Definition
What is a digital personnel file?
A digital personnel file is a software solution for the digital and data protection-compliant storage and management of information and documents about an employee that are important for management. These include employment contracts, payslips, vacation requests and many other documents. The digitalization of personnel files enables companies to make their HR processes more efficient and transparent.
What is a digital personnel file made up of?
There are no legal requirements that specify exactly how a digital personnel file has to be structured or what content and documents it has to include. Companies use the electronic personnel file to store documents and information on employees that are important for HR management. These include:
- Master data: Personal data such as name, address, date of birth and social security number
- Contract documents: Employment contract, supplementary agreements or contract amendments
- Proof of qualification: References, certificates or proof of further training
- Performance assessments: Documentation of staff meetings, target agreements or feedback reports
- Absence data: Vacation requests, sick notes or absences
- Salary information: Pay slips, salary history or bonus agreements
What does NOT belong in the digital personnel file?
A digital personnel file should not include any information that is not directly related to the employment relationship or the employee’s professional performance. Examples of content that does not belong in an electronic personnel file are:
- Private information: Personal opinions, private correspondence or information about the employee’s private life
- Medical data: Detailed medical reports or diagnoses, unless they are relevant to the employment relationship (e.g. certificates of incapacity for work)
- Political or religious views: Information about the employee’s political or religious convictions
- Rumors or unsubstantiated accusations: Information based on hearsay or unproven allegations
- Confidential information of other employees: Data that could violate the privacy of other employees
These guidelines help to limit the electronic personnel file to relevant and necessary information and content and to ensure data protection.
Advantages of digital employee records
A digital personnel file offers many advantages over a paper-based personnel file. The most important advantages include the following:
- Efficiency: The digital personnel file significantly simplifies personnel data management. Documents can be found, processed and archived more quickly than with paper files. This saves time and reduces the administrative workload in the HR department.
- Flexible access: Electronic personnel files can be viewed by authorized persons at any time and place. This facilitates and accelerates collaboration within the HR department as well as between HR employees and other specialist departments within the company.
- Security and data protection: Personnel files can be better protected against unauthorized access through digitalization. Encryption and access rights ensure that only authorized persons can access the data and documents.
- Automation: By digitalizing the personnel file, you lay the foundation for automation in the HR department. Many HR processes, such as reminders of deadlines or the creation of reports, can be automated. This reduces errors and increases productivity in the HR department.
- Transparency: Every change and every access to the file can be logged so you can trace who viewed or edited what information at what time.
- Reduced costs: The digitalization of personnel files can reduce company costs in the long term by contributing to the optimization of personnel processes.
- Space saving: Considerably reduces storage space requirements, since physical files no longer need to be stored. This advantage is especially important at large companies. Eliminating the need for paper documents reduces paper consumption and thus helps protect the environment.
Introducing digital personnel files to a company
Digitalizing the personnel files in a company is a significant step that requires careful planning and implementation. The following steps should be taken to ensure that the introduction of the electronic personnel file will be a success:
Requirements analysis: Take time for a thorough inventory. How are personnel data and documents currently managed and what personnel processes are involved? What are the challenges and what potential is there for optimization? Identify the software requirements and objectives to be achieved by implementing the electronic personnel file. The next step is to determine which software functions your company requires.
Software selection: There are many different providers of software solutions for digital personnel files. Choose the software that best meets your company’s requirements and offers the desired functions. Pay attention to user-friendliness, security functions and options for integrating the solution into existing systems, like SAP. Also make sure that the software you choose for the digital personnel file complies with the applicable data protection regulations such as data protection and that robust security measures are in place to protect sensitive personal data. You should also ask yourself whether you prefer a cloud solution, on-site deployment or a hybrid model.
Data migration: Plan the migration of existing paper files to the digital personnel file. This can be done by scanning the documents in a scanning workflow or by entering the data manually. Software providers often also provide this service. Make sure that the data is transferred correctly and completely.
Introduction and ongoing support: Implement the software step by step and integrate the relevant data. This also includes defining roles and authorizations.
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digitalizing personnel files – tips for a legally compliant transition
- First, the basics: what does it actually mean to digitize paper files in HR?
- Find out about the benefits of digitizing your files and how exactly the digital file works.
- Benefit from a compact overview of the most important legal framework conditions and data protection requirements.
- Receive valuable practical tips on digitizing your personnel files – and get support from our digitization experts.
digital employee records and data protection
Data protection is a key issue that requires special attention when introducing a digital personnel file.
Electronic personnel files contain sensitive personal data that must be protected in accordance with data protection regulations. Companies are obliged to take appropriate technical and organizational measures to ensure the confidentiality, integrity and availability of content. This includes data encryption, the implementation of access rights and regular security checks. In this context, it is also important to observe retention of hr records and deletion periods.
Suitable software for the digital personnel file meets the strict data protection requirements through various measures:
- Encryption: All data is encrypted during transmission as well as storage to prevent unauthorized access.
- Access rights: A detailed authorization concept ensures that only authorized persons have access to certain data.
- Logging: All accesses and changes to the data are logged so they can be traced and monitored.
- Data economy: Only the most necessary data is collected and processed in order to minimize the risk of data breaches.
- Regular updates: The software is regularly updated to eliminate security vulnerabilities and comply with current data protection requirements.
Another important aspect is transparency with respect to employees. They must be informed about which data is collected, stored and processed, and they have the right to receive information about the contents of their personnel file.
By complying with these data protection requirements, companies can ensure that the digitalization of personnel files is not only efficient but also legally compliant and trustworthy.
good to know
Does the employees have to approve the introduction of the digital personnel file?
The employees may approve the introduction of a digital personnel file. In some cases, the works council has in some countries a right of co-determination with regard to the introduction and use of technical equipment intended to monitor the behavior or performance of employees. Since an electronic personnel file includes such technical equipment, the consent of the employees might be required.
It is advisable to involve the works council in the planning process at an early stage and discuss the requirements and concerns together. Close cooperation can help ensure a smooth introduction of the software and increase employee acceptance.
Who is allowed to view the personnel file?
Access to the digital personnel file is strictly regulated in order to ensure the confidentiality and data protection of the personal information it contains. Clear role and rights management is essential. The following persons are always allowed to view the personnel file:
- The employee in question: Every employee has the right to inspect their own personnel file. This includes the right to information about the stored content and its origin.
- Human resources managers: Employees of the HR department who are responsible for managing the personnel files may access the files.
- Supervisors: Direct supervisors may inspect the personnel file if this is necessary for their duties. However, this should only be done as part of their management duties.
- External service providers: In certain cases, external service providers, such as payroll accountants or IT service providers, may also have access to the personnel file. However, this should only be allowed under strict data protection regulations and with corresponding agreements.
It is important for access to the personnel file to be documented in the software at all times and to always limit it to what is necessary to guarantee data protection.
FAQ
Frequently asked questions about the digital personnel file
What is a digital personnel file?
The digital personnel file is a software solution for the digital and data protection-compliant storage and management of employee data. This enables companies not only to optimize their HR processes but also to increase transparency and data protection.
How does the digital personnel file work?
The digital personnel file stores and manages employee information electronically in a secure, central database. Authorized persons can access the data and documents, update them and search for specific information. Security measures such as encryption and access controls protect the data from unauthorized access.
Is the digital personnel file mandatory?
The digital personnel file is not required by law. Companies can decide for themselves whether they want to use traditional paper files or electronic personnel files. However, the digital personnel file offers many advantages over the paper file in terms of efficiency and security.
Which personnel documents must be kept in the original?
Some personnel documents must be kept by companies in the original, in particular employment contracts, references and certificates as well as declarations of consent. These documents are important as legal evidence and for compliance with statutory regulations.
What happens to the digital personnel file after termination?
After termination of an employee, the digital personnel file is archived in accordance with the statutory retention periods of hr records. During this time, it remains accessible, but only to authorized persons and for specific purposes such as legal evidence. Once the retention period of hr records has elapsed, the data and documents are securely deleted or anonymized.
Practical examples
The digital personnel file in use
The digital personnel file at the Feser-Graf Group
The Feser-Graf Group, the fifth largest car dealer in Germany, was faced with the challenge of managing rapid company growth. With the merger of the family businesses Feser and Graf at the turn of the millennium, the group grew continuously, which was also reflected in its number of employees, which tripled from around 600 in the year 2000 to around 1,800.
Managing the personnel files posed a particular challenge as some of them were still maintained at the individual locations. This made it difficult for the HR department to keep track of file histories and to work effectively over the long term since the time-consuming work with paper files left little time for important strategic HR tasks such as personnel management and personnel development.
To overcome these challenges, the Feser-Graf Group decided to introduce easy hr. This software for the digital personnel file not only made employee-related data and documents easier to manage, it also offered functions for automating HR processes, such as onboarding and offboarding, making them much more efficient. In addition to this increase in efficiency, the user-friendliness of the solution ensured a high level of acceptance among employees.
The digital personnel file at Heinrich Schmid
The Heinrich Schmid Group, a construction business with 5,500 employees, was faced with the challenge of digitalizing and automating its extensive and complex business processes. Many processes were manual and paper-based, which led to delays, errors and a high administrative burden. easy hr brought decisive changes to the company: Personnel processes were digitized, which reduced paper consumption and made it easier to access important information and documents. Manual processes, such as approval processes for leave requests and time sheets, were automated, shortening processing times and reducing the error rate. The introduction of easy hr enabled extensive data analysis, which helped the company identify trends and patterns and make informed decisions. Employees and managers now had better access to relevant information and could track the status of applications and processes in real time.
Overall, the implementation of easy hr significantly increased efficiency and productivity, as it eliminated many time-consuming manual tasks. These changes helped Heinrich Schmid optimize its business processes and increase employee satisfaction.
the right data in the right hands