aPHRi Questions Bank

 Definition and Purpose of a Document Retention Policy:

A document retention policy is a set of guidelines that outline how an organization manages its records—both physical and electronic—throughout their lifecycle. The goal is to ensure compliance with legal and regulatory requirements, optimize storage use, and safeguard confidential information.

 Explanation of Benefits:

B. It complies with legal requirements:

Organizations are often required by local, state, federal, or international laws to retain specific documents for certain periods. For example:

Tax records must be kept for 3-7 years, depending on jurisdiction.

Employee records (e.g., payroll, termination, and injury reports) often need retention under labor laws such as the U.S. Fair Labor Standards Act (FLSA) or GDPR in Europe.

Failing to adhere to these requirements can result in fines, penalties, or legal exposure.

C. It indicates how long certain records should be kept in file:

A well-crafted document retention policy defines retention periods for various document categories (e.g., HR files, financial records, contracts), ensuring consistent and efficient management.

This aids in avoiding unnecessary storage costs, reducing clutter, and making it easier to locate important documents when needed.

 Eliminating Incorrect Options:

A. It minimizes administrator time: While improved organization can save time, this is not a primary benefit of a retention policy. Time-saving is a byproduct rather than a core objective.

D. It helps new hires understand the process of documentation: The policy's primary purpose is to manage document lifecycles, not to train new hires.

E. It helps reduce environmental impact: While reducing paper usage could indirectly support environmental goals, this is not a central aim of most document retention policies.

 International HR References:

General Data Protection Regulation (GDPR): Mandates specific retention periods for personal data in the European Union.

U.S. Federal Rules of Civil Procedure (FRCP): Establishes requirements for electronic document retention.

Sarbanes-Oxley Act (SOX): Governs the retention of financial records for public companies.

ISO 15489-1:2016: International standard for records management principles.

Attrition refers to the gradual reduction of a workforce due to employees leaving the organization without being replaced. This contrasts with turnover, which includes both departures and replacements. Attrition typically results from resignations, retirements, or other natural separations.

Explanation of Other Options:

A. Employees who have resigned: Resignations are a part of attrition but do not define it entirely.

B. Employees compensated to leave the organization: This describes severance agreements, not attrition.

C. Fired employees in a given time period: Involuntary terminations are not specific to attrition.

they provide access to networks of industry professionals who may not be actively job-hunting but are engaged in their fields.

This repeats Question No. 63, and the same reasoning applies.

A contingent search occurs when an organization pays a staffing agency only after successfully filling a position. This type of search is often used for single job placements or specific hiring needs.

Explanation of Other Options:

B. Online search: Refers to job postings or online recruitment efforts.

C. Retained search: Involves an upfront fee for exclusive recruitment services, not tied to filling a single position.

D. Reference search: Focuses on verifying candidate credentials, unrelated to agency hiring.