According to a PR Newswire study, 72% of business leaders have given up making decisions due to an overwhelming amount of data.

All this data can quickly become unmanaged if left unmanaged, making effective IT solutions increasingly important for businesses to stay compliant and save money at the same time. An appropriate data retention policy will help your organization keep organized while saving money while being compliant and saving money - you simply have to know which records to retain or delete and why this matters for business success!

What Is a Data Retention Policy and Why Should It Matter?

A company's data retention policy serves as its guidebook on how to handle information. It details when to keep files, when to delete them, how long each piece should remain stored before being archived for safe keeping and more importantly which pieces need to remain. A data retention policy doesn't just involve cleaning; it should help determine what stays and what needs to go.

Each business collects data for various reasons. Some data is essential for daily operations or legal proceedings; the rest? Not really necessary. Though keeping certain types of information can seem like an excellent idea at first, keeping too much data could increase storage costs, clutter up systems and potentially create legal liabilities.

An insurance policy provides the means for you to not only maintain what is essential in life, but do so safely and ethically.

Smart Data Retention: What are Your Goals?

Security and usefulness of data should always be top of mind when creating any policy for retention of business-relevant data, including audit reports, customer service tickets or analytical insights. Any valuable information should only be kept for as long as necessary to benefit your organization - such as audited information needed for audits or analyses.

Small businesses frequently adopt data retention policies for three primary reasons:

Respect of both local and international laws

Strengthen security through the removal of obsolete or unnecessary data which poses a potential security threat.

Storage and IT infrastructure management that is efficient.

Clarity on where and how data are stored across an organization is essential to its success.

Do not overlook the importance of data archiving! Your information can be stored more economically in long-term storage alternatives rather than being kept active within an active system.

An Effective Data Retention Policy

What can a Well-Thought-Out Data Retention Policy Mean for Your Business With proper planning, an insurance policy can do wonders for the health of your company.

• Reduce storage costs: Don't pay to keep old files.


• Reduce clutter. Gain easy access to data that matters.


• Protect Yourself From Regulatory Risks: Stay on the right side of legislation such as GDPR, HIPAA or SOX.


• Quicker audits: Quickly locate essential data when regulators come calling.


• Reduce Legal Risk: By not owning it, if can't be used against you in court.


• Improved decision-making: Use current and relevant data instead of outdated noise to make more accurate decisions.

How to Construct Your Policy: Best Practices

There are certain common best practices when creating policies, even though no two businesses may use identical ones.

Know the laws. Each industry and region has specific data requirements. Healthcare providers, for example, must abide by HIPAA by keeping patient data for at least six years; while SOX regulations require financial firms to store records for up to seven years.

Define Your Need: Retention doesn't always mean meeting legal obligations - your sales team might require data to compare year-over-year or HR could need access to employee evaluations from two years ago. Take both legal and operational requirements into consideration when considering your retention needs.

Sort Your Data Accordingly: Don't apply a one-size-fits-all policy for managing emails, payroll information, marketing files and customer records; each type has specific purposes and retention periods.

Archive data that you will no longer need immediately; don't accumulate it all at once. Archival systems can free up space on your primary IT infrastructure and reduce unnecessary expenses.

Prepare for legal holds. In the event that your company becomes embroiled in litigation, if necessary you should be prepared to halt data deletion for records needed for court.

Create two versions - a complex legal document for compliance officers and an easier, plain English version for employees and department heads.

Are You Ready to Craft the Policy Step-by-Step (Step by Step) (STEP by STEP)
Do You Know How To Take an Idea From Concept To Reality (CONCEPT TO REALISM) (STEP BY STEP)? (Step-By-Step Process for Policy Creation).

Establish a team. Include IT, HR, legal and departmental heads - each person brings different experiences to the table.

Documenting Compliance Rules: Clearly document all applicable regulations, such as local laws and industry-specific standards.

Map Data: Analyse what data types you possess, their storage locations, who is their owner and how it moves among systems.

Define Retention Periods: Establish how long data types need to be archived, stored or deleted.

Define Responsibilities. Assign members of your team the responsibility for monitoring, auditing and enforcing policy.

Automate whenever possible: For optimal results, utilize software tools to handle the archiving and deletion process as well as metadata tagging.

Review Your Policy Regularly: Schedule an annual (or biennial) review to make sure that any new laws or changes to business are addressed appropriately.

Educate Staff: Make sure employees fully comprehend how this policy will impact them in their work, and how best to handle data.

Compliance Is of Utmost Import for Any Business

Compliance should be at the core of every business operating within regulated industries or managing customer data. Compliance can take various forms, with data retention laws across the world including:

Under HIPAA Healthcare Providers must keep patient records for at least six years after discharging a patient from care.

Sox regulations mandate that publicly-traded companies maintain financial records for seven years minimum.

PCI-DSS: Businesses which process credit card data must carefully store and dispose of sensitive information.

GDPR businesses that do business with EU citizens must clearly indicate what data they keep, why and for how long.

Under the California Consumer Protection Act, companies based either within California or within the US serving California residents must offer transparency on personal data collection practices as well as an opt-out option.

Should you violate these regulations, fines and reputational damage could result. Smart IT providers can guide their clients through these regulations to keep them compliant.

Cleaning Out Your Digital Closet

Your business shouldn't keep any data it no longer needs for any illogical or unnecessary reason - not just IT related; an effective data retention policy is key to safeguarding both its operations and costs.

IT solutions don't just repair broken computers; they help your team work more efficiently too. Organization is key when it comes to data, so don't wait until your systems slow down or compliance audit comes around before taking action!

Contact us immediately to start creating data retention policies and gain full control over your digital footprint. For inquiries on how to fortify your business:📞 (404) 932-5940 or 📩info@nuwaveitc.com