How Electronic Employee Files Support Human Capital Management
Your business is committed to enhancing customer relations by creating better customer experiences. Does this philosophy hold true when turning the spotlight on your business and the way it handles employee file management? It doesn’t end with onboarding. As businesses grow and evolve, their needs change, as do the needs of their employees and contractors. By supporting Human Capital Management (HCM) with electronic employee files, you can ensure that your HR department has access to timely, accurate information at all times.
What Is Human Capital Management?
Human Capital Management is concerned with the management of workforce acquisition, workforce management, and workforce optimization. Usually, these areas of need are addressed using software applications and systems put in place to help manage the life cycle of every employee and contractor that enters your workforce. It might be your primary HRIS application, like Workday or Saba, or a complementary solution for tracking applications, onboarding, performance management, or payroll. These systems are critical for managing employee data effectively and maintaining statutory compliance in HR. What these systems lack is a reliable way to digitize information into electronic employee files for secure storage in a centralized repository.
Fortunately, this can be accomplished with the use of Optical Character Recognition (OCR) software and automation. With OCR software, every employee file that enters your organization, whether by mail, email, fax, or otherwise, can be “scanned” for information. This information is then captured and stored automatically according to your HR business rules, resulting in numerous operational and cost-saving benefits.
The Benefits of Electronic Employee Files and HCM
If your business still relies on paper documents to store employee information, you can make significant improvements to your HR department by simply digitizing those files. Paper-based practices are rife with errors and lack security. What happens if an employee file goes missing? Or is destroyed? The cost to reclaim that document spikes the moment it falls off your radar, which is why electronic employee files are such a game-changer for HR.
- Capture and store employee files electronically, facilitating secure and immediate access when needed
- Automate retention policies for stress-free compliance and faster audits
- Enhance your level of internal service
- Provide convenient desktop and mobile access to electronic employee files
- Integrate with HRIS applications to update electronic employee files in real-time between databases
- Leverage a secure system of record for employee information
- Eliminate paper filing and storage, reducing the risk of lost, damaged, or destroyed employee files
- Identify missing documents with ease
- Secure your business with Disaster Recovery and Business Continuity planning
SHRM Confirms the Advantages of Electronic Record-Keeping of Employees Files
According to SHRM, “Employers often choose to maintain records electronically rather than keeping paper files. This relieves the need for physical storage space for employment records over a span of many years, which may save money and time. Also, electronic storage facilitates easy retrieval of information and allows for efficient access to documents. Organizations may also elect to go paperless as part of a commitment to sustainability.”
Furthermore, they find that “private on-premises systems offer more control in determining how to use, store, and locate data.” Therefore, if your business doesn’t want to rely on a vendor to ensure access to employee files, an on-premise solution might be more suitable than a cloud-based solution that offers less autonomy and flexibility. There are pros and cons for each type of system, so it’s recommended that you talk to an expert who can help you determine the solution that best suits your requirements.
Start Your Digital Transformation With Electronic Employee Files
What better way to start your Digital Transformation than by digitizing employee documents to ensure that the individuals who play a key role in your shared success are being treated with the respect they deserve? No employee wants to wait weeks to hear about the status of their time-off request or be left in the dark about whether or not their insurance was updated. With electronic employee files, information can be accessed at the touch of a button to serve streamlined experiences that bring your team closer together.
To learn more about IntelliChief for Human Capital Management, including electronic employee files and HR Automation, read our Case Study.