Are You Effectively Managing Your Data Retention?

Do you remember way back when data was all on paper and stored in rows of file cabinets? The cabinets for a mid-size business may have filled a room back then, but today you might need a massive warehouse like the one at the end of Raiders of the Lost Ark – where they sored the Ark of the Covenant.

Thank goodness for today’s digital storage! In so many ways, the digital world has transformed how small andmide-size businesses (SMBs) operate. We now have an overwhelming volume of information to manage employee records, contracts, logs, financial statements, not to mention customer emails and backups.

PR Newswire performed a study that shows that 72% of business leaders say they've given up making decisions because the data is too overwhelming, and 70% would prefer a robot to make their decisions. Not very hopeful for the future, is it?

If not managed properly, all the information we generate can quickly become disorganized. Effective IT solutions can help by putting the right data retention policy in place. A solid data retention policy helps your business stay organized, compliant, and save money.

So, what do you keep, what do you delete, and why does it matter?

What is an example of a data retention policy?

A data retention policy is like your company’s rulebook for handling information. This shows how long you hold on to data, and when it becomes good to get rid of it. This is not just a de-cluttering process, but it’s about knowing what needs to be kept and what needs to be deleted.

The types of data a business collects varies by industry, and some of it is essential for operations or for legal reasons. Other pieces? Not so much. It may seem like a good idea to hold onto data, but this increases the cost of storage, clutters the systems, and even creates legal risks.

Establishing a data retention policy not only allows you to keep what's necessary but lets you do so responsibly.

To make sure your policy is effective, see to it that it balances data usefulness with data security. You want to keep the information that has value for your business, whether for analysis, audits, or customer service, but only for as long as it’s truly needed.

What are the benefits of data retention policy?

Some are critical, and some just keep you organized and productive:

Staying compliant with local and international laws.

Enhanced cybersecurity by eliminating outdated or unneeded data that could pose a risk.

Maintaining high efficiency in managing storage and IT infrastructure.

Gives better clarity in how and where data lives across the organization.

Then there’s the value of data archiving. Instead of storing everything in your active system, data can be tucked away safely in lower-cost, long-term storage. It’s there when you need it, but you don’t have to weed through it every time you’re looking for something.

What does a well-planned policy do for your business?

Keeps storage costs in line: Stop paying for space used by outdated files.

Eases unecessary clutter: Faster access to the data you do need.

Regulatory protection: Maintain compliance with laws like GDPR, HIPAA, or SOX.

Quicker audits: When regulators do come calling, you can easily find essential data.

Reduces legal risks: If it’s not there, it can’t be used against you in court.

Improved decision-making: Allows you to focus on current, relevant data, not outdated noise.

How do I create a retention policy?

While policies are usually indistry-specific, there are some basic best practices that work for everyone:

1: Learn and understand the laws: Nationally and regionally, every industry and specific data requirements under the law. Healthcare providers, for instance, must follow HIPAA and retain patient data for six years or more. Financial firms may need to retain records for at least seven years under SOX. Learn the rules and stay out of trouble.

2: Clearly define your business needs: Legal compliance is not the be-all, end-all of data retention. Maybe your sales team needs data for year-over-year comparisons, or HR wants access to employee evaluations from the past two years. Balance legal requirements with operational needs.

3: Organize data by type: A one-size-fits-all policy doesn’t work. Emails, customer records, payroll data, and marketing files all serve different purposes and have different retention lifespans and priorities.

4: Archive: Store long-term data separately from active data. Use archival systems to free up your primary IT infrastructure.

5: Prepare for legal ‘holds’: If your business is ever involved in litigation, you’ll need a way to pause data deletion for any records that might be needed in court.

6: Create two versions of your policy: Draw up one detailed, legal version for compliance officers and a simplified, plain-English version for employees and department heads.

Let’s Do This!

Here’s how to take your data retention policy from idea to implementation:

1: Assemble your team: Bring together your IT support, legal, HR, and department heads. Everyone has unique needs and insights.

2: Identify compliance rules: Document all applicable regulations, from local laws to industry-specific guidelines.

3: Create a map of your data: Know what types of data you have, where it is, who owns it, and how it flows across systems.

4: Establish timelines: Assign values and timelines to determine how long each data type stays in storage, gets archived, or is deleted.

5: Assign responsibilities: Designate specific team members to monitor, audit, and enforce the policy.

6: Use Automation: There are handy software tools to automate archiving, deletion, and metadata tagging.

7: Ongoing review: Select a time frame, possibly annual or bi-annual, to review your policy keep it aligned with new laws or business changes.

8: Train your staff: Employees need to know how the policy affects their work and how to handle data properly.

Get Your Digital House in Order

Your business shouldn’t hoard data without a good reason. A smart, well-organized data retention policy isn’t just an IT necessity; it’s a strategic move for protecting your business, lowering costs, and staying on the right side of the law.

Ask your IT team. Their solutions aren’t just about fixing broken computers; they’re about helping you work smarter. And when it comes to data, a little organization goes a long way. So don’t wait for your systems to slow down or a compliance audit to hit your inbox.

Contact us to start building your data retention policy today and take control of your business’s digital footprint.