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Most companies in the KSA are leaning towards implementing HR tech solutions like HR document management system to embrace digitization and innovation at an increasing rate. In keeping with the digitization policies of Vision 2030, businesses in the region are continually investing in a robust digital architecture to enhance operations.
Today, HR tech in Saudi Arabia is projected to generate over 75.9% of the market revenue.
Why Do Businesses in the KSA Need HR Document Management Systems?
As a part of active attempts to diversify the economy, the Saudi government has implemented numerous policies to attract businesses to the region. In the process, the worker-friendly policies have also consequently attracted a large number of expatriate workers. Presently, almost 75% of the total workforce consists of expatriates.
In addition to a diverse workforce, businesses must also navigate complex labour laws. With traditional document management practices, the process becomes very cumbersome with every little thing being having to filled out on manually. Data storage and relocation also becomes overly complicated, costing businesses hours in terms of productivity.
That’s when a human resource document management system comes in. Providing HR teams with a unified employee database where information can be easily accessed, a human resource document management system can help in increasing productivity significantly.
Benefits of Using a Human Resource Document Management System in the KSA
The benefits of using a human resource document management system or other HR tech to enhance operations isn’t going unnoticed by companies.
Almost 67% of Saudi companies have integrated cloud-based HR solutions.
Here are the top 10 benefits these companies have leverages implementing a human resource document management system for:
1. Centralized Data Storage and Access
In a human resource document management system, data is stored in a centralized database that makes it both for employees and HR teams to access it. All employee documents like onboarding forms, appointment letter, performance reports and salary slips can be stored in a single online archive where it can be accessed with a just a few clicks. This makes maintaining employee records more convenient as well.
2. Enhanced Security
HR document management systems also provide added security for maintaining employee records. As the database contains sensitive employee information, data security is definite a priority to prevent and breaches or data leaks. Most HRDMS come equipped with security features like data encryption and role-based controls.
3. Compliance
Navigating Saudi Arabian labour laws can be challenge, especially when working with a diverse workforce. From withholding taxes to deducting accurate amounts for social security contributions, it’s essential for businesses to process these correctly.
Besides this, companies also need to update payroll transactions in the WPS. SMEs can do it though Mudad, which makes the process much simpler, but ensuring compliance still remains a major factor.
Implementing a human resource document management system can make it easier for employees to keep track of payslips and documentation for any additional deductions. That way, when companies need to justify any additional tax withholdings or deductions to the Ministry of Labor, they can access the necessary records to do so with ease.
4. Efficient Recruitment and Onboarding
An efficient HR document management software can be integrated with a company’s ATS or other recruitment software to track candidate applications, resumes and even assessments.
Some HR document management software also come with features like e-sign, which can be a great plus for faster onboarding. Hired candidates can fill out necessary documents like onboarding forms and contracts digitally, allowing the company to not only reduce onboarding time but also add to a positive candidate experience.
5. Improved Employee Engagement
Considering how human resource document management systems can streamline the onboarding and recruitment process, employees receive a positive organizational experience right from the start.
Employers can also enable employee self-service portal to add to the convenience of employees. Employees can apply leaves, track their shifts and even raise queries for any discrepancies like inaccurate payroll calculation before they can escalate into compliance issues.
Companies can also conduct employee engagement surveys through HRDMS portal to understand employee sentiments. This can ensure that employers receive regular feedback about employee experience and can take measures to improve it further.
6. Better Productivity
With efficient data management, productivity is enhanced as communication gaps can be easily closed. Manual process for data management like data entry, retrieval and syncing take a lot less time as data is automatically duplicated and updated from various sources.
Employee records can also be made completely and partially accessible to the employees so that they don’t have to go through an entire approval flow for accessing documents like pay slips. Rather, it will be easier to just download it from the HRDMS portal. This ensure that less time is wasted in manual processes and productivity rates are boosted.
7. Agile and Scalable Business Framework
Traditional data management processes are just one mass hiring drive or a Saudization reform away from overwhelming and burning out most HR professionals in the KSA. However, comprehensive human resource document management systems are equipped for scalability. That way when new business or workforce needs arise, adapting to the changes is easier.
They are instrumental in navigating compliance laws and automating repetitive processes like processing payroll according to work hours and calculating deductions and social scheme contributions. That’s why, for businesses in Saudi Arabia, HR document management software can be major driver of long-term success.
8. Data-Driven Decision Making
Workforce insights are essential for business decisions. But accurate workforce trends are difficult to comprehend even through surveys. However, with a human resource document management system, gathering workforce data and analysing it to spot trends, patterns and employee sentiments becomes a more convenient process.
This data can then fuel data-driven decision making. HR managers and business leaders can strategize efficiently, making targeted decisions to address with workforce challenges and business needs.
9. Better Disaster Recovery
Data-security is a major aspect of any data management process. Hence, when it comes to securing data, businesses must prioritize data recovery and disaster management.
It is ideal to opt for a cloud-based HRDMS software, as data can be backed up to multiple servers. That way if one server fails, the back up servers can ensure seamless continuity in business operations. This is also a fail-safe method to make sure there is no data loss due to unforeseen events like data breaches or natural disasters.
10. Environmental Impact
A mostly digitized HR data management system can have significant environmental impact. Since most employee forms and documents would be processed digitally, there will be less use of paper, printer-inks and other necessities.
Not only can this impact paper production an industrial scale, but it can also reduce emissions and energy waste on producing and transporting paper. Going digital can have a long-term impact on cost-savings as well from less paper and ink usage.
Summing Up
Implementing a human resource document management system offers various advantages to companies in the KSA. From streamlining operations to facilitating better workforce insights to boosting employee engagement, companies can invest in a strong digital architecture through an HRDMS that promises growth. That way, they are not only ensuring their own adaptability but also aligning with national goals of digitization and diversification.
What reason would you consider implementing a human resource document management system for? Let us know in the comments.
