• A company should document its hiring process in case it needs to justify hiring decisions.

Good hiring documentation starts with a job description of the position. A job description should accurately reflect the skills and abilities necessary to successfully fill the position. This documentation is crucial to the hiring process. It will help screen out unqualified applicants and justify hiring decisions.

After an employee is on board, it is important to document training records, changes in skills required by the job, additional skills that are acquired, further education, changes in job duties, transfers, promotions, demotions, and so on. Documentation of training records can help an employer determine when someone is qualified — and when an employee is not. Documentation also serves to justify the reasons for pay differentials.

When an employer is sued, courts are reluctant to second-guess the processes the employer used in making its employment decisions. Even poor business decisions are generally left to stand if the decisions are not illegal. Documentation may be what saves a company.