5 Benefits of Paperless HR Administration

Benefits of Paperless HR Administration
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Paperless administration is when the physical paper is minimal, and most operations involve the use of digital documents. Going for paperless processes has multiple benefits. The biggest of those is reducing the negative impact on the environment. Apart from the environmental benefits, paperless administration at the workplace is helpful to the business in many ways.
Going green is a new global trend, and regional companies are also adopting it quickly with changing attitudes and expectations of the customers. The moral responsibility towards sustainability is also an essential marketing tool. An HRMS software can be a great one to start with when it comes to moving towards the goal of making a paperless organisation. A cloud-based HRMS software helps store all the business-critical and employee data in digital form, making the information more accessible and secure for you. This method is also cost-effective and provides better efficiency.
The human resource department must do a lot of essential administrative work, nevertheless to say involving piles of paper files. Tackling these physical flies not just eats ups the physical space but significantly increases the processing time. That way, it ultimately contributes to bringing down productivity. Using the paperless method of administration is profitable to all types of organisations, irrespective of their size. Let us discuss the 5 Benefits of paperless HR administration in this blog.

1. Protects Environment

Environmental benefits are the prime factor when it comes to shifting to paperless administration. Paper production leads to deforestation, which causes global warming and climate change. The more paper is used, the more trees the earth loses. Making the HR administration paperless can reduce paper utilisation significantly at the company as the human resource department deals with various forms of paperwork. There are documents containing employees’ qualifications and experience related data.
The employee data keeps on increasing over the time they work for the company, in the form of performance or attendance records. Other administrative information and reports are also required to be developed and updated in the physical form regularly as the old information keeps becoming irrelevant to the business administration. A single call for recruitment attracts thousands of applications, and the hassle of maintaining their records can be avoided by going paperless.
Even with recycling efforts, much paper waste ends up in landfills. The paper itself is a degradable entity, but the chemicals used in processing and printing contain ingredients that harm both our soil and groundwater. When we investigate the entire lifecycle of paper, it involves the production of greenhouse gasses which further damages the environment. If you decide to make your company paperless, it also leads to less energy consumption in the printing and faxing of the document reducing the carbon footprint.
Today, customers prefer to purchase their products and services from companies that make conscious efforts to save the environment. This way, there are dual benefits to the paperless administration. Firstly, your organisation going green helps the environment. Secondly, it improves the brand image, which increases turnover and customer loyalty for your business.
Also Read: How HR can Improve Work Environment in Times of Crisis?

2. Space

Storing physical paper needs massive storage space. No matter what storage and organisation system you use, the data keeps increasing, and so does the necessary space requirement. The cost of this storage space can be utilised for more productive work in the organisation when you make your HR administration paperless. The digital space is relatively more affordable, accessible, and secure than the physical space and saves administrative efforts.

3. Easy Access to Information

Information has never been as vital as it is today. To stay ahead of the competition in the market and grow the organisation, you need to make data-backed informed decisions. However, having information can be useless if you cannot access it fast enough whenever required. As the business grows, the amount of business-critical data increases. It is not always possible to carry all the paper files with you, so the necessary information should always be accessible. The piles of paper files can make you feel like trying to find a needle in the haystack while you might be struggling with the time constraints.
Making your HR administration paperless is crucial. However, storing information at a data centre in an HRMS software can give your company various advantages, as described below.

Empowers HR

Having business-critical information empowers human resources to do some elemental analysis required for business strategy. This way, the HR department plays a significant role in critical decisions and can assist management with valuable insights with MIS reports. In addition, the HRMS software can create reports with crucial employee-related information with some clicks, which accelerates the process.


Most HRMS systems have an employee self-service portal. That makes employment-related information accessible to them in mobile applications. The staff can also upload necessary data to the HRM system. This way, your team feels empowered with the knowledge and saves HR time for strategic planning.


HR can share the reports and analytics with the concerned person at lightning speed. On the other hand, manually making a single comprehensive report with relevant information can take hours of work.

Remote Access

The cloud-based HRMS software allows access to information on the go. Those with the right credentials can view or edit the information while away from the company premises and avoid unnecessary travel.
Also Read: Top 7 Practices To Be Implemented In Remote Training

4. Low-Cost with High Efficiency

When it comes to making paperless HR administration with the right HRMS system, it saves a lot more than the cost of the paper. The other stationary expenses, including the cost of printing, ink, storage, and postal charges, are eliminated. It also saves time and resources through faster approval processes. The self-service feature also saves the data entry cost.
Additionally, we get the following benefits:

  • The organisation gets to experience improved accuracy as the human errors in the data entry work are eliminated.
  • The correct digital calculations also translate into reduced efforts and lesser costs in error correction.
  • Adopting paperless HR administration can reduce overall workforce costs for the company.
  • The workforce can find the information they are looking for with a few clicks. Previously, they might spend hours finding a single document to go ahead with their work. The automation streamlines most of the HR processes and gives you better efficiency.
  • The paperless HR administration also makes compliance easy. All the mandatory records can be safely saved and accessed. In addition, it helps avoid the penalties and legislative action due to missing data.


5. Storage and Security

Businesses must store and take care of a lot of sensitive data. Paperless data management with a trusted HRMS system is the key to an organisation’s storage and security challenges.
Online storage also helps improve the following facets:

Prevent Loss of Information

When you store a massive amount of information in physical paper documents, things can get challenging at times. Despite a company’s best efforts, some papers may slip the records, and even entire sets of files can go missing when a longer period is concerned. Moreover, as mentioned before, if you lose the mandatory information by the government authorities, it can attract some regulatory action. That is often expensive for the business. Therefore, a better solution is to prevent data loss by storing all the compliance-related information in digital form.

Have Regular Backups

The cloud HR software provides automated backups and ensures that you do not lose business-critical information. Paper documents are vulnerable to degradation over time, but when you store the information in digital forms, it stays intact in the condition you have kept it.

Better Security

We live in the digital era, and data theft is something businesses need to be careful about. Companies are responsible for keeping all their sensitive employee and client data safe from theft. An HRMS software with excellent cloud security keeps the data secure from physical theft and digital theft. In addition, HR can provide access to information according to the employees’ roles and notifies you about any unauthorised attempt to access critical data. This way, paperless administration improves data security at multiple levels.


Paperless HR administration has many benefits. Along with saving the cost of the paper itself, going green reduces other stationery expenses related to printing, storing, and transferring the information. The reduced use of paper also decreases soil, water, and air pollution and alleviates the negative impact of global warming. Paperless human resource processes speed up the administration. The information can be stored and transferred with ease. The company also saves storage, staffing, and productive time costs through quick and accurate processing. Going green positively impacts the environment as well as the brand image.

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