Employees leave. It happens. While employee turnover rates vary by industry, CompData Surveys says the average turnover across all industries in 2016 was 12.8%. For retailers, turnover rates skyrocket to as high as 65% according to the Hay Group. Yet, when employees walk out the door, the support responsibility for HR and Payroll doesn’t end. In fact, the headaches may just be starting.
Government regulations require employers to keep employee pay and tax information available for a minimum of three years in most cases. However, today’s heightened data security concerns hinder many employers’ ability to provide the required access for terminated employees. A growing number of enterprise IT departments are restricting access to current HR systems for former employees to limit potential security breaches.
What’s an HR and Payroll team to do?
Here are some options:
- Maintain limited access to your existing system. Some HR systems are more flexible than others with setting up new user profiles and workflows. You could investigate allowing former employees to continue to access your current HR systems, while restricting access to most functionality within your HR platform. This would prevent disgruntled employees from attempting to access sensitive information to potentially use it as a form of retribution.
- Benefits call center. If you either manage your own Benefits Center or are supported through a third-party provider, having company alumni call the Benefits Center to request their records be mailed to them could be an option. This approach does prove to be labor-intensive for employers and takes longer than expected for former employees as it’s not the most efficient solution.
- Self-Service Online Portal. The greater need for data security has led to another option for many companies. Employers can provide access to required historical employee information for terminated employees using a third-party self-service portal. Terminated employees can view and access their pay and tax statements as needed without requiring the support of resources from your organization. Access can be set up easily as part of the offboarding process. Since it’s set up as a stand-alone portal, IT teams can be assured their HR systems are properly protected. After hearing from many clients, CIC Plus introduced our Cloud Transition Service to meet this growing need. CTS is also used to store historical employee data—for both active and termed employees—for companies on the heels of a platform change.
Taking care of former employees’ information carries risk and can be challenging with today’s mobile workforce, but it doesn’t have to be.