Human Resources is one of the most paper intensive roles in a company. Every employee has a folder of documents, even job search candidates generate documents. Onboarding and Separation generate their own set of documents, and the IRS has its own set of requirements. On top of that, employee records must be secured and adhere to strict retention standards.
An investment in document management software for human resources now will benefit your company in the long run in the following ways.
- Compliance
The most compelling reason to have a formal, effective document strategy in place for HR is the law. Numerous federal laws require employers to store certain employee records.
Some must be stored in a secure environment. Many have specific retention periods. Your document storing system helps ensure that you comply with all of the relevant requirements.
- Legal protection
In addition to federal requirements, you need to be able to readily access employee documents to answer regulatory audits and inquiries, employee complaints, and lawsuits.
For example, if an employee lodges a discrimination complaint, you may need to access performance appraisals, compensation data, time and attendance records, hiring documents, and more.
If the complaint grows into an investigation by the Equal Employment Opportunity Commission (EEOC), you may need to provide similar documents covering an entire class of employees. Often these requests are time-sensitive.
A document management policy ensures that you can produce the full HR records you need promptly.
- Security and privacy
Employers are also legally required to secure sensitive employee data, including medical information, information on disabilities, Social Security numbers, and other personal information.
A document management system prescribes security protocols to meet those requirements. Examples include locking physical files, securing computers and other information technology (IT) equipment when not in use, and protecting electronic data with passwords and encryption.
- Administrative efficiency
The only thing worse than working through a mountain of administrative paperwork is climbing that mountain over and over again, hunting for documents and recreating lost data. A document management plan is critical for efficient, organized HR administration.
- Data flow
An effective document management policy streamlines document access and sharing for efficient workflows. When you have a clear location and path for every document, you can ensure that the right documents are available to the right people on demand.
HR electronic document management further enhances data flow and access.
(Source: The Ascent, a Motley Fool Service)