Introduction
A strong document retention policy is more than just a compliance safeguard—it’s a practical roadmap for managing information throughout its lifecycle. Whether you run a small business or a large organization, having a clear, enforceable retention policy can help reduce legal risk, improve operational efficiency, and protect sensitive data.
So what exactly should your document retention policy include?
1. Purpose and Scope
Start by clearly stating the purpose of the policy. This section should explain why the policy exists—typically to comply with laws and regulations, manage risk, and support business operations. Outline what types of records the policy applies to (e.g., paper files, emails, digital documents) and whether it covers the entire organization or specific departments.
2. Record Classifications
Not all records are created equal. Classify the types of documents your organization maintains, such as:
– Financial records
– Employee records
– Client files
– Contracts and agreements
– Emails
– Operational reports
– Tax documents
Grouping records into categories makes it easier to assign appropriate retention timelines.
3. Retention Timelines
This is the heart of your policy. For each document type or classification, specify how long the record must be retained before it can be archived or destroyed. These timelines should align with:
– Industry regulations (e.g., HIPAA, IRS, SEC)
– Statutes of limitations
– Internal business needs
For example, you might retain tax records for 7 years, but only keep general emails for 1 year.
4. Storage Guidelines
Specify where documents should be stored—both physical and digital—and how they should be secured. This section may include:
– Password-protected folders or secure cloud platforms
– Locked filing cabinets for physical records
– Access controls by department or role
5. Disposal Procedures
Once a document has reached the end of its retention period, it should be securely disposed of. Outline how this will be done:
– Shredding paper files
– Wiping or physically destroying hard drives
– Using a certified third-party shredding vendor
– Documenting the destruction process
Be sure to include procedures for both regular and confidential documents.
6. Legal Holds
If your organization is involved in litigation, audit, or investigation, certain records may need to be preserved even if they’re past their scheduled retention date. Describe how legal holds will be issued, communicated, and tracked within your organization.
7. Roles and Responsibilities
Clarify who is responsible for maintaining and enforcing the policy. This may include IT, HR, legal, or compliance departments. Designate a policy owner who can keep the policy up to date with changing laws and business needs.
8. Training and Review
Employees should be trained on the policy, especially those who handle sensitive data or manage records. Establish a schedule for reviewing the policy annually to ensure it remains current.
Final Thoughts
A clear and comprehensive document retention policy protects your business, builds trust, and keeps you compliant. If you’re unsure where to start, consider working with a compliance specialist or a document destruction partner like SecureShred to ensure your retention and disposal practices are airtight.
