Records management has a significant impact on HR departments. Employee records provide a history of that person’s activities during their time with the company. Having access to a complete audit log of an employee record is vital for several reasons: Employers have to adhere to records retention standards to ensure compliance with established legislation, such as maintaining W-4s and I-9s. Employee records are used to make informed decisions about pay raises, promotions, and career development. Documentation such as a signed employee handbook, job application, and performance review goals demonstrate a written account of expected employee behavior. Disciplinary actions and conversations with employees are critical to record in the event of a legal proceeding or termination. Proper management of employee records ensures an employer maintains compliance and avoids any accusations of discriminatory actions. Furthermore, HR needs to store and manage employee records properly because this facilitates monitoring productivity and performance. Employee records management is essential to support career development and business growth.