Along with the regulation in the national legislation, by GEO no. 36/2021, of the possibility of concluding individual employment contracts and other documents in the HR area using the qualified electronic signature, we are convinced that the question “Why not continue on paper?” appears. The short answer we can give you – because you can benefit from a cost reduction in HR of up to 45%, using remote qualified electronic signature and electronic archiving!
And not because we say so, but because we can present you an infographic with the exact calculation on which this significant percentage is based, plus the detailed explanation of the elements considered in its realization. In the end, the decision is yours.
In a company with 2,000 employees and a staff turnover of 30% per year, all employees sign, on average, 5 documents per year (10 pages) to which are added 12 documents (26 pages) in the case of new employees. Thus, we are talking about a total of 17,200 documents (35,600 pages) related to HR processes and personnel files, in one year. More details on the human resources documents considered in carrying out this calculation and infographic can be found at the end of the article.
HR on paper
In the case of paper based human resources processes, we must take into account, first of all, the costs on consumables for printing documents and their physical archiving, which amounts, for a total of 35,600 pages, to 2,078 euros.
To these are added the costs of sending 20% of the documents by courier (in the case of employees from other cities, who cannot show up at the company’s headquarters for signing, etc.), amounting to 6,880 euros.
However, the most substantial “consumption” is noticeable in terms of the HR staff – for 2,000 employees having to take into account at least two HR people permanently involved in everything regarding the process of signing and keeping on paper the human resources documents , in which case we are talking about 42,000 euros salary costs in a year (estimated net salary of 1,000 euros / month / HR employee).
These two people will devote all their time to carrying out tasks that appear only when using paper in the processes of employment – print in two copies, arranging documents, obtaining potential internal signatures needed, effective meeting with the employee / future employee , physical archiving in the personnel file, scanning, copying, sending documents in an envelope by courier, search in the physical archive, etc. Basically, the HR staff in question will be paid almost exclusively for the production and handling of paper documents, to the detriment of other tasks.
In short, in the case of paper HR, the total costs amount to 50,958 euros / year and those per employee to 25,479 euros / year.
HR with qualified remote electronic signature and electronic archiving
In the case of opting for a 100% digital HR, using the Paperless flowSIGN qualified remote electronic signature solution and electronic archiving, we take into account, first of all, the costs with the remote video identification processes worth 1,950 euros for half of the new employees.
To these are added 8,000 euros for 4,000 qualified short-term certificates (issued for employees, twice a year, with a validity of 4-5 days, during which several signatures can be applied) and 250 euros for 10 qualified long-term certificates (issued to the employer – if, according to internal procedures, there are several representatives who sign the HR documents, with continuous validity).
Regarding the electronic signatures with time stamp included, for the 17,200 documents we are talking about 34,4000 signatures, with a total cost of 4,128 euros – only 12 eurocents per signature.
Regarding the transmission of documents, made in this case 100% electronically, the cost is 600 euros for 10 Paperless flowSIGN licenses (for the persons from the employer who initiate the signing flows), with 100% of the documents transmitted electronically.
On the electronic archiving side, the total volume of documents translates into approximately 5 GB, respectively a cost of 685 euros. An exact calculation of physical vs. electronic archiving can be found here.
The HR staff is the element with the highest cost reductions – 12,600 euros, taking into account the fact that the two HR people mentioned above occupy, in this scenario, only 30% of their time with the processes of electronic signing and storage of human resources documents. The 70% reduction lies in the disappearance of those tasks specific to the use of paper in the processes of employment and development of labor relations, mentioned above.
In short, in the case of 100% digital HR, the total costs amount to 28,213 euro / year and those per employee to 14,106 euro / year.
Reduce costs in HR by up to 45%, with qualified remote electronic signature and electronic archiving!
HR documents considered for calculation and infographics:
- employment: Job offer (3 pg), GDPR statement (4 pg), Individual employment contract (3 pg), Appendix job description (4 pg), Appendix objectives and performance criteria (3 pg), Health statement (1 pg), Basic place statement (1 pg), CCM statement (1 pg), PV internal regulations (1 pg), Relatives in maintenance statement (3 pg), Assessment (1 pg), Activity report ( 1 pg)
- general per year: additional documents, evaluations, etc.