Electronic Signatures - An Introduction For UK Businesses

Electronic signatures have been quietly revolutionising the way that small businesses get documents signed. The numbers are impressive - 80% of documents sent for signature are completed within 24 hours. And when you factor in both the paper and human costs of sending physical documents, businesses save on average around £20 per signed agreement using eSignatures instead.

With the number of electronic signature transactions having increased from 198 million to over 4.5 billion within the last 5 years, clearly the days of physical document signing are numbered.

Small businesses that opt to use eSignatures for their document signing processes can save time and money, increase their agreement completion rates, and likely stand to gain a competitive advantage over those still signing physically. 

So let’s delve into a world of digital signing, including how to create electronic signatures, and how PayFit now integrates electronic contract signing into its HR and payroll offering.  

What are electronic signatures?

As the name suggests, electronic signatures are similar to a physical (or ‘wet’) signature, the only difference being that they are electronic. In other words, rather than physically making a mark on a paper document or contract, electronic signatures (or eSignatures) can be completed on mobile phones, desktops, laptops and tablets, on a digital document such as a Word or Google doc, PDF, or Excel. 

Just like their physical counterparts, electronic signatures are legally binding in the UK under the Electronic Communication Act.

The benefits of using electronic signatures

The core benefits of electronic signatures revolve around time and cost savings, the ability to track the progress of documents sent for signature (when using a specialised software), ease of completion, and security.

Signatories don’t need to be in the same room to close a deal, or to sign a contract. Electronic signatures enable contracts to be signed online, remotely, from anywhere in the world. This also allows multiple signatories to sign the document at the same time, regardless of where they’re based. 

And let’s not forget that electronic signatures can be completed from a whole range of devices in a couple of clicks, be it at a desk or on the go, making it effortless for signatories. All of this helps to make the signing process quicker, easier and cheaper (no need to spend money on paper anymore).

Using eSignature software (such as YouSign, the tech powering eSignatures within PayFit), document senders can track their progress once they’ve been sent for signature, meaning you’re always up to date on who has signed, and who hasn’t. Recipients will get automated reminders, so you won’t have to spend time chasing them up to sign.

Electronic signatures are also far more secure than physical ones, as there’s no risk of the document getting lost or misplaced. Everything is stored securely, and each time a signature is completed it leaves a digital ‘stamp’, noting the signer’s identity, IP address, the device used to sign the document, plus date and time of signing. This creates an immutable document record, thus negating the need for physical witnesses.

How PayFit helps businesses simplify their HR document signing processes

PayFit has partnered with YouSign, a certified provider of electronic signatures, to power virtual document signing for small businesses across the UK. It’s the perfect solution for getting HR documents such as employment contracts signed quickly, securely and cheaply (it’s included within our Standard and Premium plans at no extra cost).

The electronic signature feature allows you to manage documents and have them signed electronically by up to eight signatories. This is essential for documents like employment contracts, amendments or end-of-contract notices.

From PayFit, you can:

• Share a document to be signed

• Manage the signature process from start to finish (including viewing the status of documents)

• Store the signed document, making it available to relevant employees.

Documents are added into a current or prospective employee’s record, making it simple to find and send them for signature. Admins then specify exactly who is required to sign a document, and in what order it needs to be signed (if required).

You can add signature, date and free text boxes wherever you need to in the document, with clear labelling helping signatories understand exactly where and what to write.

As Europe’s leading cloud-based payroll solution, we offer all the tools you need to manage and pay your people, and are trusted by over 16,000 small businesses. Alongside payroll, you’ll find a whole suite of HR features including leave & absence management, expenses, performance reviews, the ability to create an org chart, and more.

And, as of now, electronic document signing too. 

Find out all about it by booking in a short demo of PayFit by clicking the button below.