Human Resource Software
Published September 14th, 2016 by

DMS: HR Directors’ Cost-Effective Alternative to HRIS and HRMS

Human Resources is an occupationally diverse field, and given that Human Resources professionals are concerned with excellent communication and employees’ performance, DMS becomes relevant to the Human Resources landscape—especially as the complexity of information increases and HR managers become increasingly responsible for streamlining processes for the organizations in which they work.

Human Resources technology is now in high demand for IT departments in 2016, and this trend will only increase as the complexity of workplace policies climbs with an increasingly diverse workforce, increased gender equality, and increasingly blurred lines between what constitutes “right” and “wrong” in the information landscape.

However, many human resources professionals are relying on complex and highly expensive HRIS (Human Resources Information Systems) and HRMS (Human Resources Management Software/Systems) to simplify these challenges when document management software is a better (and more cost-effective) alternative—costing as much as $200,000 dollars less per year than the typical HRMS/HRIS.

In contrast to HRIS and HRMS, eFileCabinet lets HR Directors use document management software on subscription terms for as little as $50 per month—ensuring that members of HR departments can renew services on experience rather than buy products on hope.

Additionally, many people don’t know that document management software is not cloud storage. Cloud storage only comprises roughly 15% of DMS’s power. Rather, DMS offers enhanced collaboration and workflow features, including the following beneficial features for HR Directors, which HRIS and HRMS commonly fail to offer:

Role-based User Permissions

Privacy of employee information is crucial in helping HR professionals maintain their role as trusted confidantes within the office space. DMS uses this feature to ensure that only certain users are allowed to use certain files. These settings can easily be changed, enabling HR directors to administrate the viewing of documents within an organization efficiently, compliantly, and easily.

Built-in Security to Simplify Compliance

DMS solves the problems associated with traditional, paper-based filing methods that are untenable if the HR profession wants to continue as the preeminent resource to the organizational process—especially if an organization is growing rapidly, and this is because of security and compliance demands.

The best DMS vendors will have HIPAA, SEC, and FINRA-compliant security features built-in to their software and client sharing portal features. Human Resources specialists and managers know that personnel files are as lengthy as they are plentiful, even for small to mid-sized businesses. Additionally, perhaps the most vital aspect of DMS technology, at least from the Human Resources perspective, is the increased privacy and security of personnel files that going paperless via DMS provides.

Automated Retention and Deletion

The moment an employee applies for a job at an organization, the employee’s file begins and grows exponentially throughout their tenure, and most HR managers and directors know they are obligated to keep the file for at least 7 years after employees are terminated, which is a long time-span to keep a document from normal wear and tear in a traditional filing cabinet.

Additionally, relying on filing cabinets to store personnel files will result in a greater amount of clutter over the years, since physical filing cabinets do not have automatic deletion features: without DMS, HR professionals must manually sift through information they no longer need and consign it to the waste bin—which is, pun intended, a huge waste of time.

The Human Resources professional is also concerned with how to best facilitate speed, accountability, and safe retention of important files with information such as non-compete agreements, employee handbooks, applications, recruiting information, benefits elections, insurance information, workers’ compensation documents, performance reviews, payroll deductions, and I-9 forms.

clutter-reducing document retention functions, and accountability-bolstering workflow features inherent to most document management vendors’ products. Darrell Mooney of Reliance Aerotech Services, Inc., describes how DMS has positively impacted his role as a Program Manager:

“Not only was space a concern, but document retrieval was also. As the Program Manager, I’ve seen a large decrease in the amount of time it takes to store and retrieve required documents since using eFileCabinet. I would guess I save an hour or more during the day by not having to visit the file room and manually search for documents. The time HR spends to conduct employment verifications are cut in half, allowing the department to focus on more pressing issues.”

Audit Trails

As with all other departments, Human Resources greatly benefits from the organizational and time-saving capabilities of a DMS system, and audit trails save time in the event of an external audit, and make sure there are no question marks regarding the compliance and retention of employees’ information.

A Concluding Note

Many Human Resources managers and specialists, to the downfall of the companies they work for, are oftentimes not included in discussions regarding organizational growth; this is an unfavorable phenomenon given how growth will impact many facets of the organization that HR professionals are usually responsible for overseeing, such as records management and training. However, document management software enables HR professionals to eliminate this gap and partake in important organizational conversations.

Executives and organizational leaders should include HR professionals in discussing growth initiatives, for different forms of technology like DMS are redefining the administrative component of HR—arguably turning it into a strategy-centric occupation. Therefore, HR managers will be integral to helping organizations obtain growth amid DMS use.

Otherwise, the present consensus regarding the Human Resources industry will remain, this consensus noting how many HR managers and specialists are not adapting quickly enough to the strategic challenges that organizational growth imposes, irrespective of industry. HR managers and specialists who recognize the importance of, and thereby develop arguments for implementing DMS, can solidify the value of the Human Resources professional’s toolkit, helping organizational leaders understand how this technology can tame the challenges of organizational growth.

Our rankings are completely independent, transparent, and community driven; they are based on user reviews and client sentiment. These human resource software companies had to earn their way up and didn't just pay their way up.

View Rankings of Best Human Resource Software Companies