3 Reasons Why Document Management Software is Integral to HR

Human Resources (HR), a multi-billion dollar industry, handles all employee-related processes that include screening, recruiting, management, and administration of employee records. As a department, Human Resources manages a variety of paperwork, from on-boarding documents to employee benefit files, and even termination records. According to LinkedIn, managing HR paperwork costs an average $300 per employee annually. For an organization of just 100 employees, this equates to a $30,000 recurring cost. This is in addition to the aggravation of inefficient manual processing from repetitive data entry on multiple forms, to staying on top of performance reviews, and upholding HIPAA compliance.


Document management software enables HR departments to take better care of people and policies without the heavy burden of paper. By digitizing HR processes, document management software delivers a range of benefits including heightened efficiency and cost savings. Let’s explore some common HR challenges that can be resolved – and the processes that can be improved – with document management software.



  • Too much HR paperwork can be difficult to manage
  • Time-consuming manual processes, including repetitive data entry
  • Bulky files cause high storage costs and inefficient document retrieval


Designed to automate manual paper-based tasks, document management solutions allow organizations to go paperless, improving productivity and visibility into documentation. This in return, enables HR staff to become more knowledgeable on the status of employee documentation. Leveraging the power of automation, document management software eliminates time-consuming data entry and workflow processes so staff can focus on value-adding HR activities. This leads to smarter decision-making and accurate scheduling.

With document management, your HR team can get more done in less time with less resources. Through advanced capture technologies, document management software improves document creation, storage, and retrieval, saving valuable time of your HR team. By digitally storing employee documentation and automatically repopulating captured data onto multiple forms, document management software delivers innovative capture automation to boost your HR document efficiencies.



  • There is no standard onboarding or employee exit processes in place
  • Records are subject to frequent changes
  • Post-hire activities need to be scheduled and documented


Over time, the process of screening and onboarding new hires has become increasingly more rigid and in depth. Employment applications, for instance, have gone from two to seven pages in length, with waivers that need to be signed for drug screenings and background checks. Document management software enables HR staff to enforce a standard onboarding process. HR automation solutions also streamline collaboration as applications are digitally pushed to interviewers and the HR employees responsible for processing W-4s and I-9s. With a process in place, organizations can then save time and money by onboarding employees fast and efficiently.

Document management software also reduces document build-up by eliminating paper-based employee files. Web-based applications and employment forms makes the screening process convenient and easily accessible, even when hiring managers are out of office. In addition, once an employee is hired, advanced search capabilities provide immediate access to documents so that you can ensure record changes, like change of address or insurance updates, are applied as soon as they are received. Users will receive automatic email notifications of post-hire activities including benefits enrollment and performance reviews. Plus, staff can effortlessly repurpose captured employee data into existing HR business applications through intuitive document management integration.



  • Health insurance information is bound by HIPAA
  • Potential fines for not producing the appropriate documentation
  • Employee records have a variety of retention schedules


Many HR professionals complain that the paperwork required to justify costs and satisfy government regulations takes up a huge chunk of their time. Regardless of industry or company size, HR staff are very likely to experience fines if paperwork is filed improperly. For example, misfiling an I-9 form can lead to a fine ranging from $375 to $16,000 per violation. However, your organization can avoid costly compliance penalties and risks with document management software. To ensure HIPAA compliance, documents are securely stored behind user-based permissions, and the software offers a well-organized folder structure to ensure no documents go misfiled.

In addition, users can streamline standard practices like contract approval by incorporating digital signature applications in the document process. This helps with the overall management of documents from performance reviews to disciplinary action and employee termination. In fact, when an employee leaves an organization, retention of I-9 forms are required for a period of at least 3 years from the date of hire, or for one year after the employee is no longer employed. With HR automation solutions, users can set retention dates based off when a record was captured into the system, for worry-free document management. Plus, staff will receive automation notifications when an employee’s forms are ready to be discarded.

Recent trends indicate that companies who have implemented software to manage HR processes have outperformed their competitors. You too can improve HR processing with reliable scanning and document management software. By digitally scanning, storing, and repopulating employee documentation, along with automatic notification of post-hire activities, automation solutions boost your HR staff to become more knowledgeable, more efficient, and more productive. Are you ready to get started? Contact Square 9 today!

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