How Records Management Could Protect Against Lawsuits
If productivity and operational gains aren't enough incentive for companies to begin practicing better records management programs, then maybe they should consider the benefits for protecting the organization during litigation.
According to a recent Business Management Daily report, a company with an effective records storage system in place will have improved access to information that can be used as defense during a lawsuit. This is especially true for employee performance documents, the report stated.
"That's one of the most important reasons to keep detailed and meticulous records on employee performance," it said. "You want to be ready to show that your former employee was terminated for good cause and nothing else."
Business Management Daily gave the example of a company facing a lawsuit filed by a former employee who alleged sexual harassment played a role in her termination. The employee levied the charges following a poor performance review. She was transferred out of the situation, but was subsequently fired when her performance did not improve, the report stated.
During the trial, the law firm was able to produce review records showing the former employee consistently fared poorly. She was ranked 2 on a scale of 1 to 5, low to high, and her review stated that she "needs to work on her time management skills. She tends to take on more than she can handle and she refuses to take responsibility for her mistakes," according to Business Management Daily.
The case was thrown given the information contained in the retained records.
Other compliance management considerations mandate that companies retain documents should they be requested by an opposing party. Under discovery requirements, an organization must be able to produce requested information before a deadline set by the judge.
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Checklist: Best Practices of Secure and Efficient Records Storage
- Identify important records. First determine what’s in your archives and what’s vital to your business. Then shield the latter from accidental destruction.
- Develop a data destruction policy, and make it public. Colleagues who learn how to handle data properly are less likely to destroy it.
- Create an ongoing delete schedule. Do you clean your garage only once? Develop an ongoing plan to eliminate unneeded information.
- Establish a strong partnership. Join forces with an experienced, reliable records-management vendor.
Three Questions on Eliminating Extraneous Records
Q: How can we best meet compliance requirements during a records purge?
A: Consider bringing on a records-management firm as your partner in destruction. When you do this, the company will provide proof—in the form of paper and electronic trails—that you’ve complied with federal and state requirements to securely handle sensitive data.
Q: How can deleting make us more efficient?
A: As you toss old and unnecessary records, you also should prioritize vital records—that data critical to business continuity—to ensure that they are not deleted and remain well-protected going forward. In doing so, you’ll reduce retrieval times and build greater efficiencies.
Q: How can we save money doing this if we’re paying someone to help?
A: Think about the long-term benefits of paring down records. You’ll avoid the money-wasting delays of poking around unnecessary documents when you’re trying to satisfy legal discovery requests or audit deadlines. What’s more, you’ll retrieve hard-to-find or misfiled information faster.
Do you have more questions about records management options and services? Contact Iron Mountain’s consulting services team. You’ll be connected with a knowledgeable product and services specialist who can address your information management challenges.
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