3 riskiest documents in staffing firm filing system

The mismanagement of both physical and digital documents can cost staffing firms much more than an angry candidate or employee. Poorly organized documents can cause many possible compliance issues and lots of incomplete or inaccurate forms that aren’t found until it’s too late. Let’s take a deep dive into each type of documentation that can cause you and your team massive headaches.

1. Old I-9 Records

According to the Society for Human Resource Management (SHRM), staffing firms must retain original I-9 forms for 3 years after a candidate is hired, or 1 year after a candidates employment ends, whichever is longer.

Did you know that if you store I-9 forms for longer than the timeframes listed above and you get audited, your staffing firm will be held liable for ALL RECORDS ON FILE even if those people don’t work for your firm anymore? YIKES! We’ve heard some real horror stories in regards to I-9 compliance, and we’re sure that you have, too.

Solution: Set up a purging schedule. Ideally destroying out-of-date I-9 forms would be done daily, but if you aren’t using software to store your I-9 data, it’s more likely that you will be doing this once per month or even once per quarter.

How can this be done easily if you’re storing physical documents? First, keep all completed I-9 forms in a separate location from other employee documents. You should then set up some sort of organizational structure, such as different filing cabinets for current employees for whom re-verification isn’t necessary, one for employees you know will require re-verification, and a third for terminated employees. For terminated employees, you should mark the end of the retention period on the front of the I-9 at the time of their termination. The better organized you are, the more likely you will be to rid your staffing firm of old, possibly incompliant forms and will limit your exposure to lawsuits and allegations of wrongdoing.

2. Incomplete Onboarding Documents

Let’s face it. Most recruiters view professional accomplishment by closed reqs. Staffing firms find, more often than not, that recruiters color outside the lines to get candidates over the finish line. For example, recruiters have been caught removing critical documents that require signatures or not physically inspecting documents for I-9 verification. And because of that, there isn’t a lot of trust placed on recruiters when firms don’t have streamlined, stringent onboarding processes in place.

3. Overly Visible PII (Personally Identifiable Information)

What is classified as PII? PII is any data that could potentially identify one person from another. For example, PII can include a full name, address, telephone number, email address, birthday, criminal record history, Social Security number, any other form of a national ID number, and so much more. Any staffing firm or organization, that doesn’t protect the PII of its employees or candidates risks incurring a significant financial cost or a negative blow to its reputation.

This is why data redaction is so important. Data redaction is the suppression of sensitive data. Some examples of this would be encrypted data and data fields, 2-way authentications, and software personalities.

 

EmployStream’s onboarding and candidate engagement software was built to automate and simplify processes such as these and to help staffing firms stay compliant with state and federal regulations. It also provides a streamlined onboarding platform that doesn’t allow candidates or recruiters to skip steps due to stringent workflow automation.

If you’re ready to go paperless, improve compliance, and reduce liability, give us a call.