HR document management: What it is, examples, benefits, and more

Many businesses are hampered by outdated HR document management systems. Ineffectively managing your documents opens you up to a whole host of compliance risks — think potential data breaches and unhappy employees, not to mention more work for you and your team.

Whether you're a small business owner or an HR manager, having the right strategies for HR document management can make a huge difference. In this article, we explore the benefits of HR document management, show you how to build an efficient system, and point out what to look for in the right software.

What is HR document management?

HR document management involves organizing and managing all the paperwork and digital files in a company’s HR department. This includes everything from employee-related files, like contracts and medical records, to company policies and tax forms.

Here’s what HR document management involves:

• Storage and organization: Documents can be stored physically or digitally, with systems that make it easy to organize, find, and manage them.

• Accessibility and retrieval: Authorized staff have quick access to the documents they need.

• Security and compliance: Protecting sensitive documents is critical, as is adhering to privacy laws like GDPR in Europe or HIPAA in the US.

• Retention and disposal: Ensure documents are kept for legally required periods and safely disposed of when they’re no longer needed.

• Automation and workflow: Many systems automate routine tasks, which improves efficiency and reduces the risk of errors and helps keep the HR department running smoothly.

What are the benefits of HR document management?

Effective HR document management does more than just tidy up your files — it enhances your entire operation. Here’s how.

1. Stronger security and better compliance

When it comes to sensitive employee data — especially when that data travels across borders — security is a must-have. If you’re not careful, private information can easily land in the wrong hands. 

Fortunately, advanced security features like such as encryption and secure access control can protect sensitive data from unauthorized access. They also help organizations meet legal requirements by keeping accurate records and upholding privacy standards.

2. Automated HR workflows

Automation is one of the most significant benefits HR document systems provide. It streamlines processes like onboarding and offboarding, guides documents through routing and approval workflows, and manages reminders and notifications.

Plus, it automatically keeps employee records up to date. This means less paperwork and more time for HR professionals to focus on what really matters — people.

3. Easier access to crucial HR documents

HR document management keeps all HR-related paperwork organized, making it easy for authorized personnel to quickly find what they need, no matter their location. This saves valuable time and cuts down on the hassle of sifting through disorganized files.

Such ready access to documents is particularly important for time-sensitive situations, like responding to legal requests or handling urgent employee issues.

4. Better employee experiences

HR document management speeds up and simplifies how employee requests, like updating personal details or accessing specific documents, are handled. 

Some systems, like Remote HR Management, even offer self-service portals where employees can manage their own information anytime, anywhere.

5. Lower costs

HR document management cuts costs by reducing the need for physical storage (like filing cabinets) and automating routine admin tasks. The savings stack up from using less physical space and paper to reducing labor costs thanks to increased efficiency.

This is beneficial for companies with teams in different locations, where operational costs can differ greatly. It's a smart move for streamlining expenses company-wide.

What key features should an HR document management platform have?

Wondering what to look for in an HR document management platform? Let's break down the top features you need.

Access control and security

To safeguard sensitive information, the platform should feature role-based access control. This limits data access to authorized personnel only, alongside encryption and secure data transfer to prevent unauthorized access.

Compliance management

Regulatory compliance is non-negotiable. Ensure the platform includes audit trails to track document access and modifications, as well as document retention policies to legally hold and then dispose of documents.

Document storage and organization

A central location for all HR documents, with robust categorization and tagging systems, makes it easy to store, organize, and retrieve files efficiently.

Search and retrieval

Advanced search capabilities, including indexing and full-text search, allow you to quickly find documents. This saves time and increases efficiency.

Workflow automation and notifications

Automated workflows streamline processes like document approvals, while notifications keep everyone in the loop about important updates and required actions.

Integration capabilities

The platform should integrate smoothly with other HR systems, like HRIS and payroll, to facilitate seamless data flow and minimize the need for manual data entry.

Backup and disaster recovery

Regular data backups and a solid disaster recovery plan are critical to preventing data loss and quickly restoring operations in the event of a system failure.

Document editing and collaboration

Collaboration tools, version control, and document-signing capabilities help facilitate teamwork and ensure document integrity and traceability.

User-friendly interface

An intuitive user interface, coupled with mobile accessibility, allows users to navigate the system effectively — even if they’re not tech-savvy.

7 steps for setting up HR document management software

Setting up HR document management software doesn't need to be complicated. Follow these seven simple steps to get your system up and running smoothly.

1. Assess your needs

Start by taking a close look at what your HR department truly needs. Consider the document types you handle, who needs access to them, and the compliance rules you must follow. Also, think about any challenges you're facing with your current system.

Understanding your needs will help you choose the right HR document management software solution that meets your unique requirements.

2. Choose the right software

Now, it’s time to determine what you need from the software. Do you need features like automated workflows, robust data security, and compliance tracking? What about easy integration with other types of HR systems, like payroll or performance management?

Further factors to consider include:

• User-friendly interface

• Customization options

• Customer support

• Vendor reputation

• Scalability

Choosing the right software will set the foundation for a more streamlined and efficient HR department. So, take your time to pick a solution that best fits your team's needs and future goals.

3. Organize existing documents

Before moving to the new system, sort through your current HR documents. Start by auditing what you have to categorize and prioritize for migration. Then, clean up the data by deleting duplicates, updating outdated info, and getting rid of files you no longer need.

Finally, arrange the documents in a logical order — like recruitment, payroll, and employee records — and set a consistent naming convention for all files and folders.

4. Upload the documents to the software

If you're moving from a paper-based system, begin by scanning and converting all important paper files into digital format. Once scanned, import these digital documents into your new HR document management software.

As you upload, make sure each document is correctly tagged and filed according to the organizational structure you've set up. This ensures that everything is neatly organized and easy to find later.

5. Implement security measures

Don’t forget to keep your electronic documents safe. Set up user roles and access permissions that reflect each employee’s job function and the data’s sensitivity so you can control access to sensitive employee information.

Also, use encryption to protect data, whether that data is stored or in transit. Turn on audit trails to track document activities and make regular, secure backups to protect against data loss from unexpected hardware failures.

6. Automate your workflows

Streamline your HR process by automating essential tasks. With automated workflows, you can manage onboarding, leave applications, and performance reviews effortlessly.

For example, when a new employee is onboarded, the system can automatically kick off necessary tasks, like ID verification, contract signing, and policy acknowledgment. This saves time and cuts down on manual processes, reducing the chance of errors.

7. Integrate with other systems

If possible, link your HR document management software with other HR systems, like payroll, performance management, and recruitment tools. This integration allows for data exchange and improved efficiency across departments.

Remote, for example, integrates with more than 5,000 HR tools, making it easy to sync data and automate tasks across your HR department.

5 best HR document management solutions

Ready to organize your HR paperwork? Check out our top five picks for the best HR document management solutions.

1. Remote

Best for: International and remote teams

Perfect for global and remote teams, Remote simplifies HR management by bringing everything into one secure platform. It offers:

• Unlimited employee and contractor management

• Effortless onboarding

• Simple approval flows for requests like time off and expenses

Plus, Remote empowers employees to self-serve, allowing them to create their own documents, like pay stubs and proof of employment, in just a few clicks.

2. BambooHR

Best for: Small and medium-sized enterprises (SMEs)

BambooHR stands out with its comprehensive set of HR management tools. It's user-friendly, offering features like employee self-service, streamlined onboarding, and easy access to employee records. This makes it simple for smaller businesses to manage their HR tasks effectively.

3. GoCo

Best for: Flexibility

GoCo shines for those who need flexibility in their HR document management. It offers customizable workflows and excellent integration capabilities, making it easy to tailor to your specific needs.

Plus, GoCo’s strong focus on employee self-service and mobile accessibility allows staff to manage their HR needs on the go, providing convenience and efficiency for dynamic, modern workplaces.

4. Revver

Best for: Complex document management needs

If you’re dealing with complex document management, Revver — formerly eFileCabinet  — is the solution for you. It smartly organizes files and allows secure sharing, and its customizable permission settings, fillable forms, and document request features enhance functionality. 

Revver’s integrated electronic signature capabilities make it easy to get quick approvals — which is great for businesses with extensive and sensitive documentation needs.

5. Eddy

Best for: Local teams

For local teams that prefer simplicity, Eddy is a great choice. It provides essential HR management features through a user-friendly interface and comes without the cumbersome complexity of larger systems. Plus, its responsive customer support ensures help is just a call away at all times.

Best practices for HR document management

Want to get on top of your HR document management but don’t know where to start? Follow these best practices to keep your documents well-organized, easily accessible, and fully secure.

Use a compliance checklist to ensure legal protection

Compliance isn't just important — it's mandatory for avoiding penalties and legal problems. Using a compliance checklist helps you cover all the legal bases, offering your company a layer of protection while ensuring every process adheres to local laws.

Implement strong security protocols

Given the sensitive nature of HR documents and the reality of globally dispersed teams, robust security protocols are a must.

Implementing encryption, secure authentication methods, and user permissions helps protect sensitive data from unauthorized access. These measures ensure that your team's personal and confidential information remains secure, no matter where members are located.

Use cloud-based solutions

Opting for cloud-based file management means your HR documents are always just a click away, no matter where you are. This is especially important for remote and international teams, as it enables real-time updates and access.

By using cloud services, you guarantee that your team can access the necessary documents on the go. This keeps everyone in sync and makes collaboration easy, no matter the distance between them.

Conduct regular audits and reviews

Periodic audits and reviews should be a core part of your HR document management routine. These checks help ensure that everything is up to date and running smoothly, safeguarding your organization against compliance breaches and improving its overall efficiency.

Regularly back up documents

Make it a habit to regularly back up your HR documents. Consistently saving backup copies helps ensure that you can quickly recover vital data in case of hardware failures, cyberattacks, or other unexpected events. Plus, it means you’re always prepared and can quickly bounce back from problems with all your essential data intact.

Master your HR document management with Remote

Effective HR document management opens the door to organized, less stressful operations. By spending less time searching for documents, you have more time to focus on more important matters — your people. Plus, a good system in place leads to compliance in all the countries in which you operate.

Remote makes it easy to manage the employee lifecycle, along with all the documents that come with it. Hire, manage, and pay your international team all under one roof. And when your team grows, we grow right with you.

Chat with our experts today to take charge of your HR documentation.

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