5 Key Benefits of Document Management for Human Resources Departments

5 Key Benefits of Document Management for Human Resources Departments

HR departments have their work cut out for them when reaching out to the best talent while ensuring they stay compliant with all labor laws and data privacy regulations. Nonetheless, those who are still working with paper files stored in rows of filing cabinets aren’t likely to achieve either of those goals, at least not without a great deal of extra work.

Human resources manage a variety of compliance, regulatory, and business policies, which is why it’s important to provide them with the necessary tools to ensure that compliance and obligations are being met and that the best employees are chosen for the job. Given the central role that documents play in any HR department, a document management system will be one of its most critical assets. Here are five reasons why:

#1. Efficiency

HR departments routinely handle hundreds of printed and digital documents ranging from résumés and application forms to insurance policies and tax forms. It’s no wonder that they often seem to take forever to respond to an application, sometimes long after the applicant has already found another job. This is, of course, a very inefficient way to run the operation, but it’s a common problem nonetheless.

Document management greatly enhances efficiency by digitizing printed documents and storing them in easily searchable formats in a centralized repository. That way, there’s no missing documents or lengthy delays when handling routine tasks.

#2. Security

Many documents that pass through the HR department contain sensitive information, such as tax and payment details, patient health information and criminal record data, all of which are subject to strict compliance regulations. This highlights the need for an organized system for storing data and managing document lifecycles, which is not something you’re likely to achieve without a centralized infrastructure.

Not only does document management bring everything together under one hood to make security protocols easier to implement – they help you meet industry-specific compliance regulations such as HIPAA, FINRA and SEC.

#3. Collaboration

A common problem in many businesses is the inability for different departments to communicate effectively with one another. In the case of human resources, this may lead to missing out on the most suitable talent or not being able to boost the morale of existing employees. Moreover, your HR personnel needs to have instant accessibility to staff records to comply with labor laws.

A cloud-hosted document management system like PaperSaveCloud is centrally managed and secure, which enables better collaboration throughout the entire organization, since all team members will have access to the same information.

#4. Adaptability

One of the biggest operational challenges that modern companies have is ending up facing a brick wall the moment they’re ready to expand into new markets or meet an increased level of demand. Oftentimes, their existing systems lack the flexibility and adaptability to scale with that demand, which inevitably leads to missing out on new opportunities.

Technology doesn’t have to be the enemy. With a remotely-hosted cloud-enabled system at your disposal, you’ll never have to worry about running out of storage space or running into problems when relocating office or making any other major changes to your HR department.

#5. Costs

Working with printed documents is expensive not just because it often involves a lot of photocopying and printing, but also because it’s inefficient. When your HR team doesn’t have immediate access to the information it needs to function optimally, staff will end up spending their time rifling through a mix of filing cabinets and digital storage systems to find what they need. That all translates into increased costs.

Modern document management solutions consolidate everything, thereby enhancing accessibility and operational efficiency while greatly reducing, if not eliminating entirely, your reliance on printed documents. Simply put, it’s greener and more affordable.

PaperSave helps you get your organizational workflow back on track by automating your transactions, meeting compliance obligations, and ensuring easy access to mission-critical information. Read our free whitepaper: 9 Reasons why you need document management systems to learn more about how we can make your HR department more efficient.