In today’s evolving privacy climate, organizations face growing pressure to manage HR records in ways that respect personal data while complying with global regulations. In the August 2025 edition of Virtual Coffee with Consulting, Zasio team members explored practical HR data retention strategies that balance operational simplicity with increasing privacy demands.
The session offered practical strategies for balancing operational simplicity with increasing privacy demands. | Read the Full Webinar Transcript
Big Bucket vs. Granular Retention: Finding the Sweet Spot
Retention schedules are the backbone of HR data retention strategies, helping organizations manage records efficiently and compliantly. Our recent webinar emphasized the enduring value of the “big bucket” approach, which groups records into broad categories with unified retention periods. While granular, data object-level retention may seem ideal, it often leads to:
- Over-retention due to over-complexity, which leads to difficulty understanding obligations.
- Under-retention from misalignment with legal requirements
- Operational inefficiencies and non-compliance risks
The presenters urged organizations to strike a balance (use big buckets for simplicity but add granularity where privacy or legal obligations demand it).
The Deletion vs. Retention Dilemma
Notably, one of the most relatable challenges discussed was the tug-of-war between deletion and retention.
- Privacy advocates push for deletion to minimize data exposure.
- Legal teams require retention for compliance and litigation readiness.
- Risk mitigation teams need access to historical data for business continuity.
Global operations further complicate this balance, with varying retention laws across jurisdictions. The takeaway? Build flexible, jurisdiction-aware policies that accommodate both privacy and operational needs.
Managing Object-Level Data with Technology
Modern HR systems generate highly granular data such as emails, payroll entries, and performance reviews. Managing retention at this level is complex but achievable with:
- Metadata tagging
- Automated classification tools
- Integration with HRIS and ECM platforms
Consequently, these technologies help align granular data with broader retention categories, flag misclassified records, and reduce administrative burden.
HR Record Categories: Tailored Retention Strategies
For the strategies below, there are jurisdictions that are exceptions to these ranges and industries that also fall outside the ranges which highlights why a customized retention schedule is needed.
Recruitment Records
- Non-Hired Candidates: Retain for 6 months to 2 years, depending on jurisdiction.
- Hired Candidates: Records become part of the personnel file, retained for DOE + 5–7 years.
Background Checks
- Non-Hired: Retain for up to 1 year.
- Hired: Retain for DOE + 7 years, with industry-specific exceptions (e.g., aviation, finance).
Personnel Files
- Must be clearly defined per jurisdiction.
- Sensitive records (medical, grievances) should be segregated and protected.
- Common retention: DOE + 5–7 years.
Pension and Benefits
- Retention often driven by final payment + 5–11 years.
- Consider creating a “skeleton record series” with only essential data to avoid over-retention.
Leaves of Absence & Labor Relations
- Leaves: Typically, creation + 2–7 years, with exceptions.
- Labor Relations: Expiration + 7–15 years, driven by dispute resolution needs.
Data Subject Requests (DSRs)
- Retain the request, resolution summary, and logs.
- Copies provided to requesters should be treated as transitory.
Certificates of Destruction: Automation with Accountability
As organizations automate purges based on retention schedules, the webinar stressed the importance of:
- Documenting destruction via Certificates of Destruction (CODs)
- Checking for litigation holds before purging
- Maintaining audit trails for defensibility
Next Steps: Privacy as a Practice
In conclusion, the session closed with actionable advice for improving HR data retention strategies in response to evolving privacy laws and operational needs.
- Review and simplify retention schedules with privacy in mind
- Align triggers with legal and operational needs
- Train teams to understand the balance between retention and deletion
- Monitor global legal developments to stay ahead of compliance changes
Bottom Line: Big bucket retention remains a best practice, but today’s privacy climate demands thoughtful adjustments. By leveraging records management software, defining record categories clearly, and staying legally informed, HR teams can build retention strategies that are both compliant and efficient.
Disclaimer: The purpose of this post is to provide general education on information governance topics. The statements are informational only and do not constitute legal advice. If you have specific questions regarding the application of the law to your business activities, you should seek the advice of your legal counsel.