Paperless HR management is becoming inevitable

The structure of classification is now quite organized and is set up in categories and subcategories to cover all of an employee’s personal and professional situations. You can, for example, create a recruitment category with subcategories for different types of employees. The digital records of employees use the classification scheme of the companies for which they work. Companies usually keep HR administrative documents one year after an employee has left and then archive them.

Companies have clearly transitioned to making their HR departments paperless.

E-vaults have thus become a high-value service that a company can offer its employees, who can centralize all the employer’s documents, payslips, work contracts and annual reviews and also store personal documents in such vaults.

There are a variety of companies in the market that provide online services to store documents. Their economic model has changed, however. As of this year, there has been a limit on the number of e-vault services available. Employees that want to use other types of services for their e-vault, such as storing phone bills or online bank statements, will have to pay a subscription fee.

This is quite revolutionary and is just beginning to become common practice. Until recently, employees resisted the use of electronic payslips because they felt that paper was more tangible and thus more reliable. The Labor code has helped to change minds and has also encouraged the use of other services outside the company.

A digital HR record focusing on the employee

In the private sector, the classification scheme is selected by each company. Digital records already exist in HR electronic document management systems.  Today, companies are going a step further by centralizing employee data. A simple keyword search will find any type of data useful to the user or specific applications. The different applications that manage, for example, recruiting or time and attendance, transfer their data to the digital record. Employer e-vaults are also available to store all of an employee’s payslips.

HR sends the data to each employee’s e-vault, but the HR system never directly accesses the employee’s vault.

A key component of Core HR

The digital HR record is a key component of Core HR in a company’s HR information system because it provides interoperability with external applications. The use of electronic signatures, in particular, has increased over the past few years. Special identification methods have also been developed to certify a document at a specific date so that it cannot be altered afterwards. The digital HR record ensures that the signed document, such as an amendment or a contract, is kept.

There is a strong trend towards companies using digital HR records. However, a certain ‘digital literacy’ is required and the HR processes involved need to be digitized. Companies are beginning to adapt, because electronic documents not only ensure data security and compliance with regulations – especially fraud, since they are sealed – but also greatly reduce costs compared to paper and increase the productivity of HR departments. The development of blockchain (*) technology will make certification easier and should increase the use of electronic documents.

(*) A ‘blockchain’ is a distributed database with a continuously growing list of records, called blocks, which are linked and secured using cryptography.