Document retention policy is a guideline that directs a company on how long it can retain its paper and digital documents that are necessary for its processes. This helps the company keep away the documents that were in use before but are no longer necessary. The documents can then either be archived or disposed of securely.
The document retention policy helps in scheduling either the archiving or disposing of the unnecessary documents in a systematic and well aligned manner. With the document retention policy in place, the scheduling is enabled and transitioning of the company’s documents is made easy. This leads to less clutter of documents no longer used on a frequent basis. The security of the company’s information is also enhanced.
Why is document retention schedule important?
The length of time a company can retain documents is determined by the information type or Government regulations and compliance. The document retention schedule is usually broken down into data ownership, data type and data defined retention period. As long as the documents are frequently used, then they need to be retained. If the documents are no longer in use then they have to be kept away from the office in a safe place or disposed of altogether.
By using an electronic document management system, your digital documents retention period would be automated. This makes it easier for your company to purge the unnecessary documents or archive them in the central repository.
Document retention schedule will help your company create a systemized structure of disposing documents which are not necessary.
Document retention schedule will help your company create a systemized structure of archiving documents which can be used for reference in future.
Document retention schedule will also help in organizing and minimizing document clutter within the work environment. Ensuring that only document that is still in use remains within reach.
Document retention schedule will also help reduce storage cost because of keeping away documents which are no longer necessary.
What factors determine document retention schedule?
To determine how long the documents are to be kept as per the document retention schedule is defined by a number of factors which include
Time
The time a document should be retained is determined by the type of document and the compliance rules. For example some financial documents can be retained for seven years, after which they can either be disposed of or archived.
Type of record
The type of record also determines how long the document can be kept. For example the records of recruitment are kept for one year, Personnel files are kept for fifteen years.
Revision of documents
How the company maintains the revision of its documents will also define the retention period. How long are the revised documents to be kept before the decision to do away with them is made.
Paper document vis a vis electronic documents
Is the retention policy of retaining paper documents different from the retention policy of electronic documents. The document retention schedule should be able to be defined for both.
Disposal or archiving of documents
The document retention schedule should also be able to define when and whether the document is to be disposed of or archived. This also applies to where the documents are to be stored.
Government regulations and compliance
The government can have regulations determining the length of storing a type of document. This is incorporated in the document retention schedule to ensure that the company adheres to the government regulation.
Conclusion
This process has to be closely managed with the company’s legal and audit team. Having a document retention schedule will streamline a company’s work in document processes. This would speed up work processes and minimize clutter of unnecessary documents which are no longer in use. This also helps in accountability and leaves a trail of how the documents were managed up to and including archiving or disposal.