Technology is changing the way we do business in every industry, so it should be no surprise to see that the HR world is happily transforming their processes with the use of human resources software.  A recent study showed that only 23% of offices in the country are still using a completely paper-based filing and storage system. The other 77% of offices are adopting document management programs that are allowing them to go at least partially paperless. There are many reasons to have a paperless office as a goal, but the main motivating reason for most offices is to save time, save money, and protect valuable information.


Save Time

This is by far the most often cited advantage to utilizing a digital file manager in HR departments. They might be called human resource departments, but the people working in these offices are actually more involved with paper than anything else. Every employee hired creates a whirlwind of files, information, payroll notifications, and other such documents.  When these paper documents are transferred to a Document Management Software, or DMS program, then a lot of time can be saved in the following ways:


Easier File Recovery

In most paper-based offices, the file cabinets in HR are there because there will be a need to retrieve and review those documents at some point. In the aforementioned study done by the New Jersey-based Archive Systems, Inc., they found that HR managers who had gone paperless spent half the amount of time in their day searching for needed files.


Simpler Data Entry Processes

When information has to be added to a file, it brings up the need to find the file, and properly affix the new document to the folder. Having human resource software in place allows for this data to be added with a few clicks.


Better File Sharing Capabilities

One of the main issues HR departments run into is difficulty in sharing the information they have with the parties who need them. A hard copy can’t always be easily copied and sent to the right sources, at least not in a timely manner. In other cases, having multiple offices creates multiple file storage places. A DMS system will offer a central location for information to be stored that can easily be shared with all parties in need.


Fewer Lost Items

Paper is not the hardiest of materials. It can be destroyed by ripping, burning, flooding, and even just aging. It is light weight in single pages, and can be lost without anyone ever noticing. This makes for a lot of lost information. Lost pages can cause significant problems when it comes to HR needs. The New Jersey-based Archive Systems study also stated that paperless HR departments were over 70% confident that they had all the information they needed in their storage system. That was compared to paper-based departments that could only claim to be at most 50% confident that no important information had been lost.


Lower Chance of Human Errors

Sometimes lost files are in no way connected to the weakness of paper, but rather to the foibles of human nature. Filing documents in a digital file manager will remove much of the potential for human error to play a role.


Sophisticated Search Technology

One of the main reasons files are easier to locate with a digital file management system is because of the sophisticated search technology that is added. The same tenets behind Google’s search engine are implemented in these DMS programs.


Better Organization

Paper files in most HR departments will differ slightly from employee to employee. This will not be the case with paperless filing techniques. You will be able to organize information in the same logical way for every file.

When a human resources department is no longer forced to grapple with mountains of paper, they will find that their duties can be done far more efficiently. Saving time can lead to a lot of important benefits for the department, and those benefits will quickly trickle down to the rest of the company.


Save Money

For HR personnel, saving time is the main motivator for investing in a good DMS program. In order to get the powers that be to take the bait, however, it is important to present it in a way that can be understood by any business-savvy manager. That is why it is so important to know how human resource software can save organizations a lot of money. The following is a list of just some of the ways this is true:

Less Overtime
Many HR departments are notorious for needing overtime hours at certain times of the year. The end of a fiscal year, bonus payroll segments, open enrollment for insurance benefits, and new waves of hiring can all create a paperwork nightmare for HR departments. Utilizing a DMS system will make all of these times a lot easier on everyone involved, which will quickly eliminate the need for overtime paychecks.

Smaller Departments
With the use of a document management system, there is a good chance that you will be able to get your needed work done with a smaller amount of people. This means that as your company grows, you will not have to hire more HR representatives to cover HR needs.

Better Communication with Clients
A well-organized office inevitably enhances client communication, which will boost client retention rates and translate into a reputation for reliability and accountability in your industry or community.

Space Saving
Finally, document management systems allow organizations to save money by freeing up prime office real estate. With a DMS, there is no longer a need to allocate an entire room to document storage.


Protect Information

In the end, it is important to remember that your HR department houses a lot of personal and sensitive information for you, your company, your employees, and your clients. It is incredibly important that you keep this information safe and secure. That is much more easily done with a paperless file manager.

These are the reasons so many important companies and organizations in the country are turning to DMS solutions, including the Department of Veteran Affairs, and other branches of government services. If your HR is looking for a good way to save time, money, and offer more protection, then it is time to make the shift to a paperless office.