Document retention is the practice of keeping records for as long as they are needed and no longer. In practice many organizations default to keeping everything forever, which creates its own set of problems.
Retention requirements vary significantly by organization type, jurisdiction, and document type. This lesson introduces general concepts. Always consult your organization's policies and, where appropriate, legal or compliance advisors for specific retention obligations.
Why Organizations Retain Records
- Operational continuity. Records of past decisions, contracts, and processes help the organization function when staff change.
- Legal and regulatory requirements. Many types of records must be kept for specified periods under law or regulation.
- Accountability and audit. Organizations may need to demonstrate what decisions were made, when, and by whom.
- Historical value. Some records have long-term institutional or historical significance.
Why Keeping Everything Forever Creates Problems
- Storage costs. Managing large volumes of files has real administrative costs.
- Privacy risk. Personal information that is no longer needed represents ongoing privacy risk.
- Legal risk. In some contexts, retaining records beyond their required period can create legal exposure.
- Findability. The more files exist, the harder it is to find the ones that matter.
Retention Periods
A retention period is the length of time a record should be kept before it is reviewed for disposal. Retention periods are typically set by organizational policy, legal or regulatory requirements, and operational need. Common examples: financial records are often kept for seven years in Canada for tax purposes; employment records may be kept for several years after employment ends.
Separating Active, Archived, and Disposable Material
- Active. Currently in use or recently completed. Kept in the main working area.
- Archived. No longer active but still within the retention period. Moved to an archive folder.
- Disposable. Past the retention period and no longer needed. Reviewed and securely deleted.
Secure Disposal
Deleting a file is not always sufficient. For sensitive or personal information, secure deletion may be appropriate. For physical documents, shredding is the standard. Your organization's policies should specify the appropriate disposal method for different types of records.
Key Takeaways
- Retention is about keeping records as long as needed, not forever
- Retention periods are set by policy, law, and operational need
- Keeping unnecessary records creates storage, privacy, and legal costs
- Separate active, archived, and disposable material and review regularly
Learn practical techniques for finding files quickly in Finding Files Efficiently.