Andrew Roberts

HR has a tough job. So much paperwork is created in the department that it can be a real challenge to tame it. Worse yet, Human Resources is one section of business that gets audited constantly. This puts an incredible amount of pressure on HR staff. After all, they are responsible for keeping all employee documentation complete, up to date and compliant with federal regulations. Here’s how to be prepared for an HR audit. 

Slay The Paper Demon

One of the best things you can do for your HR staff is go paperless. The benefits of switching to electronic employee files are just too numerous to list here. The easiest way to take your Human Resources department paperless is to go with a scan-to-cloud solution. These are the Frankensteins of document management solutions – a hybrid system that handles both paper and electronic files. They are basically cloud filing systems that include scanning automation tools to help you digitize your paper files quickly and easily.

When evaluating different vendors, make sure you also go with an indexed filing system. An indexed system categorizes your documents and then files them in the correct location automatically. This makes converting, filing and retrieving documents a breeze – and sets you up for easy HR audit preparation.

Managing Employee Files: No Longer A Monster Of A Job

When filing away a document in an indexed system, you are usually prompted to choose the Document Type. This is simply the kind of document you’re adding to the system, like a Performance Review, W-4 Form, PTO Request, etc. Since Document Type is almost always used as a main identifier for your documents, certain controls can be created on a Document Type basis. For example, you can control access to specific types of documents for specific groups of users.

Often times Payroll needs to access specific types of documents in an employee file, but giving them access to the whole folder would not be considered compliant. Simply create a group for your Payroll staff in the system and give them access to only the Document Types that they need. This allows you to combine the 3 – 5 folders you typically see for each and every employee into one single folder per employee. Simply use Document Type control to limit access to specific sections of employee files like protected health information (PHI).

Keep Tabs On Ghost Files

You can also utilize Document Types to run reports in the system. Many times when Human Resources departments get audited, the auditor will notify you and request, say, a dozen employee files at random. They check these employee files to ensure that all required documentation is included and that all information is up to date. To ensure that your department is ready for when this happens, a simple exception report can be created to track this information automatically.

For example, you may have a business rule that requires every employee to have documents A, B and C in their folder at all times. And, maybe document C happens to be a certification that needs to be renewed annually. You can create a report for that business rule that will track those specific Document Types as well as an expiration date tied to certifications. This report can be emailed to you on a weekly or monthly basis letting you know which employees are missing which documents from their folder and which employees have a certification that needs to be renewed soon. In this way, your department runs their own internal audits automatically so you always know you’re safe in the event of an HR audit.

Learn More

If you would like to learn more about taking your Human Resources department paperless, contact us today. DynaFile is a scan-to-cloud filing solution that has been helping HR operate more efficiently for over 15 years. Scanning automation tools let you take your existing files paperless fast, then easily manage them from the cloud. Our system is completely indexed, allowing for instant document retrieval and automatic exception reports. You can even give your auditor access to specific employee folders within DynaFile or a subset of information within those folders; eliminating the need for printing, copying, faxing and over-nighting all together.

Managing employee files can be a real challenge. Many HRIS do not offer a practical solution for employee file management. This forces a lot of companies to continue storing their employee files in paper format. Paper files can cause problems for a Human Resources department. Documentation is easily misfiled, lost or just plain inaccessible. For this reason, many companies are looking towards digital options for storing and managing employee files. A cloud employee file system can help HR keep employee files secure, organized and accessible.

Get secure, instant access to employee files.
One of the nicest things about a cloud employee file system is that it provides secure access from anywhere, at anytime. When evaluating different solutions, be sure to go with an indexed filing system. These allow you to manage your files much easier. Instead of creating hundreds of folders, finding the right place to save a document and then hoping you used the correct naming convention; indexed filing systems categorize your documents with different index fields. The system then uses the information from those fields to file your documents away in the correct location automatically. When you need to retrieve a document, a simple index search brings back exactly what you’re looking for instantly.

Consolidate without sacrificing compliance.
With all of the regulations around managing employee files, a paper filing system just doesn’t cut it anymore. To maintain compliance, multiple folders need to be on file for each and every employee, making finding a particular piece of documentation a serious chore. With an indexed system, you can actually consolidate information into one comprehensive folder per employee. Access permissions can be set to control access for specific types of documentation, like protected health information (PHI). HR admins can specify exactly which employee can view what kinds of documents in the system. This can be done on an individual basis or for a group of users, like your Payroll or Accounting department, for example. 

Audit preparation can be nearly automatic.
If your organization is audited regularly, you may need a full time employee just to ensure all files are complete and up to date. With an indexed filing system, a simple report can be created to ensure all employee documentation is present and up to date. For example, lets say your compliancy rule around employee documentation states that all employees need to have documents A, B and C in their files at all times; and that document C is a certification that has to be renewed annually. You can create a report that can be run manually, or automatically on a weekly or monthly basis, that will tell you exactly which employees are missing which documents from their folder and which employees have certifications that are expiring within the next 60 days. In this fashion, being prepared for an audit becomes almost automatic.

Take employee onboarding completely paperless.
If your business is rapidly expanding, has high turnover rate or has many offices spread throughout the country, employee onboarding can be a very tedious task. Every time a new employee is hired, there is a mountain of paperwork that needs to be completed and signed. When employees are spread throughout the country, this can cause big problems. You need to ensure that their onboarding documentation is filled out completely, that HR receives their onboarding packet back in a timely matter, and that Payroll and other departments are able to get the information they need for getting the new employee set up properly.

Pen and paper make this a grueling process. However, with electronic onboarding, new hires can complete and legally sign all of their onboarding paperwork online before their first day on the job. HR can also include required fields and validation on forms to ensure that all information is collected accurately and that all documentation is filled out completely. Once the new hire is finished, onboarding packets can be routed back to HR, out to Payroll, or wherever they need to go, before being sent back to the cloud employee file system. This streamlines the whole process and reduces frustration for all parties.

Learn more about moving your employee files to the cloud.
DynaFile is a scan to cloud filing system that specializes in helping Human Resource departments operate more efficiently. Our cloud employee file system also includes scanning automation tools so you can take the entire department paperless quickly and easily. From there, you can manage all of your employee files from anywhere, at any time. DynaFile is a completely indexed system allowing for instantly retrieval, simple consolidation and easy audits. Our integration with DocuSing also allows for a completely paperless employee onboarding process. Contact us today for a free demo!