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Digital Personnel File: Enhance Your Human Resource Management.

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Personnel management software

An efficient and modern solution for personnel management, such as digital personnel files, is crucial for optimizing work processes in companies. Digital systems facilitate the management of employee data, minimize administrative effort and at the same time promote transparency and satisfaction within the team. Find out more ↓HERE.

Topic overview

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What is personnel management about?

HR management in companies is a wide-ranging area of responsibility – all aspects that affect employees belong in this HR area: recruiting new employees is a fundamental task, but payroll accounting, personnel administration, controlling and personnel development are also tasks of those responsible for personnel management in the HR department.

There is no question that this is a cross-departmental activity that also requires cooperation with managers from the specialist departments and for which well-structured processes are needed.

Why is the introduction of digital HR management software worthwhile?

A digital personnel information system, i.e. software that provides all the data required for decisions and future steps at the touch of a button, is a helpful tool. Firstly, because the digitally recorded data is much more up-to-date than the conventionally “maintained” Excel files. Double or triple “bookkeeping” is also no longer necessary. The software updates the entire database directly when new entries are made.

The digital personnel file, for example, not only stores all employee-related documents with all associated information digitally, but also forms and correspondence documents – also with automated functions. These automated processes free up HR resources that can be used for strategy development, for example.

What kind of reports can I create from the digital personnel file software?

The digital personnel file software offers a variety of reporting options that can help you generate important information about your employees. The most common reports include:

  • Employee profiles
  • Performance reports
  • Training reports (e.g. to determine the training needs of your employees)
  • Absence reports
  • Deployment planning reports (e.g. in shift operation)
die richtige Zeiterfassungssoftware finden

The digital personnel file software thus offers a variety of reporting options that enable companies to generate and analyze important information about their employees. Effective use of these reports can help to optimize HR processes and improve employee performance. However, it is important to ensure that the data in the reports is accurate and up-to-date to enable informed decision making. Digital personnel file software can therefore become a valuable tool for companies to make their HR department more efficient and effective.

What functions does the digital personnel file software offer?

The digital personnel file software offers a wide range of functions that make the process of managing personnel data more efficient and transparent. The main functions include:

1. Central data storage: the software provides a central platform for storing and managing personnel files. This means that all documents such as contracts, references and work certificates can be stored digitally and can be accessed at any time and from anywhere.

2. Workflow management: The software supports the automated control of processes relating to personnel files. For example, approval procedures or deadline monitoring can be triggered automatically.

3. Security and data protection: The digital personnel file software guarantees the highest security and data protection standards. All data is protected against unauthorized access and manipulation.

4. Reporting and analysis functions: With the help of reporting and analysis functions, companies can create detailed evaluations and statistics on employee data and processes. These can be used to optimize HR processes.

5. Integration into other HR systems: The digital personnel file software can be seamlessly integrated into other HR systems, such as payroll systems or applicant management systems. This allows company processes to be further automated and made more efficient.

It is important to pay attention to the specific requirements of the company when selecting digital personnel file software. This is exactly where HRNeeds can support you.

The advantages of personnel management software

However, such a system not only creates freedom for HR work, it also has other advantages: The HR software solutions for personnel management and digital personnel files listed at HRNeeds comply with data protection regulations and are audit-proof.

In short, digital HR management has the following advantages:

  • Time saved for the HR department
  • Management of paper files is minimized
  • Storage of personal data in accordance with GDPR
  • Increased efficiency
  • Maintaining high quality standards
  • Cost optimization

Complete solution or individual modules for digital HR management?

HR management software for HR can be integrated as a complete solution. However, individual modules can also be selected – depending on requirements and wishes. The solutions are made up of the following modules, among others:

  • Personnel accounting (payroll)
  • Applicant management
  • Onboarding
  • Digital personnel file
  • Personnel development
  • Training management
  • Time management
  • Digital travel expense accounting
  • Software-supported driver’s license control

Advantages of the digital personnel file

  • lean processes
  • fast data access to the employee’s personnel file
  • structured document management
  • compliant with data protection
  • automatic reminder functions
  • space-saving and no need for paper
  • cost-reducing
  • Transparency and the same level of knowledge for all
Example from practice
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A practical example

Digitization of an HR department: purpose-driven, not software-obsessed

The medium-sized Rose Druck GmbH decided to digitalize part of its HR department in 2021. The family-run printing company wanted to support recruiting with suitable software. However, in the search for a suitable solution, the idea arose to digitally map other operational HR processes directly. In order to get closer to its own aspirations and the core task of the HR department: being there for current employees, supporting them and finding and hiring new employees. As a partner for the search for a suitable HR solution, the company relied on the comparison portal HRNeeds.</strong

The initial situation

Rose Druck is an owner-managed family business in the printing industry based in Landau/Pfalz, which can now look back on 173 years of history. The company produces high-circulation advertising inserts, catalog sections and magazines in a three-shift operation using the gravure printing process – with 144 employees. And it is doing so successfully: while the industry is shrinking and capacities are being shut down, Rose Druck is increasing its workforce and expanding its machine capacity.

“We don’t just say family business on the packaging, we are one. The Rose family attaches great importance to this,” says HR Manager Timo Krause. This can be seen, among other things, in the fact that Managing Director Bernd Rose always has an open ear for the entire staff, including providing support in employees’ private matters.

Timo Krause generally manages the HR department alone. He is occasionally supported and represented by a colleague from Financial Accounting. “I would give the HR department 1.5 positions,” says Krause. He is also responsible for quality management and the coordination of EHS management. EHS stands for “Environment, Health and Safety”. “I am the link between all the officers who are needed for this. And I regulate communication between the authorities, the employees and the management,” he explains his extended area of responsibility.

Rose Druck uses a professional software solution for time recording, which can also be used to correctly display the surcharges for Sunday, public holiday or night work, the so-called SFN surcharges, and implement them in accordance with tax regulations. Payroll accounting is handled with software from Datev. Evaluations and statistics, personnel lists and recruiting, on the other hand, are still processed using Excel files – purely manually.

The problem: manual processes

This construct results in an enormous amount of work for the HR department. This increased once again in 2021 due to the increase in personnel. The company hired almost 50 new employees. “That was a huge challenge,” says Krause. For example, applications were recorded manually in an Excel spreadsheet. In addition, countless other Excel lists and tables had to be maintained on the topics of wages and salaries, occupational health check-ups and “hardware” issued – such as keys and work clothing. The same applied to personnel statistics, headcount, sickness statistics and the overview of fixed-term contracts and probationary periods. Excel and Lotus Notes were the main tools used here. As the individual files could not be synchronized, updating one file entailed manually correcting other Excel spreadsheets. These update processes were not only time-consuming, but also prone to errors.

Timo Krause says: “All these things were recorded in lists and I set myself reminders in the calendar. At the end of the month, for example, I looked at the list for the upcoming end of probationary periods to make sure I didn’t miss anything and meet deadlines. There were no interlocking systems.”

The situation was no different in the area of applicant management. Applications were recorded manually and the applicant matrix was also maintained manually. The consent of the works council had to be obtained manually for new hires. These processes also required the maintenance of numerous files to ensure that they were up to date. And made keeping an overview complicated. In addition, data protection had to be ensured “manually”. For example, when communicating via Lotus Notes, sensitive applicant data was deleted manually after the application process was completed in accordance with the legal requirements of the GDPR.

Krause

Rethinking the situation

The large number of new hires in 2021 led to a further increase in personnel administration work. Initially, Rose Druck was still toying with the idea of using the Microsoft Access tool to create a link between the large number of individual files. “I came across an advertisement from an HR software provider via a careers network. After a demo appointment, I realized that there were far better solutions. That’s how the project to look at professional HR software solutions came about,” says Timo Krause, describing the start of the transformation of his own HR department.

Discussions with the management gave rise to the idea of purchasing a software solution that goes beyond the “applicant management” module. More was desired and it made sense to map further digital HR processes using a digital solution. This ultimately led to the search for an overall digital solution with the core module “digital personnel file”, in which all personnel documents can be managed, stored and archived securely and in compliance with data protection regulations. Timo Krause agreed with the company’s management to look for a suitable solution.

The main objective can be summarized as follows: First and foremost, to relieve the HR department of the burden of operational personnel administration. This is accompanied by more time for core HR tasks: employee development, easy access and efficient management of personnel files, the development of an onboarding process and employee retention. Recruiting and personnel marketing as well as employer branding measures should also become more central to HR work.

Linn Rose

What the software should do

In order to achieve these goals, the software solution must be able to perform well and map a variety of processes. For example, employees should be able to request their absences via an app, which are then automatically transferred to the time recording system. Employee appraisals, self-assessments and evaluations should be able to be planned and implemented via the software. Target agreements should also be recorded in it. There will also be an Employee Self Service, or ESS for short. This will give all employees access to the documents relating to them, their employment contract, files and documents. This will reduce the workload of the HR department, while at the same time eliminating waiting times and avoidable travel for employees. The coordination effort is reduced for everyone.

As far as recruiting is concerned, multiposting of job advertisements should be possible: Ads are automatically displayed on various platforms. The same applies to the company’s own career website. This will be set up with a contact form and corresponding interface in order to channel as many ads as possible towards the new HR software. “As a medium-sized company, it is also important to us that we don’t want to exclude any applications. Anyone who sends us applications in the old-fashioned way will of course still be considered and included in the applicant pool. We don’t want to create an exclusion criterion here; all paths to us should be open,” says Head of HR Timo Krause.

In general, the administrative workload for the entire application process will be reduced thanks to the digital support, allowing the HR department to focus even more on the essentials, namely the people behind the applications. Rose Druck sees the software as a support tool in the area of organization in order to be able to make fair and good personal individual decisions and take all criteria into account. All parties involved should also be ideally involved and all processes should be GDPR-compliant, and the administrative effort for the entire application process will be reduced by the digital support, allowing the HR department to focus even more on the essentials, namely the people behind the applications. Rose Druck sees the software as a support tool in the area of organization in order to be able to make fair and good personal individual decisions and take all criteria into account. All parties involved should also be ideally involved and all processes should be GDPR-compliant.

For example, the software takes over the operational administrative work of recording the applications received, the application phases can be adjusted at the click of a mouse and all those involved in the process can use the software within the program to provide initial feedback on the applications received. “All processes relating to an applicant are automatically assigned to their profile,” says Krause, explaining the benefits of the HR software. All subsequent steps in the process up to a contract offer or rejection are also organized via the software. If the employee is hired, the master data from the application can be transferred directly to the digital personnel file. This data can also be transferred directly to Payroll via an interface to Datev. This creates a continuous process from job advertisement to the recruitment of suitable employees to the creation of personnel files.

In addition, the software should be able to collect numerous evaluations and display them directly in graphic form. This creates efficient workflows, makes work processes clearer, saves time and leads to the desired data security of applicant and employee data.

Timo Krause and Linn Rose, daughter of the Managing Director and project manager, emphasize that all of these measures are intended to ensure that digitalization saves more time for employees and applicants and less time for administrative processes. They are not in love with software; it is about using digital technologies for the right purpose.

The search for the right software solution for electronic personnel files

Once the introduction of a digital personnel file had been decided, the search for a suitable software solution began. The HRNeeds comparison portal for HR software proved to be a reliable and competent partner. The portal compares the company-specific requirements with the software solutions of the software manufacturers and compiles a list of providers.

HRNeeds has developed its own analysis tool that addresses all key aspects in order to make targeted progress. This identifies tailor-made software solutions based on individual customer requirements and wishes. A brief telephone consultation between HRNeeds’ HR experts and the customer ensures that customer requirements and wishes are discussed and any outstanding issues are clarified.

The customer then receives a free and non-binding list of the identified software solutions with a detailed summary of the recommended software solutions – including all information to help the customer make a decision. HRNeeds compares over 60 HR software solutions for the user and thus provides an overview of the otherwise confusing market of providers. For companies, this means that they can quickly access a list of suitable solutions and thus avoid having to carry out their own time-consuming research.

In the case of Rose Druck, the collaboration went even further. The HR experts from HRNeeds were also involved in the creation of a requirements profile on request. They also helped with the target/actual comparison after receiving the offers. This enabled Rose Druck to make a fact-based decision regarding the HR software, which is also easy to use and meets the commercial aspects.

The functions of the selected software solution not only best meet the requirements of the medium-sized company. The digital HR solution also has another advantage: Datev is a cooperation partner of the solution provider, so there is an API interface between the two systems. This makes them very compatible.

The implementation of HR software

Although Rose Druck chose the complete package of an HR software developer, it is introducing its software step by step. “We started with the recruiting software because it takes the biggest load off our shoulders,” says Timo Krause, describing the approach. It allows us to map the entire application process digitally.

This will be followed by the digitalization of personnel administration. At the same time, access will be created for all employees – with the corresponding access rights and their roles within the company. “This will drive forward the topic of digital personnel files,” says Timo Krause. For example, employment contract and letter templates are integrated into the system. This means that appropriate contracts can be selected depending on their status, which are then automatically supplemented with personal data – including the option of adding an electronic signature to these documents.
However, existing paper files will not be digitized, explains Timo Krause. There will be a cut-off date from which all documents will only be stored digitally. Everything that happened before that will continue to exist in paper form.

Implementation of the recruiting tool has already begun. Any minor technical problems that arose were solved by the selected software provider. This has brought Rose Druck a big step closer to its goal: The medium-sized company can organize and manage its corporate growth in the HR area more effectively in order to once again be able to pay more targeted attention to its employees, the people working in the company.

Is the digital personnel file software safe from data misuse?

With secure digital personnel file software, companies can make their HR processes more effective and efficient and ensure the data protection of their employees. In principle, this type of HR software is designed to protect against data misuse as standard. However, there are a few factors to consider to ensure that the data in the digital personnel file is protected.

The digital personnel file software should

  • be up to date both technically and organizationally.
  • Use secure SSL encryption and carry out regular security updates.
  • Make access rights clearly definable and controllable.

It is also important that employees are trained in how to use the digital personnel file software. They should be sensitized to the topic of data protection and know how to handle the data. Furthermore, security features such as SSL encryption, security updates and access rights are particularly important when comparing software providers.

HRNeeds examines your individual requirements for a digital personnel file and can make clear recommendations.