By Bartosz Wszeborowski, advocate, senior lawyer, and Julia Łuszczewska, paralegal, PCS Paruch Chruściel Schiffter Stępień Kanclerz | Littler
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Employees and employers face new challenges due to the rapid pace of technological transformation. The need for change was accelerated particularly by the pandemic and the subsequent crisis.

The digitalisation of HR processes in organisations has become one of the key responses to these challenges. Modern technologies such as digital HR data management, predictive analytics and advanced HR algorithms have revolutionised approaches to HR management. With these changes, new forms of working have emerged, and the role of HR departments has undergone a significant transformation.

In such a dynamic environment, the introduction of electronic workflows, both internally and in relations with business partners, has become crucial to improve the efficiency and cost-effectiveness of processes. Despite this, for many Polish companies the transition to paperless systems is still a challenge. EFL Leasing Credit Agricole’s research, Digital revolution on the leasing market. Under the magnifying glass[1] shows that 66% of companies need up to three years to completely convert paper documentation to electronic.

Electronic employee records

As of 2019, companies have the option of keeping employee records in both paper and digital form – the so-called e-files; databases of employment history. These may include documentation related to recruitment, employment and its termination, disciplinary sanctions and sobriety control. Moreover, they must meet certain legal requirements. Paper documents that have been converted into electronic form must be signed with a seal or electronic signature. An electronically signed document has the same legal validity as a hand signed document.

Benefits of electronic documentation

This digital tool builds a positive employee experience and ensures availability of data at every stage of employment in the organisation. E-documents, combined with access to internal electronic documents such as regulations and procedures, are the basis for
a modern employee experience.

Digitalisation of employee files brings benefits not only in the area of document management, but also in terms of legal compliance. Electronic file storage enables easier compliance with legal standards such as GDPR. As a result, the risk of data breaches and potential penalties for inadequate data security is significantly reduced.

Furthermore, going paperless is a way to make a positive social and environmental impact. According to Deloitte’s Global 2021 Millennial and Gen Z survey, 55% of millennials surveyed consider climate change as a great concern and 50% want to work in a business with ethical principles. It shows that more active involvement in ESG (Environmental, Social, and Governance) activities can be a deciding factor in working for a company.

Protection of electronically stored data

Digital transformation, despite its many advantages, has led to many risks. Cyber threats have emerged as a major challenge, with unauthorised data access and data leaks becoming increasingly common. Therefore, companies must implement special measures to properly protect sensitive information.

Employers managing electronic documentation are legally required to maintain these records in a system ensuring:

  • Protection against damage, loss and unauthorised access
  • Integrity of the documentation
  • Permanent access to documentation for authorised persons
  • Identification of persons with access to the documentation and recording changes

Moreover, to effectively safeguard electronic documentation, it is necessary to:

  • Carry out systematic analysis of risks
  • Develop security procedures and processing systems, including access, backup and storage procedures
  • Use security measures adequate to the risks
  • Continuously monitor and verify the effectiveness of all organisational and technical methods of security
  • Prepare and implement plans for long-term storage of documentation

A European vision of digitalisation

Digitalisation has also gained attention at the European level. On 9 March 2021, the European Commission presented the initiative Digital Decade of Europe: digital goals for 2030, which aims to promote digital transformation across Europe. A key element of this transformation is the development of digital competences of employees, which are necessary to function effectively in the new reality.

Planning and implementation of digital HR solutions

Digital employee documentation is only the beginning. It is important to carefully plan the next steps that will enable the full usage of modern HR solutions. This process should start with an audit of existing processes and documents to identify those that need to be digitalised. Secondly, an analysis of the available support tools should be carried out.

Electronic Human Resources Management (eHRM)

HR systems are evolving rapidly, opening up new automation opportunities for companies. Modern eHRM platforms have a variety of features that may include:

  • e-recruitment – reducing costs, and speeding up the process of acquiring talents
  • e-learning – enabling the creation of development programs that are interactive, intuitive, and focused on employees
  • e-salaries – facilitating the efficient design, management, and reporting of salary policies
  • e-health and safety at work – assisting managers in monitoring the effectiveness of activities aiming to reduce occupational risk
  • e-human resources planning – facilitating gathering, processing and updating skills and competences of employees

Effective change management – the key role of the HR department

The last step in the transformation process is to create a solid implementation plan that takes into account all the stages necessary to manage change in the organisation. This plan should feature a timetable, staff involvement and appropriate training.

The HR department is crucial in driving organisational change. It is responsible for:

  • understanding and predicting changes, as well as providing adequate support to employees and managers
  • embracing social initiatives, particularly those focused on environmental sustainability
  • improving digital inclusion, not only in terms of technology access, but also in terms of employee digital skills development

Digital transformation of HR departments is a must for modern companies. By introducing e-files and advanced HR management systems, companies can automate processes, increase efficiency and create a better work environment. To take the most of these tools, it is crucial to plan the transformation carefully and support employees in developing their skills. This is essential for success in the digital age.

[1] https://efl.pl/pl/biznes-i-ty/raporty/raport-efl-rewolucja-cyfrowa-w-polsce