Companies require many records, and the Human Resources function is no stranger to records, record retention, confidentiality, and so on. Some applicable employment laws have recordkeeping mandates. Others do not, but have rules if the company creates certain records.

Records are involved before the first employee is hired, all the way through termination.

The importance of recordkeeping is demonstrated in the following stories:

• A job applicant, an African American woman, sues an employer for discrimination for failure to hire her. Company records of the interview show she was not as qualified as the applicant who was chosen but who declined the position (a Caucasian male), nor the applicant who was eventually hired (a Caucasian woman). Who wins? The employer does.
• A 59-year-old former employee sues the company for illegally terminating the employee because of age. Company documentation says it was because the employee lacked the necessary computer skills in working with spreadsheets, despite repeated training. Who wins? The employer does.

These are taken from actual court cases where the employer prevailed due to sufficient documentation. Not only should employers document the hiring and the termination process, but everything in between.