What is an HR document management system and why do you need one?

In this day and age, a business might just about survive on an archaic document management system, but it will certainly struggle to thrive in any sense of the word.

The modern competitive landscape is too fast-paced and changeable for businesses to keep up they you rely on manual processes. A more agile and efficient approach is needed if operations are to be as smooth as your morning coffee.

That’s where document management systems (DMS) come in—the ambitious business’s new best friend. A DMS is a modern cloud-based approach to document storage and distribution, offering safe and secure management of everything from employment contracts to timesheet records.

In this guide, you’ll discover everything you need to know about document management systems and how they can help you give your business efficiency the rocket boost it needs.

Does on-premises document management still work for modern businesses?

The traditional approach to HR and document management has been to store everything onsite or on-premises, primarily in a central, physical filing room or server system that relies on constant power sources and technical upkeep.

You’ll be all too aware of the issues this can cause when you’re a growing business—the server goes down and nobody can do anything except congregate around the kettle.

It might still work for businesses that aren’t aiming for rapid growth, but on-premises document storage simply doesn’t cut it in many 21st-century industries.

Not only is it an expensive way to run your business, from keeping up with software licenses to stepping in with people power when things go wrong, but it’s also an inefficient way to keep things going—your employees are held back by documentation that is difficult to access, edit and collaborate on between departments.

It’s time for the modernised approach you get from a cloud-based DMS—let’s find out more…

Why should you use a document management system?

If you’ve ever found yourself tearing your hair out trying to locate old documents, tracking down training expiry dates for your staff or chasing people to sign forms for you, a DMS is the solution you need.

Here are the main benefits that a new approach to HR document storage could bring to your business:

Streamlined document organisation

First of all, the headline benefit is that everything you do with documents will be streamlined and so much more efficient. A secure system and central storage location makes everything simpler, from uploading in bulk to keeping an archive that’s easy to access.

Enhanced security

On top of that, you get the boost every modern business needs in the age of cyber threats—enhanced security for all your company data and documentation.

A DMS gives you cloud-based storage, which means your documents are not only protected from power outages and server breakdowns, but they are also super easy to get to from anywhere.

Improved collaboration

The fact that your solution is cloud-based with a DMS means that you unlock the operational efficiency of better collaboration across your business. Every team can be empowered by easy document sharing, any time, any place, so there are no worries about working together or strategic planning.

Compliance and risk management

When running a business, you know the importance of compliance and governance, and a DMS will be your dream solution. You can use it to keep your team on top of all the employment documents you’re legally required to keep, including audit trails for things like health and safety training.

That way you can mitigate the risks that come with running a modern business—streamlining everything from recruitment to retirement.

How a document management system can work for you in HR

So, now we’ve looked at the why, let’s get a bit more specific with the how. With all the HR documents you need to create, maintain, and keep, here are some of the ways in which a DMS can help you with your day-to-day tasks and your business with its year-to-year growth:

Centralised electronic document storage

Gone are the days of digging around for the documents you need, whichever team you’re on. Centralised document storage means exactly what it says on the tin—all your documents stored in one place.

Everyone across the business knows where to look for the documents they need at any given time, so they’re not held up in their day-to-day work. The cloud-based storage aspect of a DMS means you can access and manage documents and rest easy in the knowledge that everyone else knows where they’ll be when they need them, too.

Search, organisation and retrieval capabilities

When everything is stored in one place, it’s easy for anyone to get to the documents they need, even if they are new to the business. Search and retrieval functionalities streamline the whole process and, over the course of, say, a year, can save your business a ton of time.

Document access control

Let’s say you are onboarding that new member of staff, and you only want them to access certain documents—there might be some sensitive business information you don’t want them to see during their probation period, for instance.

With a DMS, you can manage permissions to every document across the business, so only people with certain roles and responsibilities can access the top-secret stuff.

Document acceptance and signatures

Did you know that you don’t need to worry about waiting for physical signatures on documents now? A DMS brings the ability to manage documents online with legally binding acceptance, read receipts, timely alerts and notifications upon completion.

It’s the streamlined approach to getting things done you’ve always dreamed of.

Document to-do lists

A DMS can come with a dashboard that gives you the ability to see everything that needs action in one centralised location. You can use this to keep on top of your to-do lists with ease and chase people up who haven’t completed the documents you want, such as that training programme you need everyone to complete before the month is out.

Some systems like BrightHR’s come with built-in document to-do lists that auto updates and gives you alerts about important document due dates and deadlines, so you can take the right actions at the right time.

Unlimited storage and backup assurance

Of course, every document management solution needs to be equipped with the safety and security of storage, as well as the peace of mind that comes with knowing there’s a backup if things go awry. With a modern DMS, your business can enjoy unlimited storage without losing sleep over hitting limits and halting operations unexpectedly.

Nobody wants to slam the brakes on a business that’s in top gear now, do they? The ability to recover lost documents is an absolute must, too, given the pace at which market leaders need to operate.

How to choose an HR document storage solution for your business

It’s always helpful to compare document management systems to make sure you find the right one for your business. You might have a good idea of what you want from an HR perspective, but be sure to get other stakeholders together, too—their respective teams might have specific needs you haven’t considered yet.

Write down the specific needs you have as a business and prioritise them if you can. Collaborating on your DMS decision will also lead to better collaboration across your business because you know you’ve covered all the bases in the research process.

Ultimately, if you’re a business with great ambitions to grow and start crushing your competition, you’re going to want a DMS that will scale with you across all business areas. From delivery and document storage to compliance and regulation upkeep, the right DMS can do you wonders, so it’s not a decision you will want to take lightly.

Get unlimited HR document storage and streamlined management

Owners of small and medium businesses that have lofty ambitions clearly need a document management system that can scale with them. There’s nothing more frustrating than the infrastructure around you being the thing that holds you back, so it could be time to look at embracing a DMS proactively rather than reactively when it’s too late.

As a modern business on the rise, you can leverage all the features and benefits of BrightHR to give your teams a more efficient way to work collaboratively and your HR arm a more robust set of tools for compliance, governance and, ultimately, business growth.

Get in touch today to book a demo and discover the wonders of a modern approach to HR document storage and business operations.