Digital Employee File – 7 Reasons to Go Digital
According to a McKinsey study, employees spend an average of 1.8 hours each day searching for and gathering information—time that could be used far more productively with a digital employee file system.
Let’s explore 7 reasons to digitize your employees’ personnel files:
Dramatic Cost Reduction
Statistics speak for themselves: the average office worker uses 10,000 sheets of paper per year, 68% of which end up in the trash. According to PricewaterhouseCoopers, companies spend an average of €20 in labor to file each document and €120 to locate each misfiled document.
For a company with 100 employees, that amounts to approximately €80,000 per year on paper alone. Add storage costs—on average €25,000 to fill a four-drawer filing cabinet and €2,000 per year to maintain it—and digitization becomes an economic imperative.
An electronic personnel file costs 141 times less than physical storage, making digital personnel file solutions extremely profitable for any organization. To illustrate the savings that an electronic file system can deliver, we’ve created an ROI calculator for digital personnel files.
Weeks of Increased Productivity
HR platforms save up to 10 hours of HR team time per week that was previously spent searching for information. The onboarding process for new hires is cut in half—from 8 hours to 4 hours per employee.
For an organization with 30 new hires per year, that translates to 120 hours of saved work time simply by optimizing the onboarding process.
Unprecedented Level of Security
While paper records are vulnerable to theft, fire, or flooding, the electronic employment record delivers multi-layered protection via:
- Two-factor authentication for access
- Data encryption to the highest standards
- Automated backups in secure cloud environments
- Audit trails logging every access with a complete change history
Studies show that digital HR solutions reduce HR hotline calls by 33% and cut issue-resolution time by 75%.
24/7 Anywhere Access
Modern business demands flexibility. With digital personnel files, authorized users can retrieve necessary documents at any time, from any location. This is critical in hybrid work environments, where 98% of employees desire remote-work options.
A digital employee file enables staff to:
- Submit leave requests
- View their employment contracts
- Update personal information
- Receive important notifications
Automation of Routine Tasks
HR automation can reduce administrative costs by 30% for HR professionals and 49% for employers. Electronic personnel file systems automate:
- Expiring contract and document reminders
- Report and data generation in seconds instead of hours
- Electronic signature workflows for documents
- Synchronization with other corporate systems
Regulatory Compliance
With the introduction of the electronic employment record on June 1, 2025, digital personnel files become not only an advantage but a necessity for legal compliance. These systems automatically enforce retention schedules for all document types, ensuring you always meet regulatory requirements.
Environmental Responsibility & Corporate Image
In a world where corporate environmental responsibility is increasingly important, switching to digital personnel files demonstrates a commitment to sustainability. The paper industry accounts for over 7% of global emissions—more than aviation. Eliminating paper processes:
- Reduces your organization’s carbon footprint
- Saves thousands of trees annually for larger companies
- Enhances your corporate image with clients and partners
- Attracts younger talent who value sustainability
Conclusion
The Time to Act Is Now
With the global HR technology market expected to reach $81.84 billion by 2032, and 80% of Forbes Global 2000 companies planning to use algorithmic managers, HR digitalization is not a matter of “if” but “when.”
Organizations adopting electronic personnel file solutions today gain competitive advantages through:
Significant cost savings from reduced operational expenses
Increased HR team productivity
Higher employee satisfaction via digital self-service
Guaranteed regulatory compliance
Don’t let competitors get ahead. Your investment in electronic personnel files pays dividends through saved hours, fewer errors, and streamlined processes.
For more information on how digital personnel files can transform your business, contact the experts at nZoom today.
Sources:
SelectSoftwareReviews HR Statistics 2025
OneSpan HR Digital Transformation Trends 2025
E-Arc Paper-Based Work Environment Cost Analysis
LinkedIn Paper Cost Reduction in HR
MES Digital vs Paper Records Comparison
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