The perks of implementing a digital employee record system.
In the world of human resources (HR), digital transformation is a growing trend in Germany. While there is no legal mandate for all companies to completely digitalize their personnel files by a specific date, the benefits of digital personnel files are becoming increasingly apparent.
The shift towards digital personnel files offers significant advantages for employers. With quick access and a structured overview, managing employee data becomes more efficient. Digital document management in HR departments brings relief and time-saving benefits, as electronic data storage minimizes the space required.
Since January 1, 2022, remuneration records must be kept electronically. This change is part of a broader move towards digitalization in HR, with many companies transitioning from storing important information on paper to digital storage.
Digital personnel files contain all documents and data relevant to an employee's employment. Career paths, references, application documents, certificates, and further training are included, as are relevant contracts such as training and employment contracts, terminations, warnings, and contract changes. Salary data with monthly statements must be securely stored in the digital personnel file.
Tax records, including data for income tax, health insurance, and social security, as well as the social security identification card, are also part of the digital personnel file. Copies of IDs, driver's licenses, and correspondence with the employee are included as well.
However, it's important to note that personal data, such as employee master data (names, addresses, dates of birth), is included in the digital personnel file. But medical reasons and medical findings do not belong in the digital personnel file due to medical confidentiality.
Entrepreneurs in Hamburg, a city experiencing a significant increase in data transfer, are increasingly taking advantage of digitalization opportunities. Companies like factorialhr.de offer digital personnel files for efficient work management.
In summary, while digital handling of some HR-related documents (like hiring forms) is allowed and increasingly common, German law does not currently impose a universal deadline for complete digitization of personnel files for all companies. Nevertheless, the benefits of digital personnel files are clear, and their adoption is likely to continue to grow.
- In the realm of business and technology, digital personnel files are becoming increasingly popular among companies, as they offer a structured overview and improved efficiency in managing employee data.
- Other sectors, such as finance, are also embracing digital storage, with Germany mandating digital storage for remuneration records since January 1, 2022, as part of a broader move towards digitalization in various business areas.
