Paperless HR Saves Time and Money
Paperless HR is a digital approach to human resources (HR) that uses technology to minimise paper-based processes. Digital processes can help HR departments streamline tasks, enhance compliance and improve the employee experience.
Paper documents and filing cabinets have been the traditional way to organise employee information in Human Resources departments for decades. But going digital translates to big savings in staff time and money. Progressive HR departments are transitioning from physical documents to electronic document management, paperless HR systems.
Paperless HR is here in the form of completely digital recruitment, hiring and on-boarding all the way to training, contracts, records management, performance reviews and automated data retention and purge.
The cost of non-paperless hiring
Consider a company with more than 100 new hires annually, with extensive HR on-boarding paperwork that includes policies, procedures, compliance documentation and agreements and orientation material.
The amount of time, resources and sheer weight of paper involved in physical transactions, paperwork preparation, print, completion, signatures, scanning, indexing and filing is immense. Generally, paper-based methods also lead to a lack of consistency across personnel files and an inability to validate exceptions, together with the natural risk of documents being completed incorrectly, lost or misfiled.
HR departments have to work incredibly hard to track right to work evidence, performance reviews, evaluations, assessments and training documents… even holiday requests. Add in multiple document types that have to be retained for specified but varying periods, and other data that has to be destroyed at a regulatory checkpoint, and paper becomes virtually un-manageable.
The cost of non-centralised HR document management
- The cost of re-formatting and data entry is huge
- HR staff typically spend 30% of their time looking for information stored as paper or in emails
- Delays in queries on matters such as pay, pensions or holiday entitlement negatively affect staff morale
A digital HR process enables companies to automate HR paperwork electronically, including on-boarding and orientation processes for new associates accepting offers, as well as updating existing associates’ files with revised or newly created policies and procedures.
The automated digital process also captures acknowledgement of forms with signatures and validations.
By introducing paperless HR a company becomes more efficient and saves time and money throughout the administrative life cycle of employee records.
40 page paper documents that were completed manually for new hires every month, which take a minimum of 40 minutes to scan, file and index each field, can now be part of a streamlined digital process with fewer physical transactions and consistency across all personnel files. Plus, the associate’s time for completing orientation documentation is greatly reduced.
HR process automation
An electronic HR system features an interface that automatically populates and links data based on job position and location.
Validation of information such as name, address, national insurance or social security number based on background checks takes place prior to pre-populating forms.
Photographs are captured and associated with forms. Electronic document management eliminates the need for print, scanning and indexing, and forms are automatically saved to an associate’s file.
Paperless HR benefits throughout admin life cycle
Epson Europe is just one of our client case studies that attests to increased business efficiency with digital HR. Epson HR professionals are far more confident that data is being stored in a secure and compliant way.
Epson is able to assign retention procedures and policies automatically to each document type, and prove regulatory compliance for the purposes of internal and external audits.
Centralised documents also mean that everyone has access to up-to-date documents.
Starting to prepare for paperless HR
As HR departments handle personal information and GDPR-sensitive data (e.g., employee addresses, healthcare and banking information), HR professionals sometimes worry about keeping information secure.
What steps can you take to alleviate data privacy concerns in the HR team?
- Demonstrate how security, pre-set access levels and digital audit trails are more reliable than paper systems.
- Demonstrate how the HR team’s time will be freed up to work on more strategic tasks.
- Present the business case for paperless HR and the measurable ROI in terms of time and money.
- Present the evidence for more robust compliance with digital HR systems compared with paper processes that expose companies to potential liability owing to lack of security or lost paperwork.
Digitising current and archived HR paper records
- Back scanning is a relatively painless way to achieve a centralised digital system in a much quicker time-span than you may imagine.
- Document Logistix has an in-house bureau that has assisted many HR departments to capture historical data using intelligent data capture.
Document Logistix HR customers have become trailblazers in their companies and advocates for paperless processes. They cite operational efficiency (with instant access to organised HR records), security and assured compliance as major benefits of the paperless office.
Ways to accelerate the use of paperless HR processes
Today, HR teams have a greater paperless requirements as remote staff have to find effective ways to collaborate. Company executives and employees look to HR for up-to-date information as well as strategic and practical and help.
Our case study about how a foods production organisation with 7,000 employees rapidly enhanced its HR digital processes illustrates how quickly digitisation delivers a ROI.
The company eliminated tonnes of paper from its processes and today works across multiple locations in a greener, more effective way.
The case study also provides access to a webinar recording in which the company’s leading paperless advocates discuss how they successfully planned for and rolled-out electronic document management in the HR department. Topics discussed include:
- Standardising HR systems
- Process review, implementation and goals
- Staff inclusion, training and culture change
- HR document indexing and creating a dashboard
- 24/7 remote access (“a pandemic godsend”)
- Data compliance
- Benefits to date and future opportunities
Paperless HR assures compliance
The advent of GDPR in 2018 changed the data privacy landscape. Since the introduction of GDPR the risk of fines has increased and there has been a massive rise in the number of subject access requests (SARs).
Digital document management enables organisations to store and share information in a compliant manner. Data can be retained and purged automatically according the mandatory retention periods with which they are associated. Plus, the assignment of access rights ensures that no one can see sensitive data as it is reliably redacted (masked).
Paperless HR document data compliance management is quick and reliable compared with the minefield and complexity associated with paper-based systems and manual processes.
Paperless HR document management presents you with a range of digital-first compliance functions, including: encryption, redaction, acess controls, automated retention and time-stamped audit trails.
Ask about introducing GDPR-compliant document management or ask how electronic HR document solutions could help your company in the UK or the USA.
Paperless HR Software FAQs
What is paperless HR?
Paperless HR is a digital approach to human resources management that replaces paper files and manual processes with electronic document management, automated workflows and secure digital employee records.
What are the benefits of paperless HR software?
Paperless HR software helps organisations to reduce administration costs, improve compliance, automate onboarding processes, increase efficiency and securely manage employee documentation from a centralised digital system.
How does HR document management software improve efficiency?
HR document management software enables teams to retrieve employee records instantly, automate repetitive administrative tasks, reduce manual data entry and streamline HR workflows across recruitment, onboarding and compliance management.
Can paperless HR help with GDPR compliance?
Yes. Paperless HR systems help organisations support GDPR compliance through secure document storage, access controls, audit trails, automated retention policies and controlled sharing of employee information.
What documents can be managed with a paperless HR system?
A paperless HR system can manage employee contracts, onboarding forms, right-to-work documents, training records, performance reviews, disciplinary records, payroll documentation and compliance-related HR files.
How does digital employee file management reduce costs?
Digital employee file management reduces physical storage requirements, printing costs, administrative time and the risk of lost documentation while improving productivity and access to information.
What is HR workflow automation?
HR workflow automation uses digital processes to automatically route, approve, store and manage HR documentation and tasks, which helps organisations to improve accuracy and reduce manual administration.
Is paperless HR suitable for hybrid and remote working?
Yes. Paperless HR systems enable secure remote access to employee records and HR processes and makes them ideal for hybrid and remote working environments.
How secure are digital HR records?
Digital HR records can be protected with encryption, user permissions, audit tracking and secure cloud or on-premise storage to help organisations safeguard sensitive employee information.
Why choose Document Logistix for paperless HR?
Document Logistix provides secure HR document management software designed to automate HR workflows, improve compliance, reduce administration and support efficient digital employee record management.
Related HR systems articles
Human Resources Best Practices
A Complete Guide to Digital Document Management
Guide to Records Management Systems
