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HR Document Management Software (DMS)

I-9 forms, payroll information, performance reviews and more. As an HR manager or small business owner, you know that each employee needs a dedicated file for their documentation. If you’re overwhelmed with thick paper files and overstuffed filing cabinets, consider incorporating HR document management software to centralize your employee files digitally.

Continue reading to learn what HR document management software is, the benefits of using employee file management software, the best DMS providers and how to choose the right document management software for your organization.

What Is HR Document Management Software (DMS)?

HR document management software (DMS) is a tool to help acquire, store and manage essential documentation for employees in an organization. Employee document management software centralizes all of the most important HR files in one easily accessible location. These documents include:

  • Applications and resumes
  • I-9 forms
  • Benefits elections
  • Payroll documents
  • Performance reviews
  • Workers compensation documents
  • Insurance information

Benefits of Using Document Management Software for HR

Incorporating a DMS into your HR documentation process can eliminate tedious manual tasks and reduce paper use. Your organization can benefit from using employee file management software in several ways, including:

  • Securing important information. Most HR employee file management software includes secure file encryption and privacy settings that allow you to control who can access what documents.
  • Organizing documents. With HR document management software, you can store all of your key employee files digitally and eliminate the need to manually sort through paper documents.
  • Increasing HR productivity. Incorporating digital document storage with employee file management software allows key stakeholders across the organization to easily access the information they need.

While the benefits of HR employee file management software are plentiful, the specific features of each software provider ultimately determine whether it will be valuable to your company.

What Great HR Document Management Software Looks Like

Most employee file management software providers include the essential component — a digital filing cabinet for important employee documents. However, each software provider will offer different features and capabilities. The following features indicate a strong HR document management software provider.

Centralized Employee Files

Your HR document software should be a one-stop-shop for all of your employee documents. You shouldn’t have to search through different folders and dashboards to find the information you’re looking for. A provider with centralized employee files will host documents in an easily accessible, organized platform.

Compliance Assistance

The best employee file management software will help ensure that you comply with all requirements, keep documents updated with proper information and retain documents for the appropriate time period according to government and corporate regulations.

Secure and Private Document Storage

Security features that encrypt data upon uploading are a must have for your HR document storage software. Look for providers that allow you to assign access rights depending on specific roles, controlling who can see what documents.

Sharing Spaces

Along with custom privacy features, secure spaces allow you to share public documents with employees. These spaces provide a controlled setting for employees to view important HR documents.

Signature Capabilities

Most employee files require signatures and many HR document management software providers include electronic signature capabilities. While there are separate electronic signature software options available, employee document management software with signature capabilities eliminates the excess expense of multiple subscription fees.

Reporting Dashboards

Metrics and reporting dashboards allow you to address pain points in your HR department. HR document software equipped with custom reporting capabilities helps you dig into issues like high turnover and devise a plan of action to resolve them.


Whatever document storage software you select, you will want it to integrate with other HR systems. The best HR document management software will be part of a comprehensive, all-in-one HR solution.

The Top Seven HR Document Management Software of 2021

While you should complete your own research and consider as many options as possible, the following HR document management software providers are highly recognized within the industry.

1. Eddy

Leverage Eddy’s all-inclusive HR software platform to create, sign and store documents in a secure digital platform. Centralize documentation for each employee, from I-9s to non-competes. Eliminate multiple subscription fees and scattered information while integrating file management as part of a holistic digital HR solution.

2. ServiceNow

ServiceNow Employee Document Management helps create efficiencies with automated file purchase and legal hold, and easy-to-use permissions for document access. Easily configure retention, security and legal hold policies to automate your HR document compliance.

3. eFileCabinet

eFileCabinet is a secure choice to ensure your HR department remains compliant with government and corporate regulations.

With audit tracking and role-based user permissions, eFileCabinet makes sure that documents are only accessible by the appropriate people and provides detailed document history reports.

4. Document Locator

Increase the productivity of your organization with Document Locator’s employee file management software. Automate processes to increase productivity and consistency while remaining compliant with laws and regulations.

With Document Locator, you can manage files throughout your organization, not just the HR department.

5. DocuPhase

Go paperless and store all of your organization’s important information in one digital vault. DocuPhase allows you to host a variety of files in one central document management system with seamless connections between all of your departments and real-time reporting.

If your organization is based in a creative realm or you often work with different types of files, Docuphase lets you upload images, videos and more, and may be the best choice for you.

6. SearchExpress

Easily access your most important documents and automate processes with SearchExpress document management.

AI-powered machine learning replaces manual data entry and truly automates your employee file management, while search capabilities provide easy access to essential information.

7. DynaFile

DynaFile’s cloud-based file management allows your team to access important information from anywhere at any time.

Segmented access rules let you maintain one folder with different access abilities. Audit reports ensure that all employee files are complete and up to date, while encrypted document links allow you to share files with staff and auditors.

How to Pick the Software that’s Right for You

When investing in HR document management software, the following steps can help you pick the best option for your company.

1. Determine Your Needs

Meet with other stakeholders in your HR department to determine what you are looking for in document storage software. Together, you should pinpoint what you want to accomplish by incorporating a software provider.

2. Create a List of Preferred Features

Once you’ve identified what you’re looking for, create a list of preferred features that you’d like to have. For example, if you need employees to sign documents digitally, you’ll want file management software that includes electronic signature capabilities.

3. Research Your Options

Now that you know exactly what you’re looking for, research as many HR document management software providers as necessary to find the right one. If they offer a free trial, sign up and test out the system before fully committing.

4. Pick Your HR Document Management Software

After weighing your options and considering how each one fits your organizational needs, it’s time to make a choice. Having conducted thorough research and with a clear idea of what you want in document management software, trust your decision and commit to it.


Eliminate the headache of manually processing paper HR documents. Employee document management software can help organize important information and ensure you remain legally compliant. Centralize your employee file management with HR document storage software and start focusing on recruiting and retaining the top talent today!

Questions You’ve Asked Us About HR Document Management Software (DMS)

How much does a DMS for HR cost?
The cost of DMS for HR varies depending on multiple factors like the provider, the type of system and features. A DMS with on-premise storage is more expensive than a cloud-based option. On-premise storage consists of a one-time setup fee and a subscription fee that cost about $1,000 per user, while cloud-based systems charge a monthly subscription between $30 to $250 per month.
Do I need to store employee documents?
Yes, you need to store employee documents to remain compliant with laws and regulations. For example, all hiring records must be saved for one year after the job offer. By using HR document management software to store important information, you’ll avoid any potential legal issues.
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Eddy is the all-in-one HR tool built with you in mind. The robust features and ease of use will benefit your company both inside and outside your HR team.

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