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The Hidden Prices of Lacking HR Paperwork

If your Human Resources department is like most, you still use paper for at least some types of employee files. It's not your idea of ​​paperwork taking up your day – and not just document-intensive tasks like employee onboarding. Almost every facet of effectiveness depends on the processes of HR document management. We know there can be significant legal risks if personal data is not managed effectively, but that's where the costs start.

Let's look at some numbers.

  • One study found that HR workers spend 71% of their time on service delivery, records, compliance, and internal management.
  • A survey on Software Advice found that employees in traditional offices an average of 6 hours per week physically searching for paper documents and an additional 8 hours to put them together into reports .
  • The average knowledge worker spends 36% of the working day searching for and consolidating information according to an IDC study. And after searching, they will only find the documents they need 56% of the time.
  • According to a PwC study 7.5% of all documents are lost and another 3% are incorrectly filed.
  • It costs $ 120 in your time to find just a single lost document and $ 220 to reproduce from scratch.

Given the enormous number of documents that the HR departments are responsible for creating and maintaining, it is not surprising that some are lost. Have you ever thought about what it will cost you? And you have to waste even more time trying to find a signature for the document.

Employee files are full of required documents and HR staff spend hours looking for them.

Save time and money

In the Software Advice survey, 91% of respondents said that using a software-based document management system made it easier to find files, and 84% said it would make it easier to generate reports.

Because there are so many different types of forms and documents that the human resources department has to deal with, it is difficult to organize and it is easy to make a mistake. A software solution provides context by allowing you to add tags. It's easier to find what you're looking for when you don't have to remember the file type or location. And while a physical document may be filed incorrectly, an online solution will find it every time.

According to a report by the Association for Information and Image Management (AIIM), documents without labeling or indexing appear meaningless to anyone who does not work directly on them. “The result is that documents are treated in as many ways as there are users. In a medium to large organization, this quickly leads to chaos. “ The study found.

With a document management platform, you can find missing documents in seconds instead of hours. And instead of sending forms to employees for signature, you can also have them signed electronically. According to Gartner's Hype Cycle for Human Capital Management Software Report 2014, digitizing HR documents can result in productivity savings of 15% or more.

An automated system also saves you time by keeping track of the various retention periods that HR documents require and automatically notifying you when the retention period has expired. Alternatively, instead of manually sorting through everything and hoping you find them all, withhold deletions on all files related to a lawsuit.

Transformation of HR document management

A Deloitte study found that the HR department is in a profound and rapid change as it is supposed to take on a larger role in the digitization of organizations. 56 percent of the companies surveyed said they were redesigning their HR programs to integrate digital and mobile tools.

These tools become even more important as technology advances. By adopting an automated document management solution that can serve as the central HR document repository, the “only source of truth”, you are preparing for a future that includes advanced technologies such as machine learning and robot process automation to drive HR to make it even more efficient

In the meantime, as you plan your next budget cycle, you can do some calculations to show how much money your company would save by automating your document management.

To learn more about the software and process functions that enable effective HR document management, read our e-book: What HR Executives Need in a Document Management Solution

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