What is an Electronic Document Management System, and How Can You Use One in HR?

It’s essential to efficiently and effectively access the HR documents you need to do your job. Without easy access to this information, processes become laboured and resources drained. 

Surprisingly, it's a pretty common problem facing organisations. But this sort of difficulty doesn't need to exist in the modern business world. Not when there are digital solutions, like PayFit, that exist to make document management easier.

If you think your document filing system could do with a spruce up, read on to find out how an Electronic Document Management System (EDMS) can benefit your HR processes.

What is an EDMS (electronic document management system)?

An electronic document management system or EDMS is a centralised system where companies can create, store, process and edit documents. Think contracts, invoices, marketing materials, employee handbooks and more. Centralising document management like this means everyone is accessing the same documents, removing the risk of duplication or outdated information.

Key features of an EDMS

If you're currently scouring the web looking for a suitable e-document management system, consider the following features before signing up…

• Advanced search and find capabilities. You want a system that helps you organise and retrieve documents with ease, so an advanced search functionality is essential. 

• Version tracking for audit trails. By storing and editing documents digitally, you can track all amends, improving accountability organisation-wide. This transparent approach to document management helps improve collaboration. 

• Access control. Role-based access controls mean you can control who has what permissions. This approach means not just anyone can access the most sensitive information.

• Automated workflows. Workflows for onboarding document collection, for example, make the process more efficient. Automation replaces long, drawn-out manual processes to keep bottlenecks at bay.

• Marketing-leading integrations. You need an HR system that seamlessly integrates with payroll and other business apps like Slack and Google Drive, as well as accounting software like QuickBooks and Sage.

Intuitive user design. You need an EDMS system that encourages user adoption, and that means finding one that has a user interface that's easy to navigate.

Five advantages of a document management system in HR

Not only does EDMS software reduce your reliance on paper-based documentation (and, let's face it, there's a ton of admin in HR), it enhances collaboration across departments, improves data security, accessibility and more.

Supports collaboration

We all know seamless collaboration drives business growth, and that's what an EDMS document management helps facilitate. Effortless document management means no more sloppy duplicates or clumsy human errors; instead, you can access centralised documents with in-built revision control features. 

Revision control features ensure every team member is working from the same document version. Minimising errors and duplicates, and therefore improving team collaboration.

Enhances data security

Although you can access cloud-based systems from anywhere with an internet connection, surprisingly, the security is tighter than the alternative paper-based solution. With two-factor authentication, data is under digital lock and key.

An e-document management system safeguards sensitive information and helps you comply with UK data protection laws like GDPR.

Improves accessibility

As the modern workplace shifts to more hybrid working schedules, digitising every aspect of your business ensures processes are more dynamic and agile in response to changing needs. Centralising your data management in a cloud-based payroll software means teams can work remotely, safely and securely accessing important HR and payroll documents, like employee contracts, from wherever they are in the world.

Better employee experience 

Being able to access HR documents from a single source of truth means there's no back and forth through other systems. You can rest assured that the document you're accessing is the most up-to-date version of itself. 

This improves the user experience tenfold for HR managers and employees alike. HR managers gain confidence in the efficiency of electronic document management, and employees can self-serve through individual portals and update their information. 

Standardised document management company-wide

If your company has multiple locations or has some team members who are remote, it makes even more sense to digitise your HR document management.

Manual document management doesn't even make sense for smaller companies, let alone multi-geographical ones. By introducing an EDMS system, you standardise document management across the company; this standardisation makes it easier for users to search and retrieve documentation and ensures consistency and accuracy in document management.

Real-world use cases: EDMS in HR

Your HR department deals with large volumes of sensitive data. So, finding a way to securely store and manage it is essential.

Not only does storing it digitally help to speed up access to these documents, it reduces reliance on paper-based document storage, keeping everything secure and compliant across the organisation.

But how can you effectively use EDMS software to benefit HR processes specifically?

Streamline recruitment and onboarding processes

From digitising and organising job applications to creating tailored onboarding workflows based on job role or level in the company. An EDMS can help take the weight of admin tasks associated with this process. 

Manage performance reviews and development

Use your EDMS to store and track employee performance and facilitate performance-related communications, including setting up review campaigns and sending out anonymous surveys. 

Secure employee record management 

Ensure all employee data is securely stored and accessible to those who need it. Use your EDMS to edit employee information in real-time, removing document and data duplication and incorrect records.

Making life easier: PayFit's document management features 

Although not primarily a document management system, PayFit offers customers helpful document management features to streamline HR and payroll document management needs. Alternatively, you can build your own custom integrations using our Open API, so you can plug your existing EDMS into PayFit for ease.

So, aside from being able to run payroll in a few clicks or automate the onboarding process, we offer these fantastic document management features, too…

Digital document storage

Storing documents introduces efficiency into your HR processes. You're not having to faff around trying to locate the correct documents, which improves the employee experience, too. In PayFit, you can store all kinds of HR documents, including employee contracts, P60s and P11Ds. 

Real-time digital payslips

It's not just contracts you can store in PayFit; all digital payslips are stored in the platform, and can be accessed by employees through their individual employee portals. Easy access to these documents not only puts power in the employee's hands but also makes generating and distributing payslips even easier for HR and payroll team members. 

Electronic signature forms

Let's take employee contracts as an example here. If you want to ensure documents are both legally binding and digitised, you can make use of PayFit's electronic signature forms. These forms make signing documents a breeze. What's more, your signed documents are stored electronically within PayFit, which means everything employee-related is under the same roof. 

Digital transformation is taking over the HR and payroll world, digitising every aspect to help streamline your processes, means you have more free time to focus on add-value tasks like strategic planning. 

It's time to let go of the archaic processes delivered via legacy systems and embrace the efficiency of modern tech.

To witness PayFit’s document management features, book a personalised product demo with our friendly team.