Managing files is a tricky part of any business. It typically involves a lot of shuffling through filing cabinets, a few paper cuts and sometimes a little bit of pulling your hair out. The root of all evil here is the very thing you are trying to manage: paper. The funny part is that nowadays, there is no reason to keep working with paper. With modern electronic filing systems and advanced scanning automation techniques, businesses can now go paperless faster than they ever thought before. Let's take a look at some of the numbers to see if switching to electronic employee files can help your team.
7.5% of files are lost.
According to PricewaterhouseCoopers, finding a lost document will cost a company $122 on average. It is also estimated that 7.5% of all company documents are lost completely. Let’s assume your company employs 1,000 staff and that each personnel folder is roughly 100 pages thick. That tasks HR alone with managing 10,000 documents. That would mean, about 750 of those documents are doomed to be lost, ultimately costing your company around $91,500. Plus, if you had to recreate any lost documents, the time and supplies involved would make that number jump well over the $100,000 mark.
It costs $25,000 to fill one file cabinet.
One three drawer filing cabinet can cost around $300, hold 9,000 pages of documents and require about 20 sq. ft. of office space. As retention periods are becoming longer and paper documents continue to influx daily, many businesses have hard time maintaining that storage area. Additionally, PricewaterhouseCoopers reports that on average, a company spends $25,000 to fill one file cabinet and an additional $2,100 a year to maintain that cabinet. The fees quickly add up.
Searching for documents takes 20% of an employee's time.
The costs associated with finding and retrieving documents may seem invisible, but managing paper files is an everyday cost to businesses. It has been estimated that searching for documents takes about 20% of an employee’s time. Let’s say you have 10 employees, all with access to search and retrieve documents. At 20%, the accumulative time spent finding documents is equal to 2 full-time employees. Let's say you pay $40K in annual salaries per HR employee, that’s $80,000 every year in productivity lost by using a paper based filing system.
The cost required to maintain a paper filing system can often be easily overlooked. However, when you sit down and really look at the resources spent on managing paper, you can quickly see how expensive it really is. DynaFile is a employee file management solution that makes going paperless quick and easy. Scanning automation tools convert your existing paper files fast, cloud document management gives your team secure access from anywhere and electronic onboarding lets you stop producing paper from the very start. If you would like to learn more, give us a call today or request a free demo!