The proper handling of personnel records or personnel files in departments often raises questions. The campus keeps only personnel records that are relevant and necessary to the administration of personnel programs. These records should be maintained with accuracy, relevance, timeliness, and completeness, and appropriate and reasonable safeguards should be established to ensure security and confidentiality.
Properly keeping personnel records matters because if you don't, the result can be a loss of privacy for the employee and a grievance or lawsuit for the University.
More information: Personnel File Guidelines.