potential hires. Their years of experience prove that they’re equipped for a certain position during a candidate assessment process.

When can employees request for a certificate of employment?

Employees may request for a COE under varying circumstances. However, here are some common examples when an employee may request for one. Understanding these situations allows you to better prepare the documents required by your employees:

Job applications

Job applications are some of the most common scenarios where employees will request for a certificate of employment letter as Applicants need to prove their work experience.

This step acts as a subtle background check on their job performance. It can happen during the final stage of recruitment, increasing the trust of recruiters in applicants.

Loan or credit card applications

An employee may request a certificate of employment letter from you because a loan provider or bank requested it, in which case you’ll need to add their current pay.

But what is COE going to do to help them secure a loan, get approved for a mortgage, or adjust their line of credit? An employee can present a COE to indicate their ability to make payments on time, and the claims they’ve made about their income sources and employment status are authenticated.

Visa applications

Most immigration offices require a certificate of employment letter. Your employees applying for an employment visa might request a COE to prove that they are legally employed to work in the country that they are applying for.

Furthermore, the COE is also a form of verification that the applicant has the needed funds to finance their stay in the country, and will likely not stay past the travel period they’ve declared because they’re committed to a workplace.

Renting an apartment

Landlords may require a COE, meaning it serves as confirmation that your employee has a job. What is COE going to prove to a landlord? It proves that they have an income source and can pay rent monthly. In that case, you may need to include your employee’s current pay in the certificate of employment letter.

Government Requirements

What is COE in the context of government paperwork? Government bodies can request a certificate of employment letter to verify the identity of your employee. For example, they might be applying for a governmental program, which requires a COE, meaning it acts as a governmental document for submission purposes.

Requirements for Obtaining a Certificate of Employment

What is COE going to cost employees in terms of requirements? Understanding these three requirements will help you procure a certificate of employment letter in time.

Employee request

It starts with a request from your employee. In a relatively small company, the person responsible for creating the certificate of employment letter could be an office manager, direct supervisor, or accountant. In a large company, the HR department typically handles these requests.

This request comes in the form of a letter, but what should it include? It should state that the employee needs a certificate of employment letter and the reason for the request. It should also detail all the information that should be included within the certificate. Finally, they may add a specific date by which they need the certificate of employment letter.

Employer verification

Now it’s your turn to verify the certificate of employment letter. After all, what is COE if not verified? HR professionals or employers may write it, and the signature of authorities will verify the work details listed about the employee in the COE, meaning that the document becomes legally binding.

Omni Tip: Information within the certificate of employment letter must be truthful and based on your employment record. The Department of Labor and Employment (DOLE) can take actions against companies that provide false information.

Processing time

What is COE going to require in terms of time? There’s no specific processing time for issuing a certificate of employment letter, meaning that it differs according to factors like your internal policies, and any issues related to the certificate of employment letter.

For example, companies based in the Philippines should refer to the DOLE Labor Advisory No. 06 Series of 2020, which states: “a Certificate of Employment be released by the employer within three (3) days from the time it was requested by the employee.”

Otherwise, your employee might state a timeframe for the issuance of their certificate of employment letter. This may be due to a work visa deadline or applying for an educational program by a certain date.

Examples of a Certificate of Employment for Employee

If you’re still confused about “What is COE?” or COE meaning, we have provided a free certificate of employment template to customize and cater to all your employee’s needs. 

Aside from that, here are two common examples of when a certificate of employment will be required by an employee:

For an Employer

In this example, the point of the letter is to verify your previous employee’s employment period, position and salary. 

[COMPANY LOGO HERE]

CERTIFICATE OF EMPLOYMENT

This letter confirms that Rachel Tan was employed at NW Consulting Firm from 4 September 2022 till 21 March 2024, as an investment consultant with a monthly salary of SGD$ 5,000. She has displayed good work performance, a positive attitude towards the work environment, and great talent in handling clients.

If you require additional information or have any further questions, please contact me at 2437 7754 or reach me via email at s.liew@nwconsulting.com.

Sam Liew

Human Resources Manager

For a loan provider

When constructing a COE letter for your employees with the purpose of submitting it to a loan provider, it is crucial to include your employee’s start date and current salary to highlight their ability to repay the loan. 

[COMPANY LOGO HERE]

CERTIFICATE OF EMPLOYMENT

This letter confirms that Chloe Wong is a current employee of Quick Fix Solutions as an office manager, with a monthly salary of ₱38,500. Ms. Wong has been employed in the company since July 2021.

If you require additional information or have any further questions, please contact me at 5333 8749 or reach me via email at rsim@quickfixsolutions.com.

Rudy Sim

Human Resources Manager

Enhance Employee Satisfaction with Omni

Whether you’re an employee or business owner in Philippines, Omni makes it easier than ever to support employees requesting a certificate of employment letter. 

Our all-in-one employee database makes gathering the necessary data required to create the certificate of employment seamless and timely. With customized workflows and automated reminders, HR can help empower employees to manage the deadlines and documentation requirements for their certificate of employment request. A centralized document management solution and real-time data makes it easy for employees to access salary information and produce reports and documents necessary for verification.

Book a demo with our team to learn more about how Omni can enhance your employee satisfaction through streamlining your certificate of employment requests. Not ready for automation yet? Download our Certificate of Employment template now!