Study Shows Adopting a Human Resource Management System Increases Productivity and Efficiency


Study Shows Adopting a Human Resource Management System Increases Productivity and Efficiency

“Going paperless” has been a popular buzz phrase in recent years. However, it’s not about keeping up with the latest trend or having the latest technology. Implementing a Human Resource Management System (HRMS) is about an overall management strategy that is saving money, increasing efficiency and boosting productivity. A new study is proving it with hard evidence.

77 Percent of HR Firms Using a HRMS

Research data was collected through a survey of 150 HR professionals that attended the Society for Human Resource Management (SHRM) 2015 Annual Conference this summer. Seventy-seven percent of respondents said they were completely or partially paperless and doing it successfully. Only 23 percent of those surveyed are relying on paper files alone. What benefits are they reaping? Here’s what they said.

Saving time and money. Respondents that are only 50 percent digital are already spending 35 percent less time on paperwork. Companies also save money on costs associated with the storage and security of employee files. Calculations from Entrepreneur magazine say one four-drawer file cabinet represents “15,000 to 20,000 pages, costs $25,000 to fill and $2,000 to maintain each year.”
Empowering others. “I used to field queries from our providers, our accountants, tax attorney and employees alike on a regular basis,” said Anup Chathoth of Ubi Interactive Inc. in Seattle, Wash. “Now, I can just give them access to the right tool and they can see all the information for themselves. We can do that only because we are paperless.” Empowering others to find information themselves saves your time and theirs.
Think strategically. HR managers that still use only paper records said much of their time is spent on mundane matters instead of business strategy and important initiatives. Better housing of data also leads to better reporting and analysis, which results in better strategic planning.
Confidently compliant. Companies that have completely converted to a paperless system are 70 percent confident they can quickly access important documents for audits and other compliance issues. Conversely, HR managers still using paper records are only 50 percent confident they can do the same. Compliance is much harder to prove when files are resting in a file cabinet. Using electronic files also makes it easier to identify compliance issues among employees, ensuring the right training course has been completed, time sheets were accurate , purchasing requests were performed correctly and policies were signed.
Protect the environment. Using digital files greatly reduces a company’s carbon footprint.
Secure storage. One of the biggest concerns in the HR industry is security. Digital files must be protected against cyberattacks, as well as fire and natural disasters. However, respondents said IT departments are more than qualified to monitor systems, test security and perform audits since they are most likely already doing it for systems that house patient or customer information.
Choosing the Right HRMS

Respondents did mentioned one main hurdle, selecting the right HRMS. What were their biggest issues? Many that have gone paperless now find themselves with digital documents that exist in multiple systems instead of one central company-wide digital location. However, this hurdle is easily overcome by selecting the right HRMS, one that takes care of payroll, human resources, benefits, applicant tracking and performance management, all in one location. Security is also still a main concern for those considering going digital. However, choosing the right HRMS also solves this dilemma. Select technology that offers a client portal and secure file transfer. If files must be sent via email, encrypted protocols will keep them secure and ensure you are in compliance. A web portal allows clients secure access to their own files, alleviating the security risk of email and saving on mailing costs.

Surmount Human Resource management offers easy-to-use, cost-effective HRMS technology. Our professionals specialize in helping you get all your data in one place. Contact us to learn more.


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