In some of our recent blog posts we’ve been exploring the idea of document management in Human Resources. As many professionals will tell you, despite the increasing digitization of business today the truth is that most Human Resources departments are still buried in paper.
As a result, HR professionals often spend more time, effort and money performing administrative duties than they do attracting, hiring and maximizing the human capital of the organization.
Document management software helps HR departments relieve the burden of paper that often plagues fundamental HR activities like recruiting, hiring, disputes, certifications and reviews. These activities together generate a staggering amount of documentation that starts even before an employee is hired and continues well after a person has left the company.
By eliminating paper when possible, and automating routine and mundane manual tasks, document management eases undue administrative burden and empowers HR professionals to concentrate on finding the best talent and fostering the best environment for the organization to succeed.
One example of how HR departments can find improvement with document management is the employee onboarding process.
When a new employee is hired the process involves a number of important documents; tax forms, benefit enrollments and employment contracts are common, as well as any number of additional documents including non-compete/non-disclosure agreements, employment eligibility forms and background checks.
It is not uncommon for a new employee file to grow to include 20 documents or more. Studies show that a typical onboarding document takes an average of 1.7 minutes or more to process. The result is over 30 minutes of data entry per employee. Indeed, companies say that the time spent keying data and searching for documents is the most pressing issue caused by paper-based processes.
For a company with hundreds of employees, especially in high-turnover industries, reducing the time-consuming paper chase can result in dramatic savings and significantly reduce administrative overhead.
Storing and retrieving HR documents is another area where savings and improvements can be captured with document management. Studies show that up to 60 percent of office worker’s time and 45 percent of labor costs can be attributed to documents. About one in every 14 is misfiled, resulting in handling costs of around $120 per document.
HR departments that automate the onboarding process begin to see immediate hard-dollar savings while allowing the department to concentrate on more high-value activities.
Employee onboarding is just one example of how document management can help HR. Multiply the productivity gains and savings to include common events and processes like annual re-enrollment or employee compensation claims and the compounding return on investment and process improvement from HR document automation becomes clear.
How do you know which document automation solution is right for you? Look for solutions that can help you relieve the burden of paper in the employee onboarding process and other common HR activities. Many new solutions are tailored specifically for HR.
Regardless, be sure that whatever approach you take that the technology and features allow you to grow and expand the scope of document automation as your needs grow. Look for solution providers with the right mix of experience, vision and capabilities that will allow you to leverage the full value of HR document automation.