Switching from one Human Capital Management (HCM) system to another may appear straightforward, but the reality of moving employee records often proves much more complex. Effective document management isn’t just recommended – it’s legally necessary and crucial to maintaining smooth operations.
Why Compliance with Employee Document Retention Matters
Keeping employee files organized ensures your business complies with essential regulations set by agencies like the IRS, EEOC, DOL, and OSHA. Each document type has specific retention rules:
- Payroll Records: Retain for 3 years.
- Performance Reviews and Disciplinary Records: Maintain for 2 years after an employee’s departure.
- FMLA Records: Keep for 3 years.
- OSHA Logs (300, 300A, 301): Store for 5 years.
- Benefits Enrollment Forms: Hold for 6 years.
Properly retaining these documents protects your business from potential legal issues, costly audits, and fines resulting from missing or improperly maintained records (SHRM, 2023).
The Real Risks of Non-Compliance
Failing to adhere to retention guidelines can lead to serious consequences, including hefty fines, legal fees, reputational damage, and disruption of day-to-day operations. For example, mishandling I-9 Forms – required to verify employment eligibility – can trigger significant fines during audits. These forms must be kept for either three years after hiring or one year post-termination, whichever is later (SHRM, 2023).
The Hidden Challenges of Document Transfers
Businesses often underestimate the complexity of transferring historical documents such as payroll records, performance reviews, contracts, and training certificates during HCM system transitions. Doing so manually, especially at scale, can be extremely time-consuming and error-prone.
Consider a typical scenario:
- Locating and downloading a document: approximately 20-40 seconds.
- Saving to a shared drive: another 10-20 seconds.
- Uploading and attaching the document to a new system: an additional 30-60 seconds.
In total, each file transfer can take between 1- 2 minutes. With hundreds or thousands of documents, this becomes overwhelming, introducing significant risks of errors and compliance oversights.
How PuzzleHR Makes Document Transfers Easy
PuzzleHR’s Document Transfer Service directly addresses these challenges, offering a secure, efficient, and precise method for moving employee documents. PuzzleHR simplifies the transition process through:
- Tailored Transfer Plans: Customized to your specific compliance needs and operational requirements.
- Secure Data Handling: Utilizing advanced security measures to protect sensitive employee information.
- Validation and Integration: Carefully transferring, verifying, and accurately integrating each document into your new system.
PuzzleHR’s streamlined service converts a complex, risky manual process into a secure, seamless, and compliant transition.
Insights from Industry Experts
Industry research underscores the value of organized document management. The Society for Human Resource Management (SHRM) highlights that structured record-keeping significantly reduces compliance risks and enhances operational efficiency, recommending digitized solutions for improved security and accessibility (SHRM, 2023).
Moreover, Deloitte’s Human Capital Trends report emphasizes that companies adopting streamlined digital processes dramatically reduce administrative burdens, freeing HR teams to focus more strategically on key business initiatives (Deloitte, 2025).
Transition Confidently
As you switch between HCM systems, proactively managing employee documents is essential for compliance and operational effectiveness. With PuzzleHR’s Document Transfer Service, your records move securely and accurately, ensuring business continuity and peace of mind.
Take control of your HCM transition – because staying organized isn’t just smart; it’s essential to your company’s success.
References:
- Society for Human Resource Management (SHRM). (2023). Federal Record Retention Requirements.
- Deloitte. (2025). Global Human Capital Trends Report.
