Recordkeeping and personnel files
As an HR manager, you get to help drive your organization's success by helping your team be the best they can be and sometimes driving your organization's success is all about compliance. That's where documentation comes in. HR is the record keeper of employee performance, advancement, career development, discipline, benefits, bonuses, and everything in between. I hate to say it, but in the end, the purpose of all that documentation is to protect your organization from liability. If an employee fills a suit against you for violation of any employment laws, the corner stone of that case will be your documentation.
Now, you can always try to convenience yourself that a suit would never happen to your company. Everyone loves working there, you all get along, the CEO is awesome, and there's just no way someone would ever do that. You could say the same thing about wearing your seat belt when you drive, that you'll never get in an accident, but we all know that car accidents happen every day so wear your seat belt and be a thorough.Source: https://www.linkedin.com/learning/administrative-human-resources/recordkeeping-and-personnel-files