HUMAN RESOURCES

DOCUMENT MANAGEMENT

WHITE PAPER
 CONTENTS

3 The Role of HR in Building Competitive Organizations

4 What Is Changing?

5 What Do These Changes Mean for HR Managers?

5 Finding Solutions for Document Management

6 Integrated HR Document Management

7 Outsourcing and Highly Specialized Expertise

2 [Link] | [Link]
 THE ROLE OF HR IN BUILDING
COMPETITIVE ORGANIZATIONS
This White Paper explores
CEOs, and even Boards, are increasingly expecting HR
ways to free Human to be strategic.1 Yet, today many HR professionals are
forced to spend much of their time on administrative
Resources (HR) to achieve tasks, rather than strategic HR initiatives.2
its strategic mission: to
HR is one of the most document-intensive areas in an
make businesses more organization. Managers have to deal not only with the
competitive. It will look costs (time spent by staff in document management as
well as real estate expenses tied to document storage),
at off-loading the time- but also risks associated with protecting a high volume of
sensitive information.
consuming management of
employee records, achieving One has only to look at the varied types of documents
involved in HR management to get a feel for these
a more rapid response to challenges (Table 1). The average file contains 29 pages
of paper3everything from job applications and offer
complex audit and discovery letters to benefit plans and performance reviews.
requests, and mitigating risk
When organizations make improvements, with any
in protecting some of an challenge of this magnitude, there is a correspondingly
large payoff. In addition to cost savings, reducing the
organizations most sensitive administrative burden on HR opens up opportunities
private information. for the business as a whole: Research shows that
businesses that have HR involved in strategy have twice
the growth as businesses that do not. In order to fulfill
this strategic role and help build a competitive business,
HR needs to be flexible, agile and extremely up-to-date
on their human capital information.4

Creelman, D. and Lambert A. The Board and HR: How board oversight of human
1

capital works, Creelman Lambert (2011)

2
Shuster, D. The New HR Manager: Moving From Administrative To Strategic,
Forbes (February 11, 2013)
3
Best Practices: Shifting HR Resources from Records Management to Strategic
Initiatives. Iron Mountain White Paper (2009)
4
Hong, Y. Managing HR to Create Competitive Advantage, Financial Post.
[Link] (March 10, 2010). Updated March 12, 2010.

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TABLE 1: Example of HR Records Topology

EMPLOYEE OTHER
TALENT
SCREENING AND ON-BOARDING GENERAL HR (E.G. CLAIMS,
MANAGEMENT
SELECTION LITIGATION)
Resumes and Government forms Performance Wage and salary Unemployment
applications Benefit forms management information Records related to
Interview records Emergency Talent reviews Wage safety/disability
Pre-employment notification forms Training and garnishments Diversity reporting
testing certifications Formal discipline Records for
Verification and Promotions and Job-related litigation
reference checks transfers medical records
Exit interviews

WHAT IS CHANGING? managing HR files means providing faster access to more

information with stronger security.
Controlling costs will always be a force for change. But HR
must also deal with several other significant trends that DISCOVERY AND COMPLIANCE
affect document management.
New regulations are increasing the burden of adequately
GLOBALIZATION and consistently managing HR records. In the U.S., changes
in Federal Rules of Civil Procedure (FRCP) means a
As companies expand, acquire, merge, and enter new
discovery involving any records must be fast and complete
geographies, so do HR record-keeping requirements. And
hard to accomplish in a paper-based HR environment.
with the increased distribution of HR documents comes a
Concurrently, compliance regulations have created
need for more centralized control and 24/7 access that is
greater requirements for retention and stricter controls
both fast and secure.
over private and Personally Identifiable Information (PII),
TECHNOLOGICAL CHANGE especially in the European Union. Matters of compliance
and record retrieval come to a head in the case of a law suit
HR departments have already embraced technology in
if documents are retained on a haphazard basis e.g., with
everything from recruiting to performance management
some documents in some departments being deleted every
to outplacement. However, the conversion, storage, and
three months and other departments retaining every piece
management of HR records present opportunities yet to be
of paper or kilobyte of information without limitation it
fully exploited.
wont help your cause before an attorney or a judge.6
FLEXIBLE RESPONSE TO CHANGING WORKFORCE
Employees are becoming more distributed, mobile and self-
servicing. Managers now expect fast, open self-service over
the Internet. In a world where tablets are outselling PCs,5

IDC Forecasts Worldwide Tablet Shipments to Surpass Portable PC Shipments in 2013, Total PC Shipments in 2015 IDC [Link] (May 28, 2013)
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6
Anderson, K. United States: Having A Good Document-Retention Policy Mondaq [Link], (September 4, 2013)

4 [Link] | [Link]
WHAT DO THESE CHANGES MEAN FOR and the goals HR Managers need to establish to lessen
their impact.
HR MANAGERS?
Fifty-six percent of HR departments across North America FINDING SOLUTIONS FOR DOCUMENT
report that the top reason for process transformation is
to free internal staff to focus on strategic issues.7 At the
MANAGEMENT
same time as HR managers struggle to contain cost, they HR has three tools for creating a fast, efficient and secure
are charged with the more strategic work of sourcing, HR Document Management:
developing and retaining talent. It is hard to find time for Streamline and update processes.
strategic work when burdened with managing
Use technology to automate document management.
paper documents.
Outsource or out task document management work
Most HR processes are manual and use paper documents. that is not a core function in your HR department or
Even if files originate in electronic form, many are still requires specialized expertise.
printed, signed, copied, mailed, and stored in file cabinets
in multiple locations. Over time, these distributed and In fact, these tools work best in combination. Updating
sometimes inconsistent processes can lead to poor processes in the absence of better automation involves a
reporting, inadequate audit capabilities, weak security lot of effort which may not maximize gains. Automation
controls and high storage costs. in the absence of outsourcing misses the chance to
dramatically reduce HRs administrative burden.
Table 2 summarizes the key issues facing HR Managers in
document management, their impact on the organization,

TABLE 2: Key Document Management Issues Facing HR Managers

ISSUES IMPACT WHAT HR MANAGERS MUST DO

Growing volumes (and Slow, sometimes incomplete ability Create fast and easy access to
duplication) of paper and to access employee files documents
electronic records Higher labor costs Ensure document security, backup
Manual processes to copy, email, Missing HR files and recovery
mail, and file HR documents Reduce storage and shipping costs
Duplication of effort
Inconsistent document Improve reporting and audit
Cant verify document retention
processes across locations capabilities
Delays in processing paperwork
Lack of reporting or audit Increase productivity
capability for more complicated Risk of fines for noncompliance
Reduce exposure to compliance fines
internal and external requests High storage and shipping costs
Optimize use of HR staff
Privacy and security concerns
These issues are significant not only on a day-to-day basis. Their impact can build over time and create a crisis during
trigger events like M&A, facility moves, law suits, and audits.

Global HR Transformation Report SharedXpertise (2010).

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FIGURE 1: Integrated HR Document Management

1 EMPLOYEE INFORMATION
PAPER DOCUMENTS
EMPLOYEE FILES
2 CONVERSION SERVICES

DAY FORWARD CONVERSION

3 SECONDARY
OFFSITE BACKUP
HOSTED ARCHIVE
Benefits Day forward scanning to convert
Compensation documents born on paper

Resumes
Applicant Files
DOCUMENT INDEXING
Performance Appraisals
DIGITAL RECORD CENTER
Credentials and
Certifications IMAGE ON DEMANDTM

Workers Comp. Claims Image on Demand conversion

for paper-based documentation

BACKFILE CONVERSION
Backfile conversion for the
bulk of conversion of existing
records to electronic form

HRMS INTEGRATION
HRMS/ERP/DMS

The data and this is not really surprising shows that and storage capabilities that make it easy to find what you
improving document management has a big payoff. need, when you need it. Figure 1 shows what this kind of
Two-thirds of those adopting paper-free processes report integrated solution looks likes.
a payback within 18 months and half actually get payback
in a single 12-month budgeting period.8 Also, people There are four aspects of HR document management that
experienced with paper-free processes report that, on need to be considered:
average, going digital speeds up responses to stakeholders
INTELLIGENT CONVERSION
by 4.6 times.9
HR has to assess its needs and processes to choose a
Furthermore, specialists in document management conversion strategy that fits best. Customers can choose
are continually developing better solutions to technical from one of three alternatives:
issues like security, enabling organizations that provide Day forward conversion: Determine a point in time and
persistent, end-to-end protection throughout an electronic begin scanning selected, or all, HR records from that
documents lifecycle.10 Automated and outsourced day forward
solutions, build on the foundation of well-executed
Image on Demand: Convert documents as they are
processes, are effective and get better every year.
requested from storage
An integrated HR Document Management Solution can Backfile conversion: Completely convert all backfile
offer standardized, centralized document management (historical) records

8
2013 AIIM - The Global Community of Information Professionals
9
ibid
10
Deshmukh, P. and Pratik Pande, A Study of Electronic Document Security International Journal of Computer Science and Mobile Computing Vol. 3, Issue. 1, (January, 2014)

6 [Link] | [Link]
The decision process involves consideration of factors such document management. According to IDC surveys,
as the frequency of retrieval or activity rate of the records, knowledge workers spend, on average, 8.8 hours per
the volume of records in the backfile, and the volume of week searching for information.11 HRs time is not free.
records created on a go-forward basis. According to data from the Occupational Employment
Statistics survey, in the US the median hourly wage of
DATA EXTRACTION AND CLASSIFICATION Human Resources managers is $47.9412; costs in Europe
Indexing records as they are converted will significantly will be comparable. Given that HR likely spends more time
improve access and retrieval time and enable legally than the average knowledge worker handling documents, it
defensible response during discovery or an audit. adds up to a significant misuse of resources.
Classifying documents into functional categories and cross-
referencing key document types allows for associated files However, to focus solely on costs is too narrow a
to be easily identified and retrieved. HR records already perspective. The real value in reducing the burden on HR
in electronic form should use the same indexing schema. professionals is that they can devote their skills to more
Note: it is critical to maintain chain of custody and tightly strategic activity. The real value of an up-to-date document
control the process as paper documents move toward the management system is that it improves service and
conversion site and are stored or destroyed after imaging. reduces risk. As with any successful business project, the
value is as much in helping the organization get results as
OFFSITE STORAGE FOR SECURITY AND it is in saving money.
STORAGE SAVINGS
It makes sense to outsource document management
Using a hosted archive for centralizing HR records offers
to experts who have both the specialized expertise and
a number of advantages. HR records are available 24/7
primary mission to create the best and most secure
while staffing and storage costs are borne by the host. The
centralized access to HR documents, using standard,
offsite archive also serves as a backup to ensure Business
consistent proven practices that demonstrate compliant
Continuity and Disaster Recovery for HR records. Finally,
HR records management. In addition, HR managers can
an experienced hosted archive service provider will likely
leverage the investments made by document management
have security resources and processes that would be
service providers in the latest technology, processes, and
expensive to duplicate.
security.
INTEGRATION WITH HR MANAGEMENT SYSTEMS
(HRMS/ERP/DMS) FOR MORE INFORMATION
To allow managers to call up all documents associated Learn more about Iron Mountains HR solutions that make
with a specific employee, there should be links between it easy to find what you need, when you need it and give
the imaged, indexed documents and the HRMS, replacing you more time and resources to commit to your strategic
the burdensome task of manually collecting distributed initiatives while improving your ability to prove chain-of-
HR information calls, emails, faxes, shipping invoices, custody to auditors, litigators, and regulatory bodies.
vouchers, receipts, and copies with a few mouse clicks by
authorized managers at their desktop.

OUTSOURCING AND HIGHLY-SPECIALIZED

EXPERTISE
Administering the high volume of paper cycled through
and ultimately stored in corporate files that are
documented by HR is not the best use of HR staffs time.
Furthermore, it is expensive to use HR staff to handle

Boyd, A. Managed Print and Document Services for Controlling Todays -- and Tomorrow s -- Information Costs IDC Executive Insights (January, 2011)
11

12
Occupational Employment and Wages, 11-3121 Human Resources Managers Bureau of Labor Statistics (May, 2012)

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ABOUT IRON MOUNTAIN
Iron Mountain Incorporated (NYSE: IRM) provides information management services that help organizations lower the costs, risks and
inefficiencies of managing their physical and digital data. Founded in 1951, Iron Mountain manages billions of information assets, including
backup and archival data, electronic records, document imaging, business records, secure shredding, and more, for organizations around the
world. Visit the company website at [Link] for more information.

2014 Iron Mountain Incorporated. All rights reserved. Iron Mountain and the design of the mountain are registered trademarks of Iron Mountain Incorporated in the U.S. and other countries. All other
trademarks are the property of their respective owners.

US-HR-EXT-WP-022814-001 [Link] | [Link]