Have you ever interviewed an individual for your company who was charismatic and full of life? They were so full of energy that you knew the entire team would love them and their experience? The first 3 months, they were on fire. They grasped your sales program, morale increased, everything was going great. Fast forward to 6 months of employment. That employee just went through a tough time in their personal life for one reason or another. They don’t show up on-time for their shift most days and it’s hit-or-miss in regards to following the sales program. You have had enough and are ready to let them go. Wait a second, what does their employment file show? Are you at risk for an unemployment claim against your business?


A complete employment file can tell a story.

In a perfect world that story would be the length of a T.V. commercial. Employment commenced, a productive employee who proved to be diligent and respectful. Employment ended after the employee moved out of state. The employment file on hand at your business would be pretty boring. New hire information collection of personal info, tax exemptions, acknowledgement of the policy manual, benefits elections, pay rate change info and the standard termination paperwork. After this employee left, the employee file may be moved to an archived filing cabinet to be shredded after several years. This file is so boring, you might even get a yawn.

For the charismatic employee who went off the deep-end, what do you have on file? Is their file filled with a series of screenshots from movies that weave a story of the changes in the employee’s performance? Employment reviews and write-ups of poor performance? Or does it resemble the ‘perfect world’ employee who you would rehire in a heartbeat? Without a complete employment file, you are leaving your company at-risk. Maybe you have been lucky enough to have the employees working with you when you first opened your business or took over. The rest of us have dealt with unhappy employees, or employees who we are unhappy with. Proper documentation in the employment file can mean the difference of paying increased unemployment taxes to the state.

When things started becoming difficult with this employee, your sales manager likely visited the HR office frequently. In a perfect world, he pulled the file to review, discussed with the HR manager next steps, and acted accordingly. With several meetings and file reviews over a few months, this adds up to a lot of time for both him and the HR manager. Scanning and storing the employee files in Scan123 will give back time to both managers. The sales manager can request the personnel file for his employees from the HR manager. The file is quickly emailed to the sales manager and he can refer back to the file as often as he needs.

What happens when the sales manager wants to review a file after the HR department has left for the day or over the weekend? When employee files are filed in a paper cabinet, the sales manager must wait until the HR manager is on-site in order to review the employee file for write-ups. When employee files are scanned and stored electronically, files are always accessible.


New Hires

Job applicants and new hires have a lot of rights. Have you given the new hire the same opportunities as the other individuals you currently employ? The employee file is your defense in the case of an inequality claim.  Ensure your policy manual addresses all of these rights and your procedures are followed correctly. Document, document, document. Job applications, resumes, pre-employment drug testing? Those documents need to be saved as well. All of this paperwork can add up in a hurry. Scanning and storing these important documents electronically will keep your HR paperwork under control and you in compliance.



Is your company at-risk for being audited by the Department of Homeland Security? The Society for Human Resource Management suggests completing I-9 self-audits with the increase of ICE audits on the way, following the increase of immigration enforcement under President Donald Trump. SHRM suggests the following steps:

  • “Reviewing current policies and procedures for compliance.
  • Comparing I-9 forms with payroll records to ensure there is a completed form for each employee.
  • Making sure hard-copy I-9 forms are maintained in a separate file from employees’ personnel files, or maintained electronically in compliance with the law.
  • Correcting and/or replacing the form.”

For the highest risk prevention, create a separate I-9 cabinet within Scan123 to scan and store your employee I-9 forms.


Tracking Employee Garnishments

When your employees have more than one garnishment on file, payroll can get tricky. How do you know which garnishment has priority? How long is the garnishment valid for? Where do you store the garnishment? When you are working with multiple garnishments with different rules, organization becomes key. Storing garnishment paperwork in the employee file ensures you can prove what paperwork you received, responses to the appropriate agencies, and backup for each payment delivered.

When scanning and storing the garnishment documents electronically, you will always have the important info at your fingertips. Does the garnishment only last for 90 days? Set a reminder in Scan123 to inactivate the garnishment on the appropriate date.


Terminated Employee Files

Keep your files simple by moving employee files to terminated once the employee leaves your business. With Scan123 this is simple. Select the checkbox for the folder you want to move and click Move. Select the Terminated Employee Files from the dropdown menu and click Move. With your documents stored electronically, you will not have to pay for the cost to store it for the next several years.

Do you want to scan and store Terminated Employee Files that are currently stored in paper files? Click here to get started.


Who Needs Access to Employee Files in Your Dealership?

Once your Scan123 Employee Files cabinet is setup, have your Company Admin grant access to the correct people on your team:

  • HR Manager
  • Office Manager
  • Controller


Utilize Scan123’s Bookmarks to Save Frequently Printed Forms

New Hire Paperwork, Employee Handbook, and other forms you use frequently can be Bookmarked for easy printing when you need them. Instead of pre-printing several forms to later send to the recycle bin after the next revision, upload your most up-to-date forms and have your managers print them when needed.

Scan your employee files today

Click the link above to create an Employee Files cabinet and start scanning your employee files and HR sensitive documents today.

Do you already have an Employee Files cabinet? Review these helpful tips to keep your scanning on the right track:

Tips For Scanning Employee Files

  • Choose a folder naming system that works for your business: File by Employee Name or Employee Name plus Employee Number (ex: Smith 405).
  • Utilize separate cabinets to protect HR sensitive documents: Employee Files, HR Only Employee Files, I-9 Files
  • Review scanned pages for readability before sending to your cabinet

Want to learn from someone already scanning employee files? Comptroller Linda Bain – Pete’s Car Smart Kia uses Scan123 in the HR office to scan employee files. Click on the link above to learn what she has to say about how Scan123 has brought more efficiency to her team.