Dealing with employees and managing them effectively is a crucial function of HR professionals. They have to take care of a myriad of problems and tasks, including leaves, recruitment, payroll, tracking, attendance, queries, benefits administration, and whatnot. Of course, with a huge amount of work, comes a huge pile of paperwork to be finished daily. You can see HR departments maintaining various spreadsheets and files to keep records and data safe. Let’s be honest, managing papers and sheets manually is a complex and daunting task that consumes hours and even weeks. According to several surveys done by IDC, McKinsey, and other renowned organizations, it is revealed that most of the valuable amount of time of HR teams spend in handling paperwork and dealing with data. Also, they are not able to focus on core tasks and productive activities due to this.

In this digital era, technology has a greater influence on every business than any other resource. It has a massive impact on every aspect of modern-day business and HR document management software is one such powerful tool that is making lives easier and hassle-free for human resource teams. It is an integral part of the HRIS system that helps in the successful management of documents all the while ensuring to protect sensitive data, enhance administrative efficiency, and mitigate risks. We all know that paper-based work culture is expensive, time-consuming, and far from any security. However, a proper and organized document management system not only automates and streamlines most of the processes of HR departments but also empowers businesses and drives better decision making.

Yes, we know that most of you think that the transition from paper-based workflow to centralized software will be difficult. However, getting familiar with the basic features and benefits that you can avail from the change will make it smoother and worth the investment. So, here is a blog that explains a document management system, its features, and benefits in detail:

What Is HR Document Management System?

In simple terms, an HR document management system is a tool that enables HR professionals to record and store the information of employees on an electronic document. Of course, as the name suggests, this is the most basic function of DMS and those that are designed keeping specific functionalities in mind may vary in features. Through this one-stop solution, HR professionals can keep track of employees and their data in an organized manner. Also, they can file, retain, update, or destroy any data while ensuring compliance. What’s more? It allows you to assign an expiry date and time to documents along with role-based security, thereby managing the documents effectively and compliantly. 

As mentioned earlier, DMS comes with different features and functionalities based on business requirements and objectives. Some are stand-alone which means that the platform is designed with the sole purpose of helping users to manage their files and documents. While others are more robust and scalable that comprise various business-related tools, such as wikis, calendars, messaging, case tracking, and more. This software is also known as social intranet software or business software or collaboration tool that are best for companies that are searching for a unified platform for handling daily operations. 

Must-Have Features of an Efficient DMS

Not all document management software solutions are created the same. They can have different features and designs to suit the needs of different businesses. However, there are a few basic and essential features that every DMS must have, and below, we have listed the top 6 of them:

Regulatory Compliance

Whenever an organization uses or implements software, the primary focus is to remain compliant. Any ignorance or error in adhering to government regulations or rules may result in costly penalties or fines. Moreover, it can harm the brand’s reputation and lead to other serious consequences. Yes, complying with so many complex government and corporate policies can be daunting and stressful for HR professionals. However, a trusted HRIS software solution can make sure that they follow all rules and maintain compliance. 

When you use a DMS in your company, check the following points to avoid any risk or non-compliance penalties:

  • Does it contain all the required details and update information timely?
  • Are documents retained according to the government and corporate rules?
  • Does it keep the documents up to date automatically?
  • Is it proactive and addresses issues before it gets serious?

Ask yourself these questions, and make sure you get ‘Yes’ as an answer always. 

Intelligent Organization

We all know that there are a lot of documents to manage and juggle in every business. HR teams are often consumed in handling paperwork that they hardly find any time to focus on other productive tasks. If even DMS is unable to deal with the pile of paperwork, then it is of no use. All your time and penny invested to acquire that software will be in vain. If you are a growing company, then there will be more and more documents to deal with in the future and you must be sure that the document management system can take care of it smoothly. 

Also, another important consideration when choosing the right DMS is an organizational hierarchy. It must be able to categorize, rate, tag, organize, find, and sort documents as quickly as possible. Basically, you are looking for software that can work smarter than humans and give improved results efficiently.

Cloud Access

We are living in a digital world where everything is taking place online. Every business is taking their processes and workflow on the cloud and making it centralized. The HR department is no exception to it. In fact, it is one of the key areas that must have cloud access to keep data secure and streamlined. 

HR document management systems with cloud access will enable employees and HR managers to upload and download their documents on the software anytime and anywhere. All they need is quick access to the system. Yes, web-based systems are also gaining popularity among businesses and employers but there are many that lack web integration features and they must be avoided. 

Paper & Digital

Although we are talking about paperless workflow and HR processes, we cannot ignore paper completely. Yes, the use of paperwork has decreased significantly in businesses, but it is still an important factor for companies and cannot be replaced fully. According to a survey of HR professionals, 73% said that they still rely on paper to manage their daily tasks and important documents. Also, over 80% of them believed that paper-based workflow is here to stay and will be needed for at least the next decade or so.

Therefore, your document management software must combine both paper and digital in a  balanced and efficient way. It must be a platform where both of them coexist and when required, technology can easily and conveniently replace documents that started off as paper. Also, adding documents to digital ones must be inexpensive, quick, and user-friendly. It should follow easy steps where you only have to add paper or digital docs by uploading, emailing, or secure FTP. 

Also Read: How Does HCM Technology Overcome HR Compliance Challenges?


Whether you are launching a new software or revamping the existing one, smooth integration is a must to avoid downtime or disruptions. The same holds true for HCM solutions as well. So, when you buy document management software, double-check that it can be easily integrated with your processes or systems. Also, it must be compatible with your existing software. With automated integration of employee records, you can be assured that the system has all the important information that is also available in your manual HCM technology. As a comprehensive DMS, it must also manage digital documents during onboarding and applicant tracking solutions. 

This will provide you with a secure central repository so while searching for any information or data, you only have to look at one platform that maintains all the records. This complete integration will be a key element in helping you achieve a 360-degree view of your employee’s history in your organization. 


We need not emphasize the importance of security and protection of employee information. The HR documents contain some of the most confidential and personal details about the staff members and securing the information is a liability and responsibility of every organization. Therefore, your system must be free from any theft or vulnerabilities that may cause infringements. The technology must be able to encrypt data in transit and at rest. The vendor or software provider that you choose must go through a stringent annual audit by 3rd party. Also, security is more than simply protecting data. It also includes limiting and controlling access to documents. The system must allow only selected or authorized people to access selected data. Moreover, it must allow you to control what people can see and do with a document.

Another essential feature that must be included in the technology is that documents must be shared with a secure link that expires after a certain period. There is also an option of a safe review room so that you can place docs in a digital place and grant temporary access to selected employees. This is a recommended way to let auditors and attorneys review documents when needed. 

Benefits of an HR Document Management System 

The benefits that you can reap by using DMS solutions are highly impressive than you can imagine. The sooner you make the transition, the better it will be for your organization. Here are significant advantages of a document management system:

Legal Protection

In any organization, maintaining compliance and following all the government regulations are critical. Any ignorance by employers or HR managers can result in hefty fines and penalties. Moreover, it can damage a company’s reputation and overall brand image. With an end-to-end HR document management solution, you can address this problem efficiently. You can access employee documents instantly to answer all the regulatory audit questions and inquiries, lawsuits, and complaints. Let’s say, a worker files a complaint regarding discrimination and biased increments, you can quickly show compensation data, performance appraisal report, attendance records, hiring docs, etc. 

Furthermore, if this investigation grows further, you can provide the documents and data that cover all the employees and their details. As these requests and inquiries are time-sensitive, you can extract the required information within a few seconds. With document management policy, you can produce the full HR records promptly. Also, several federal laws ask employers to store employee records, so DMS helps you meet these requirements. 

Save Cost & Time

Establishing and running a successful business is not a cakewalk. Entrepreneurs and startup owners have to put in all their efforts and hard work to keep pace with others in this competitive era while keeping the costs low. One of the most effective and easiest ways to attain this is to stop relying on papers and start using an automated system that streamlines the whole process. Buying paper in bulk can cost a fortune and then doing most of the work manually, such as creating spreadsheets, maintaining files, etc., are prone to costly errors. So, DMS is one beneficial way to reduce this cost significantly while handling all the tasks more seamlessly. 

Also, it makes things instant and quick in this professional climate where every second is valuable. You no more have to deal with a pile of files to find every detail. Just a few clicks on your desktop, and you can access the required information within no time. 

Strict Security

Employers are legally and ethically required to protect sensitive information of employees, such as their medical records, social security numbers, information on disabilities, payroll and salary information, and other personal details. We offer you a completely secure and safe HR software solution that manages documents and records while keeping them protected from any theft or unauthorized access. It follows several security protocols to meet your specific safety requirements, including lacking physical files, securing computers & IT equipment when not in use, using passwords and encryption to protect electronic data, and more. 

Whether the documents are moving in and out of the organization or used by anyone temporarily, rest assured that DMS won’t compromise on the security at any time. The transformation from manual to automated system will improve data protection and keep the original files always intact. 

Reduced Manual Work

Of course, in this digital and modern world, no company wants to continue with manual processes. They are switching to electronic and smart systems that can perform their tasks faster and more accurately. Document management software is one such example that has converted daunting tasks that involved manual labor into centralized and smart systems. Now, HR professionals don’t have to spend hours sorting out files and records, searching for information, and filling spreadsheets. 

They just have to enter a few details on this one-stop solution, and everything else will be handled automatically. This will reduce errors, miscommunication, and omissions. Also, team members can give time to other pressing matters in the company. 

Also Read: How To Replenish Your Virtual On-boarding In 2021

Administrative Efficiency

Hitherto, we have talked about how adverse it is to go through a mountain of paperwork. However, worse than this is to repeat this work again and again for weeks. But with DMS to assist them at every step, HR managers don’t have to hunt for the same documents time and again or recreate lost data. It will store all the information safely as long as they need, ensuring efficiency and organized HR administration. 


A comprehensive and powerful Document Management System offers way more than just saving your administrative costs, time, and efforts. It gives you more control and empowers you throughout your journey. Whether you face a legal challenge or need instant information, it provides you with the evidence at your fingertips for a prompt response. 

We have listed major features and benefits of DMS but to make the best out of it, you must implement a well-designed software that impacts every aspect of your business. To know more about DMS and its features, connect with the team of Accomplish, a trusted and authentic HR solution. 


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