By Steven B. McKinney

McKinney Consulting Inc.

There's an old saying that to a man with a hammer everything looks like a nail. Conversely, to an executive bent on excellence, anything in the company can become one more blade in his "Swiss Army Knife of Leadership." Personnel Records can be just such a blade.  When looked on as a resource rather than a burden, a lot can be done with personnel information and record keeping.   Read on

For one thing, personnel files often contain the leads a leader needs to determine the strengths and weaknesses of his team. Properly maintained and designed, personnel files are ripe for analysis; yielding hidden information on many of the aspects of the human assets of the organization executives didn’t know they could get at.

Creating and managing robust personnel information systems is not rocket science. With minor changes for industry and function, most good systems look alike.

These records should be easy to read. Many documents in Korea may be (or in some organizations must be) translated into English as English is still the main language of business for multinational companies around the world. This puts everyone on the same language footing. It doesn’t mean that personnel records should be sent out of the country, however. This may not only be bad privacy management, it may be illegal.

These records should be easy to retrieve. Hard copy files alone are not acceptable or safe. Information must be electronically accessible so that it can be used and analyzed as needed.

The contents of these records should be accurate, reliable, and consistent. These are important historical documents that are often referred to in order to disburse benefits and sometimes used in support of or against legal claims. A few years ago a senior leader in Korea was let go due to "inaccurate" information being found in his personnel files.

These files are confidential and secured for the protection of the employee and the company. Organizations need to keep records locked and secured at all times with only those authorized to see them able to access them. Locked filing cabinets and secure electronic information systems are minimums. A clear process about who does and who does not have access is the crucial determinant of security.

Forward looking organizations look at their short term needs as well as their long term requirements. The record keeping format, process, filing, and storage should be designed for expansion as the organization grows. The needs of a start-up with twenty employees’ verses a two hundred head count is quite different. More policies are required in a larger organization and more administrators are involved. Organizations often track different metrics depending on their information and operational management goals.

Part of the costs of these personnel records is the maintenance aspect. This brings up the issue of size or content. There are a few things to consider when determining the content. The most obvious is the legal requirement. According to the US Chamber of Commerce:

"There is no law that requires you to keep a personnel file on each employee. Specific employee records are what      you must retain under federal laws. The information that you keep depends on what the information is and which law covers the retention of that particular information. Laws may also dictate that certain information must be kept but that it cannot be kept with other personnel information for confidentiality and privacy reasons.

Technically, you don't even need a "file." If you have a better system for keeping all the information straight, use it! Many are opting for computer files. However, you must retain certain pieces of information that an employee or applicant must complete and sign, like the W-4 Form, the I-9, and the job application, and those obviously can't be used in a computer file (unless you scan them in). As a practical matter, personnel files are the easiest means of keeping track of employee information to comply with those requirements and to keep track of information for your own business purposes."

If you live and work in Korea there is no law either that requires you to keep a specific personnel file. However, salary documents must be maintained for at least two years and it is advisable to keep signed copies of employment agreements.

Keeping information beyond that required by can be beneficial for making more informed decisions about personnel policies, recruitment, training, equal opportunities, staff development, dismissal, and protection. If you have inadequate records problems can arise when dealing with absence levels, labor turnover, sickness, lateness, and discipline.

Separate files that indicate personal details like emergency contact information of next of kin and some close associate or friend; qualifications that have been earned and documents; additional documentation of the individual’s skills, and possibly work-related disabilities can be quite helpful.

Additional information like a resume indicating the employees work history and a copy of their current employment contract should be kept in the centralized files. This information needs to be referenced when considering training and keeping promises made to the employee. Also, attendance records are a must to ensure fair and transparent implementation of employee benefits. Certificates of training completions and degrees are helpful and required if you are a foreigner working in Korea to gain the proper work visa.

Now that you have your files organized and protected let's put them to use. A careful analysis of the personnel files can lead you to the knowledge of the quality of human resources that you have.

Questions like:

What are the average years of service per individual, department, function, and leader? How many members of each team have higher-level education? What degrees? From what universities did they graduate?

What are the training needs when assessing the skills, education, and work experience of your staff? Who are your strongest people and are they properly being utilized? Is everyone well matched for their role and well matched to the job descriptions for them?

Operationally, who are your weakest people and what will it take to make them stronger? What kind of disciplinary actions have we had in the past? Is there a trend that we should be aware of? Are there any hiring patterns in any area that we should be aware of …for example, the hiring of many personnel from the same school or prior company?

Strategic decision making can be aided by understand what current human assets will and will not allow. What other business opportunities can you explore now knowing what talent you have? What businesses should you stray away from knowing your teams limited experience and weaknesses?

About the author: Steven B. McKinney is the founder and president of McKinney Consulting Inc., Korea's most trusted executive search firm. McKinney Consulting offers a comprehensive range of personalized, professional resource services to a wide cross-section of companies operating in Korea and Asia. Mr. McKinney is a globally established commentator on international management. He can be reached at This email address is being protected from spam bots, you need Javascript enabled to view it