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For The Record File it under "P" -- for protection.

By Jacquelyn Lynn

Opinions expressed by Entrepreneur contributors are their own.

They may not be as exciting as the X-Files, but employeepersonnel files deserve some serious attention. Properly maintainedfiles can protect you in the event of litigation; give you guidancein making promotion, compensation and other management decisions;and, in general, help you run a more efficient organization. Incontrast, careless record-keeping can get you in trouble in thesesame situations.

So what should be kept in an employee's personnel file?Laura M. Smith, an attorney with Wessels & Pautsch PC in St.Charles, Illinois, suggests keeping the following documents in eachemployee's general file:

  • employment application

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