Human Resources handles some of the most sensitive information in any organization.
Social Security numbers. Direct deposit details. Performance reviews. Medical accommodations. Disciplinary records. Background check results.
Every time someone is hired, reviewed, disciplined, or let go — paperwork is created. And most of the time, that paperwork sits in a filing cabinet or a shared drive with no clear plan for what happens to it next.
That’s a problem.
Why HR Records Are a High-Value Target
HR files are among the most valuable documents a business generates — and among the most poorly managed.
Unlike financial records, which usually have a designated accountant watching over them, HR files get spread across departments. A manager keeps a performance review. An office admin holds onto a job application. Someone’s I-9 is filed separately from everything else. Termination paperwork ends up in a box in the back office.
No central oversight. No retention schedule. No plan for destruction.
That’s exactly the kind of environment where sensitive employee data gets lost, mishandled, or thrown out improperly.
What Laws Actually Say About HR Records
HR recordkeeping isn’t optional — it’s legally mandated, and the rules vary by document type.
Here’s a general breakdown of federal retention requirements:
- I-9 forms — must be kept for 3 years after hire or 1 year after termination, whichever is later
- Payroll records — minimum 3 years under FLSA; 7 years is the safer standard
- Employee benefits records — 6 years under ERISA
- OSHA injury and illness records — 5 years
- Job applications and hiring records — 1 year from the date of the decision
- Background check records — 5 years or the duration of employment, whichever is longer
- ADA and FMLA medical records — must be kept separate from personnel files; 3 years minimum
Michigan employers also need to be aware of state-level requirements that may extend some of these timelines.
Destroying records too early can be just as damaging as never destroying them at all — especially if a former employee files a complaint or a dispute ends up in litigation.
The Risk of Keeping HR Records Too Long
Most HR departments err on the side of keeping everything.
It feels safe. But it isn’t.
The longer you hold onto sensitive employee data, the longer that data is at risk of being accessed, stolen, or mishandled. Old files stored in filing cabinets, back offices, or unlocked storage rooms aren’t protected. They’re just sitting there.
If an employee’s personal information is exposed because it was kept longer than necessary and stored insecurely, your organization faces real liability — not just embarrassment.
A proper retention schedule means you know exactly when each record type can be destroyed, and you destroy it on time. Not years later.
Where HR Departments Go Wrong
After working with businesses of all sizes, a few patterns come up repeatedly.
- No written retention policy — If your team doesn’t have a documented retention schedule, decisions get made inconsistently — or not at all.
- Mixing active and inactive records — Terminated employee files sitting alongside current employee files create confusion and increase the risk of unauthorized access.
- Relying on office shredders for volume destruction — A desktop shredder isn’t equipped to handle large purges. It’s slow, produces strips that can sometimes be reassembled, and leaves no paper trail proving documents were destroyed.
- Keeping digital and physical records on separate systems — HR departments increasingly deal with both paper files and electronic records — often without a coordinated plan for either.
- No certificate of destruction — If you can’t prove documents were destroyed, you can’t prove you were compliant. That matters during audits and legal disputes.
What a Better HR Records Program Looks Like
A strong HR records management program covers the full lifecycle of every document — from the day it’s created to the day it’s destroyed.
Step 1: Audit what you have — Walk through your files, digital folders, and storage areas. Identify what exists, where it lives, and how old it is.
Step 2: Build a retention schedule — Match each document type to its required retention period. Write it down. Share it with your team.
Step 3: Separate active and inactive records — Current employee files should be accessible. Terminated employee files should be archived — ideally offsite — with restricted access.
Step 4: Go digital where it makes sense — Scanning active HR records makes them easier to retrieve and reduces physical storage needs. Cloud-based storage with access controls adds another layer of security.
Step 5: Destroy records on schedule — When a document reaches the end of its retention period, shred it — with a certified provider that issues a Certificate of Destruction.
Why Offsite Storage Makes Sense for HR Records
Storing inactive HR files offsite removes them from your day-to-day environment while keeping them accessible when needed.
A professional records storage facility offers:
- Controlled access — only authorized personnel can request files
- Barcode tracking — every carton is logged and traceable
- Climate-controlled environment — protects against physical damage
- Fast retrieval — files can be delivered or scanned on demand
- Secure destruction — records are shredded when their retention period ends
For HR departments managing years of terminated employee files, offsite storage frees up office space and significantly reduces risk.
Don’t Forget Digital HR Records
Electronic HR records carry the same risks as paper ones — sometimes more.
Old HR software, employee databases, and shared drives often contain data that’s never been properly reviewed or purged. When computers are retired or replaced, that data needs to be physically destroyed along with the hardware.
Deleting files isn’t enough. Hard drives must be shredded.
How Corrigan Helps HR Departments Stay Protected
Corrigan Record Storage has been helping Michigan businesses manage sensitive records for over 30 years.
For HR departments specifically, Corrigan offers:
- Secure offsite document storage with fast retrieval options
- Document scanning to convert paper HR files into searchable digital records
- NAID AAA Certified shredding for both paper documents and hard drives
- Certificate of Destruction provided after every shredding job
- Flexible scheduled shredding programs so nothing piles up
Whether you need a one-time purge of old terminated employee files or an ongoing program to manage records throughout the year, Corrigan builds a solution around your needs.
The Bottom Line
HR files don’t manage themselves.
Without a clear plan — for storage, retention, and destruction — sensitive employee data accumulates, compliance risk grows, and the cost of fixing it later is far higher than the cost of getting it right now.
A proper HR records management program isn’t complicated. It just needs to be intentional.
Ready to Get Your HR Records Under Control?
Corrigan Record Storage provides secure document storage, scanning, and certified shredding for HR departments across Southeast Michigan.
Contact Corrigan today to build a records management plan that protects your employees and your business.
Call 248-344-9185 or visit corriganrecords.com to request a quote.