Image of a note on the wall that says "Protecting Your Business and Employees"

Human Resources (HR) departments are the heartbeat of any organization, managing everything from recruitment to employee records. However, with great responsibility comes significant risk, especially regarding the sensitive, confidential information HR handles daily. Data breaches, identity theft, and compliance violations don’t just hurt your business; they put your employees at risk, too. That’s where shredding comes in.

Shredding confidential documents is more than a simple administrative task. It’s an essential practice to protect your company, maintain compliance, and safeguard your employees’ trust. This blog will explore why shredding is crucial in HR and provide practical tips for implementing best practices.

Why Document Security Matters In HR

HR teams handle critical information daily, including employment contracts, social security numbers, medical records, disciplinary records, and financial data. These physical or digital documents are a treasure trove for identity thieves and cybercriminals.

When sensitive information is not disposed of securely, it can lead to serious problems for your business and employees, such as:

  • Data breaches  – result from legal action, significant financial penalties, or reputational damage to the individuals or organizations involved.
  • Identity theft – is a growing concern, often targeting current or former employees by exploiting their personal information. This can lead to unauthorized use of their identities for financial fraud, opening accounts, or other malicious activities.
  • Non-compliance penalties for violating privacy laws, such as GDPR, HIPAA, or CCPA, are designed to protect sensitive personal data, ensure transparency, and uphold individuals’ rights over their information.
  • Damaged trust among your employees, stakeholders, and anyone involved in driving the success of your organization.

Given these risks, shredding redundant documents becomes vital to maintaining a secure and compliant workplace.

The Cost Of Mishandling HR Documents

According to IBM’s 2023 Cost of a Data Breach Report, a data breach’s average cost is $4.45 million. Even smaller breaches can cripple a company financially, not to mention the loss of reputation that often accompanies them. HR departments are uniquely vulnerable as they store a high volume of personally identifiable information (PII).

What HR Documents Need Shredding?

The first step to effective shredding in HR is knowing what to destroy. Here’s a breakdown of common HR documents that require secure disposal once they’ve outlived their usefulness or legal retention period.

Employee Records

These include personal identification details, tax forms, payroll records, and performance reviews. When an employee leaves the company, their records should be securely retained for a legally mandated period before being shredded.

Recruitment Documentation

Applications, resumes, interview evaluations, and reference checks often contain sensitive details about non-hires. To protect applicants’ privacy, ensure this documentation is destroyed promptly within your retention policy guidelines.

Medical Records

HR occasionally handles employees’ health-related documents, especially in the context of workplace injuries or benefits programs. Under laws like HIPAA (Health Insurance Portability and Accountability Act), mishandling these records can lead to steep fines and legal action.

Compliance and Regulatory Documents

Audits, compliance reports, and investigative records must be securely stored and destroyed to prevent sensitive information leaks.

By identifying these critical document types, HR teams can prioritize shredding as part of their routine operations.

How To Create A Shredding Policy In HR

To incorporate shredding seamlessly into your HR practices, establish a consistent document disposal policy. Below are some practical steps to get started.

1. Develop a Retention Schedule

Determine how long each type of document must be retained for compliance purposes before they can be shredded. For example:

  • Employee tax forms like W-2 or W-4 should be retained for four years.
  • Medical records typically require retention for six years under HIPAA.
  • Recruitment records may be kept for one to two years, depending on local privacy laws.

2. Use Scheduled Shredding Services

Partner with a reliable shredding company that offers scheduled services. With this option, you can set up a regular schedule for shredding documents on-site or off-site. This ensures that your sensitive information is consistently and securely disposed of without interrupting daily operations.

3. Partner with a Professional Shredding Service

For large-scale shredding needs, consider using a licensed shredding service. Many providers offer on-site or off-site shredding with secure collection containers, ensuring the process is seamless and 100% compliant.

4. Train Your Team

Ensure your HR staff understands the importance of document shredding and knows exactly which types of documents to shred, when, and how. Regular training sessions can reinforce these policies and ensure compliance.

5. Go Digital, But Still Shred Physical Backups

Transitioning to digital records reduces the volume of paper-based documents. However, be sure to shred physical versions of documents once they’ve been digitized.

Shredding And Compliance With Privacy Laws

Shredding isn’t just best practice—it’s often required by law. Failure to comply with privacy regulations can lead to significant financial and reputational damage. Here’s a look at key regulations that highlight the need for secure document disposal in HR.

Gramm-Leach-Bliley Act (GLBA)

The GLBA requires financial institutions to disclose their policies for protecting the privacy of customers’ personal information. This includes ensuring the proper disposal of sensitive documents, such as employee records and financial statements. Failure to comply with this regulation can result in hefty fines and penalties.

The Health Insurance Portability and Accountability Act (HIPAA)

HR teams in healthcare organizations must comply with HIPAA requirements for securely disposing of medical records. A HIPAA violation could cost your company anywhere between $100 and $50,000 per incident.

CCPA (California Consumer Privacy Act)

Businesses operating in California must securely handle and dispose of personal information under the CCPA to protect consumers’ privacy. Violating these standards can cost between $2,500 and $7,500 per record.

By integrating secure shredding into your operational workflow, HR departments can avoid violations and ensure ethical handling of sensitive data.

Shredding Digital Data

While much of this guide emphasizes paper shredding, don’t forget about digital data stored on outdated or unused hardware. When removing old computers, hard drives, or memory sticks, be sure to “shred” these digital storage forms, either by physically destroying them or using certified data-wiping services.

Building A Culture Of Security

Shredding isn’t just about tick-box compliance—it’s about fostering a culture of security in your workplace. HR leaders can champion this culture by emphasizing that document shredding is an act of responsibility and respect for employees. By prioritizing confidentiality, businesses can build greater trust among their teams while safeguarding their own operate

Protect Your Business With PROSHRED® Minnesota 

As a leader in secure document shredding and data destruction, PROSHRED® Minnesota is committed to helping businesses protect their sensitive information. Our team of professionals offers convenient and cost-effective shredding services that meet the highest security standards. Contact us today to learn more about our services and how we can assist your HR department with secure document disposal.