This post summarizes 5 top indicators for when an organization might need to refresh some of its retention practices (don’t worry, there are more 😊), supported by relevant statistics and insights from major consulting organizations and government agencies.
Our basic theme today is that your retention policies may not be perfectly fine (but they can and should get there)!
Let’s Go!
Increase in Remote Work: According to research by McKinsey, about 35% of U.S. employees can work from home full-time, and another 23% part-time (even more for knowledge workers). The shift to remote work has significant implications for records management, especially in ensuring the accessibility and security of electronic records. This, in turn, has given rise to the need for policies that digital access and ensure that records are stored in a manner that allows easy and secure access from remote locations.
Mergers & Acquisitions (M&A) Activity: M&A activity surged post-pandemic, with many companies undergoing structural changes. This surge has required organizations to update their retention schedules and records management practices to integrate diverse (read: often, dicey) management practices and compliance standards from merged entities – especially when those entities are located in new jurisdictions (with laws that are not addressed by your current schedule) or where you are acquiring businesses that have fly-by-the-seat-of-your-pants records management practices (yes, those exist).
Organizational Downsizing: According to research by Quantum Workplace, about 40% of businesses have reported a moderate to high impact on infrastructure due to remote work shifts, often leading to downsizing and reevaluation of physical and digital records management. This has created a need to defensibly consolidate and eliminate expired records and junk paper. This is especially true for those items that are stored in a warehouse, are of unknown provenance, and are collecting dust for no apparent reason (but are still incurring massive storage costs).
Litigation Readiness: Fact: An updated retention schedule helps manage legal risks. According to Quantum Workplace, since the pandemic, about 77% of remote employees report increased productivity, which means the creation of more digital data that need to be properly and defensibly governed by a retention schedule to mitigate litigation risks. For example, not every damaging email that is created is a record – but that doesn’t mean that it won’t show up on the stand and implicate you!!
Regulatory Changes: Laws like GDPR and CCPA/CPRA require businesses to maintain up-to-date retention schedules to ensure compliance. And, in the case of a data incident like a breach, one of the first questions that regulators ask (after can we see your records) is how you managed your recordkeeping practices. Having an up-to-date retention schedule coupled with policies and procedures and training forms a core part of the compliance culture needed to meet this scrutiny!
The shift to remote work, heightened M&A activity, organizational downsizing, the need for litigation readiness, and evolving regulatory landscapes are only some of the factors underscoring the importance of regularly refreshing your records retention culture. By doing so, organizations can ensure they are not only compliant with current laws but also prepared for future changes, thereby safeguarding their data, reducing costs, and optimizing operational efficiency.
And not surprisingly (at least for us), records management and IG professionals are at the vanguard of this effort!
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