Why move to use electronic employee files? Most often, it’s to save HR costs. Here are some numbers that are commonly used as proof of ROI. Note: the costs listed below relate to ongoing operations within larger companies with an average of 4,000 employees:
- Costs for non-digitized employee file management: 90 cents per file, including archives and audit-compliant operations
- Costs for digitized employee file management: 20 cents per file for ongoing digitalization
It clearly makes financial sense, but cost-reduction is not the only reason to go digital: it also saves time and reduces HR workloads. Not only can employee files be managed and updated very efficiently – employees can even update records themselves! This, in turn, allows you to give your qualified employees more time to do other important, but often neglected, areas of HR work.
In addition, once your employee files are stored in an electronic format, the information you need can be found more quickly and processed in a matter of minutes. That’s quite different to dealing with paper files which typically take at least 20 minutes per process (or often much longer).
And don’t forget that once digitization is in place, there is no longer a need to for expensive archiving space. It is also easy to manage document retention periods (software like Personio actually reminds you when it is time to delete content).
If you want to know how much you could save in total – in both hard and soft costs – get in touch. Our digital employee files software solutions expert will be happy to create a detailed calculation specifically for your size of company.