What are the Necessary Components of Document Retention Policies?

The age of file cabinets storing thousands of paper documents has passed, and today’s businesses must create and implement Document Retention Policies to make certain their companies can store documents securely. The policies are a necessary component of corporate records because, even though there is no law about document storage that is universal, there is an expectation about the availability of information, especially under litigation.

Why Document Retention is Relevant

According to LexisNexis, 99 percent of all documents created today are stored electronically. That includes the billions of emails that are generated, instant messaging, documents created on Blackberries, information on data recorders and forms and documents on websites. Aside from the fact that storing everything in paper form is expensive, the mountain of data would be difficult to index and it would be time-consuming to locate one form. Because so much of business communication is performed electronically, paper storage is no longer relevant. Companies must have formal policies of how they retain documents so that there can be uniform methods.

There is no absolute standard for retention, but there are certain governmental regulations about certain documents.

What goes into a Document Retention Policy?

First, the system should identify the manager and the servers used to store the data. One person should ultimately be responsible for the retention system.

Second, you need to spell out which documents are kept. Employee data, for example, such as training, compensation and benefits, positive and negative citations and evaluations should be retained. You also need to keep documents that delineate your company safety and maintenance policies and records of repairs and insurance claims. You should retain a copy of your training manual, your tax records and any legal papers as well.

The third component of a retention system is a statement about how long documents are kept. In the event of litigation, this could be vital because “discovery” cannot be expected of documents that are ten years old if your company has a policy of destroying them after three years. Sometimes, too, if you don’t destroy documents in a timely manner, data can surface that is irrelevant and out-of-date.

Systems should have an index as well. This “road map” of the virtual storage will enable the quick and sufficient location of files. Retention systems also need to explain how files will be destroyed. Paper documents can be shredded or burned, but digital data storage allows multiple copies of documents to exist on different servers and in different files. A good retention system will detail how all copies can be located and destroyed.

If Procedures are Not Followed

Different employees may enter digital documents into the system in different manners, and that is acceptable. Retention systems must be flexible enough to store different kinds of data. The system must also be easy enough for everyone to follow it, and companies need to train employees in the policy and its utilization. If, however, documents are being destroyed too soon or kept too long, if may people can authorize system functions or if there are other deviations from the procedures in the formal system, there must be a way of enforcement.

There are governmental and legal constraints on the way corporations conduct business. In the event any company procedures are called into question, or in the case of a legal suit, they have to be able to demonstrate accountability and responsible business practices. That is why these components, written into formal Documnt Retention Policies, are so important.

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