Benefits of Going Digital with Your Employee Files

Benefits of Going Digital with Your Employee Files

Employees are the most valuable resource in an organization. With that in mind, business managers and owners recognize the importance of having all their employees’ details in safe custody. Keeping employee records is not only necessary in adherence to state and federal laws but also crucial for a company’s purposes, such as tracking performance.

One of the core duties of the HR department is to maintain and regularly update these employee records. Unfortunately, businesses that rely on paperwork face a real obstacle in updating and maintaining physical employee files since they are labor-intensive and time-consuming. For this reason, digitization is becoming a top strategic priority for any business.

This post lists the most important employee files and the benefits of shifting to digital employee files.

Crucial Employee Records you need to Store

1.    Initial Employment Documents

  • Basic Personal Profile

A personal information form is one of the essential initial employment documents a company should store for its employees. It is a one-stop-point for quick employee details such as legal name, address and telephone number, emergency contact information, and social security number.

  • Employee’s Employment Record

Your business should keep information regarding the start date, wage rate, and employment status of all employees. Also, describe the position and responsibilities of an employee and keep a copy of the job application, resume and offer letter.

  • Employee Handbook

An employee handbook outlines the policies and performance expectations of an employee. It is important as it’s used to hold the employee accountable for your business procedures. Therefore, ensure to keep a form signed by an employee acknowledging they have read and understood the employee handbook.  

2.    Federal, State, and Union Documents

Any business must keep Form I-9, the WH-4, W-4, and CBAs and update them yearly in case of a government audit. 

Besides, ensure you retain a copy of background checks in your employee’s personal folder. It could be background checks on driving records, criminal records, education confirmation, and credit history.

3.    Performance Documents

A performance appraisal is a critical documentation form that summarizes the employee’s weaknesses, strengths, and performance goals. Ensure you keep these evaluations in the employee personal folder along with any accolades earned. Besides, add records on any training programs an employee has complete.

4.    Other Contractual Documents

You should keep any written contractual agreement document between you and the employee and keep it in their personal holder. It could be a confidentiality agreement prohibiting the employee from divulging business information to unauthorized parties or a non-compete agreement preventing the employee from soliciting company clients. Other contractual documents include sick-leave policy forms or technology-use forms.

Benefits of Going Digital 

1.    Improves Efficiency

Physical records and requests are labor-intensive and time-consuming. Besides, paper files and manual processes overwhelm your HR staff as they search through records and respond to requests. This affects productivity and ultimately hurts your bottom line. But with digital HR, records are searchable and organized, thus reducing the time it takes to respond to information requests.

2.    Resource Savings

By going digital, you reduce paper usage, which translates to cost savings. According to Deloitte, eliminating paperwork cuts the operating expenses by up to 25%. You eliminate the storage and management costs since digitizing employee files can free up several square feet of expensive office space.

3.    Better Security

Paper files are inherently insecure since they can move anytime, anywhere, and with anyone. Digital HR gives you more control over who can access the files. Since lost information could cost your business, money, and resources, security for your files makes good financial sense.

Shifting from paper documents to digital employee files reduces the chances of loss due to disasters or age-related deterioration. You can scan and store the files in the cloud and set security authorizations to ensure no one can access the information unless authorized.

4.    Improve Employee Experience

In the current digital era, employee experience is becoming more important than ever before. Employee experience refers to creating personalized, engaging experiences, meeting requirements, and facilitating your employees’ careers. Paper-based systems and processes fall short of their expectations since they are error-prone, tedious, and cumbersome. When you digitize records and transition manual processes to online, you provide a modern experience that allows them to complete their duties efficiently and productively.

Start Realizing the Benefits Now!

Business leaders today cannot ignore the importance of applying technology to their HR process. That is why going digital for any business is no longer a matter of why but when and how. At ASAP Payroll, we provide businesses with a wide range of digital solutions, including HR outsourcing, payroll processing, background checks, and more. Reach out to us today to learn more on going digital with your employee files. 


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