Documentation Holds the Key to Mitigating Legal Risks in HR Management

This article explores a critical aspect of human resources (HR) management within organizations that is often overlooked yet holds immense importance: documentation. While it may seem mundane or burdensome, proper documentation is vital for effective HR practices.

Why aren’t we doing it?

One of the main reasons for the lack of documentation is that managers have not received training on best practices in HR. Oftentimes, employers promote their top-performing employee into management, overlooking the need to provide training on the basic job duties the new manager is expected to perform. As a result, managers do not have the tools to compose a detailed corrective action form or a clear-cut performance review form, and are unsure how to have effective conversations with their employees. In addition, managers (like most human beings) often fear conflict situations. Sometimes, a manager is so afraid that they will say something wrong to an employee and get the company in trouble, that they will avoid difficult conversations at all costs.

There is also the mindset that creating documentation is time-consuming. This goes hand-in-hand with a lack of training and a lack of a solid policy and procedure. Proper documentation can take time for someone who is not well-versed. Still, the flip side is that employee relations issues take much more time and energy when situations are not effectively documented.

What makes documentation so important?

Employees (and people in general) are not mind readers.

When employee performance is not up to par or an employee violates a policy, documentation is key to communicating expectations and redirecting the employee. Employees must be told that their performance or behavior does not meet the expectations of the position or the company standards. Employees have the opportunity to improve when expectations are clearly communicated. Employees have plausible deniability when expectations are not outlined. Oftentimes, employers lack policies or job descriptions, leaving employees without complete information and instructions. Employees are often expected to magically meet expectations never communicated to them.

Documentation creates an accurate record of events, supporting decision-making.

Documentation ensures fair and consistent practices in Human Resources (HR) management. It is an essential tool that captures crucial information, provides a historical record of events, and safeguards employees and employers. Proper documentation not only promotes transparency but also acts as a shield against potential legal risks.

By meticulously documenting employee interactions, such as performance evaluations, disciplinary actions, and employee complaints, organizations create a reliable framework for their decision-making processes. This detailed record allows HR professionals to refer to specific incidents or conversations when assessing performance or handling disputes. Moreover, it ensures that no crucial details are forgotten or distorted over time.

Documentation further helps establish evidence-based reasoning for actions taken by managers and HR professionals. The burden of proof in unemployment claims and litigation often lies with the employer. In cases where legal challenges arise, maintaining accurate records can support the organization by demonstrating fair treatment and compliance with relevant policies and regulations. Additionally, comprehensive documentation can prevent misunderstandings and promote effective communication within the workplace.

How can we get better?

The first step to improvement is incorporating clear guidelines on documenting certain situations within an organization's HR policies. A solid policy and procedure encourage consistency across different cases and promote fairness in addressing employee concerns while minimizing potential legal risks associated with inconsistent or biased treatment. When HR oversees the process and trains managers, documentation becomes more effective and easier to create.

Effective documentation practices ultimately allow managers and HR professionals to navigate delicate situations with objectivity and integrity, resulting in harmonious work environments conducive to personal growth and professional development.

Conclusion

It is abundantly clear that documentation is pivotal in mitigating legal risks in an organization. Should legal disputes arise, organizations can build strong defense strategies by meticulously recording events and conversations. Moreover, comprehensive documentation ensures compliance with employment laws and regulations.

As we navigate the intricate landscape of HR management, let us embrace the power of documentation as a shield against legal pitfalls - for in doing so, we pave the way to creating an engaged, productive workforce and a pleasant work environment for all involved parties.

Disclaimer: The information provided in this blog is for informational and educational purposes only and should not be construed as legal advice. Laws and regulations vary by jurisdiction and specific circumstances. Employers and individuals should consult with their attorney or qualified legal professional to determine the appropriate course of action for their particular situation.

Roberta Edwards is a Senior HR Consultant with over 20 years of professional experience. Follow Edwards HR Consulting on LinkedIn and Facebook and read more about Roberta here.