Digital personnel file (with tips for implementation)

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Digital personnel file with tips for implementation

This guide shows why switching to digital personnel files is the key to compliance, cost reduction and an HR department that creates strategic added value. We describe the legal basis and name best practices for the introduction.

The digital personnel file has now become a strategic necessity for modern, resilient and legally compliant HR management. The main drivers for this development are the need to reduce costs and increase efficiency, improved data security and legal requirements, in particular the digitization obligation for certain remuneration documents that will apply from 2027.

It is also the basis for flexible working models such as working from home and the transformation of the HR department from a purely administrative function to a strategic partner of the company.

Definition and structure: What exactly is a digital personnel file?

A digital personnel file is the electronic equivalent of the traditional paper file. It is used for the central, digital storage and management of all employee-related documents and data. However, it is much more than just a scan archive. Modern systems are active management platforms that are often integrated into higher-level HR software or a document management system (DMS) and enable automated processes.

How does the digital personnel file differ from the traditional paper file?

The fundamental differences define the added value of the digital solution. While the paper file is tied to a physical location and can only be viewed by one person at a time, the digital personnel file enables simultaneous access for multiple authorized users from any location. Instead of tedious manual browsing through folders, there are powerful search functions that make information available in seconds. Automated workflows replace the physical circulation of folders and documents. Most importantly, the questionable security of an office filing cabinet is replaced by robust, auditable security mechanisms such as encryption and detailed access controls.

Illustration: Digital personnel file infographic: Definition, advantages, contents

Which documents belong in the file – and which are taboo?

Keeping a personnel file is subject to strict legal requirements, particularly with regard to data protection. Only information that is necessary for the establishment, performance or termination of the employment relationship may be stored.

Permitted contents of the digital personnel file:

• Master data: Name, address, date of birth, contact details, bank details, nationality.
  Contractual documents: employment contract including all amendments, additional agreements (e.g. regarding company car, home office), promotion letters, termination letters, termination agreements, references.
• Application documents: Cover letter, CV, relevant references and certificates.
  Wage and tax data: Pay slips, income tax card, social security number, proof of social security liability.
• Performance and development data: Minutes of employee appraisals, performance appraisals, target agreements, evidence of training and development, warnings.
• Absence data: Vacation requests and approvals, certificates of incapacity for work (important: without stating the diagnosis).
• Legally required digital documents (from 2027): These include health insurance membership certificates and proof of exemption from social security contributions.

Inadmissible content (taboos):

• Private information: Details of hobbies, political views, religious affiliation (exception: church tax), private profiles on social media or private correspondence.
• Health data: Detailed diagnoses, general medical reports (unless required by law for the job), psychological reports.
• Other: Information about trade union membership or candidacy for the works council. Informal notes from managers, so-called “shadow files”, are also inadmissible.Wie sollte eine digitale Personalakte strukturiert sein?

A tried and tested method is to organize them in a logical tab structure, which is reminiscent of the familiar dividers in a physical folder and thus enables intuitive operation. A typical and effective structure includes main tabs such as:

1. Personal details & master data
2. Contract documents
3. Remuneration & social security
4. Performance & development
5. General correspondence & miscellaneous

Within these tabs, each document is filed individually and tagged with metadata. This metadata (e.g. document type, creation date, personnel number, validity date) is the key to the full performance of the system. They not only enable fast, filtered searches (e.g. “Show all employment contracts that expire in the next three months”), but also form the basis for automated workflows and reminder functions.

What is the difference between scanned and original digital documents?

This difference is fundamental to understanding process optimization.

Scanned documents are digital images of paper documents. In order to make their content readable and searchable for the system, text recognition (Optical Character Recognition, OCR) is absolutely essential. Without OCR, a scan is no more than a digital photo and offers little added value compared to paper.

Original digital documents are created electronically from the outset, e.g. an employment contract saved as a PDF, an e-mail or a system-generated payslip. They are inherently data-rich and searchable.

Scanning is a necessary transitional step in order to digitize old documents. However, the strategic goal must be to maximize the proportion of original digital documents. This is achieved by integrating the digital personnel file with other HR systems. If, for example, the applicant management system automatically transfers the digital application documents to the personnel file when a candidate is hired or the payroll accounting system sends the pay slip directly in digital form, the error-prone and costly scanning process is completely eliminated.

Why is the digital personnel file now a strategic must?

Companies’ HR departments are undergoing fundamental change. Driven by digitalization and new working models, they are evolving from a primarily administrative area into a strategic business partner that makes a significant contribution to the company’s success. In this context, digital tools are no longer just a means of increasing efficiency, but the indispensable basis for data-supported decisions, talent analyses and the creation of a positive employee experience. The COVID-19 pandemic has massively accelerated this change, exposed the weaknesses of paper-based processes and established flexible working models such as the home office as an integral part of the working world.

The digital personnel file is more than just another tool; it is the foundation of this transformation. It creates the central and structured data basis without which advanced HR functions such as strategic personnel planning, predictive analyses in talent management or AI-supported processes would not be possible. The switch from paper to digital is therefore the first, decisive step in making HR work fit for the future and unlocking its strategic value within the company.

How widespread are digital personnel files really in German companies?

Although the advantages are obvious, the digitalization of office and administrative processes in Germany presents a heterogeneous picture. According to a Bitkom study from 2024, 96% of companies are generally open to digitalization and 15% already work completely paperless – a significant increase compared to 8% two years earlier. Nevertheless, there is a considerable gap between aspiration and reality.

An earlier Bitkom study from 2019 found that only 30% of German companies used document management software specifically in HR. Current data shows that while 84% of companies use enterprise content management (ECM) systems in general, targeted digitalization in the HR sector, particularly in German SMEs, is still lagging behind. A noticeable “digitalization gap” has formed between large companies and SMEs. While large companies are clearly in the lead with a Digital Office Index score of 67 points, the average score for all companies is just 55 points. This discrepancy illustrates the immense potential for catching up, but also the growing competitive risk for small and medium-sized enterprises (SMEs).

There are many reasons for this gap. Large companies often have the necessary financial resources and specialized IT departments to implement complex systems. SMEs, on the other hand, often perceive such projects as too costly and time-consuming. However, this perception fails to recognize that modern, scalable cloud solutions (Software-as-a-Service, SaaS) make technology more accessible and affordable today than ever before and are specifically tailored to the needs of SMEs.

How much does sticking to paper files actually cost your company?

The cost of maintaining paper-based personnel files is far higher than the pure expense of paper and printers would suggest. These are massive, often hidden costs that undermine a company’s productivity, security and ultimately its competitiveness.

Research firm Gartner estimates that companies spend 1 to 3 percent of their turnover on printing, not even including storage and administration costs. The indirect costs of wasted time are far more serious. A study conducted by the Fraunhofer Institute in 2018 found that employees spend between 20 and 60 minutes a day on document-related tasks such as searching and filing. An IDC white paper from 2012 puts the productivity loss caused by dealing with paper documents at 21.3 percent. For a company with 1,000 employees, this is equivalent to the cost of hiring 213 additional workers.

There are also security risks: paper files are inherently insecure. They are vulnerable to unauthorized access, theft, fire and water damage. A US government report attributed 62 percent of data breaches in large companies to paper documents. Ensuring confidentiality and complete logging of access is almost impossible to achieve with physical files.

Bureaucratic obligations, most of which are paper-based, represent a considerable burden, particularly for industrial SMEs. A study conducted by the IMPULS Foundation in 2025 shows that these costs can amount to over 6% of turnover for small companies; an unsustainable figure for many businesses.

The cost of inaction is therefore an ongoing and accumulating operational burden that far outweighs the one-off investment in digitalization. Decision makers need to quantify the daily “tax” of inefficiencies created by outdated processes. By converting lost time into personnel costs, the investment in a digital personnel file is re-evaluated not as a future expense, but as an immediate and necessary cost-cutting measure.

The advantages: What specific added value does the digital personnel file create?

The introduction of a digital personnel file goes far beyond simply modernizing the filing system. It generates measurable and diverse added value for the HR department, employees and the entire company.

How are time and costs saved?

The savings are both direct and indirect and add up to a considerable economic advantage. The administrative effort for routine tasks such as searching, filing, copying and distributing documents is drastically reduced. At the same time, material costs for paper, folders, printers and toner as well as rental costs for physical archive rooms are eliminated. Another item is postage costs, which can be completely eliminated through the digital delivery of documents such as payslips.

The capacity thus freed up in the HR department can be redirected from administrative, non-value-adding activities to strategic tasks such as recruiting, personnel development and employee retention, which directly increases the value of the company.

How is location-independent and secure access guaranteed?

The digital personnel file is an important prerequisite for modern and flexible working models. It enables authorized users to securely access necessary information from any location and with any end device; a basic requirement for working from home, mobile working and the management of decentralized teams. Paradoxically, security is significantly higher than with a physical filing cabinet. Robust, multi-level access concepts, end-to-end encryption and seamless audit trails that log every access create a level of security that is unattainable with paper files.

How does data organization and search improve?

The digital personnel file establishes a central data source, a so-called “single source of truth”. This eliminates redundant data storage, contradictory information in different departmental silos and the associated high susceptibility to errors. By combining full-text search and intelligent metadata filtering, users can find the documents or specific information they need within seconds. Instead of keeping manual lists, the system can automatically remind users of important deadlines, such as the end of a probationary period, the expiry of a fixed-term contract or the need for follow-up training.

How do employees benefit directly from the digital personnel file?

The benefits for the workforce are a key aspect and contribute significantly to the acceptance and success of the system.

• Transparency and self-determination: Employee self-service portals (ESS) give employees direct access to their own documents such as payslips, their employment contract or the current status of their vacation account at any time. This transparency strengthens trust in the company and promotes personal responsibility.
• Accelerated processes: Employees benefit directly from more efficient processes. A digitally submitted leave request can be approved within minutes instead of spending days going through various departments as a paper form.
• Increased data quality: By allowing employees to view their own data, they have the opportunity to point out errors or outdated information and initiate corrections. This leads to a significant increase in the quality and timeliness of personnel data.
• Modern communication: The system serves as a secure and traceable channel for the exchange of documents, for example in the case of contract amendments, which can be acknowledged or signed digitally.

The introduction of a digital personnel file is therefore a strong signal for a modern, transparent and employee-oriented corporate culture. It is an effective tool for improving the employee experience, which is a decisive factor in the competition for the best talent. Modern employees expect digital and uncomplicated processes. A company that relies on modern tools here positions itself as an attractive employer.

What contribution does the digital file make to compliance and traceability?

The digital personnel file is an important tool for ensuring compliance. It facilitates compliance with the strict requirements of the General Data Protection Regulation (GDPR) through the technical implementation of access controls and the complete documentation of all data processing procedures. It supports audit-proof archiving in accordance with the principles for the proper management and storage of books, records and documents in electronic form and for data access (GoBD). By automating the management of retention and deletion periods, the risk of compliance violations and the associated fines is minimized. Every single process, from the retrieval of a document to its deletion, is logged unalterably. This audit trail is invaluable in the event of company audits or legal disputes.

Technical basics: What technological decisions need to be made?

The decision to adopt a digital personnel file is also a technological decision. Choosing the right operating model and ensuring system integration are crucial for the long-term success and scalability of the solution.

Cloud or on-premises: Which model is right for your business?

Possible options are a cloud solution, which is hosted by the provider, and an on-premises solution, which is installed on the company’s own servers.

When using a cloud (Software-as-a-Service, SaaS), the software is used via the internet and is usually billed per user and month. This has various advantages, such as lower initial investment, as there is no need to purchase your own hardware. Another advantage is the high scalability, as licenses can be flexibly added or reduced. Location-independent access is inherent in the system. Maintenance, security and updates are handled by the provider, which relieves the burden on your own IT department.

The disadvantages of a cloud solution include less control over the physical storage location of the data, potentially limited options for in-depth customization and recurring subscription costs.

On-premises, on the other hand, means that the software is operated on the company’s own server infrastructure. The advantages include complete control over data, security and system configuration and extensive customization options for very specific company processes. After a high initial investment, there are potentially lower running costs for very large companies.

The main disadvantages are high initial investment costs for licenses and server hardware. The entire responsibility for maintenance, updates and security lies with your own IT department. Remote access requires additional, complex infrastructure such as VPNs.

The trend is clearly moving in the direction of cloud solutions, especially for SMEs. They significantly lower the barriers to entry and meet the requirements of modern, flexible working environments. The increasing prevalence of remote working makes simple, location-independent access a priority, which is a core feature of cloud systems. The shortage of IT specialists also makes outsourcing maintenance and security to a specialist provider an attractive option.

On-premises solutions are now a niche choice for organizations with extreme security requirements (e.g. in the defence or high-security sectors), very specific integration and customization needs and the IT resources to run them.

Table: Cloud vs. on-premises – a strategic comparison

What role do encryption, access rights and user management play?

Data must be encrypted using state-of-the-art technology both during transmission over the network (“in transit”) and during storage on the server (“at rest”) in order to protect it from unauthorized access.

A finely granular, role-based authorization concept (Role-Based Access Control, RBAC) is absolutely essential. It ensures that each user can only see the data and perform the actions that are absolutely necessary for their specific role and task. This “need-to-know” principle is a core requirement of Article 32 of the GDPR.

Legal framework

The introduction of a digital personnel file takes place in a strictly regulated legal environment. Compliance with data protection laws, the principles of proper accounting and co-determination rights is not optional, but critical to success.

What are the requirements of the GDPR and BDSG for the processing of personnel data?

The General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG) form the central legal framework.

The processing of personal data is generally prohibited unless there is an explicit legal basis (Art. 6 GDPR). In the employment context, the most important legal basis is Section 26 BDSG, which permits processing if it is necessary for the establishment, performance or termination of the employment relationship.

Obtaining consent from employees is possible, but legally tricky in the employment relationship because the voluntary nature is often called into question due to the relationship of dependency. The argument of necessity in accordance with Section 26 BDSG is therefore the more solid legal basis in most cases. Consent is typically only required for data processing that goes beyond what is necessary for the employment relationship.

Employees have far-reaching rights that the system must reflect technically and procedurally. These include the right to information about the stored data (in accordance with Section 83 BetrVG also the right to inspect the file), the right to rectification of incorrect data, the right to erasure (“right to be forgotten”) and the right to data portability.

Article 32 of the GDPR requires “appropriate technical and organizational measures” (TOMs) to protect the data. These explicitly include encryption, access controls and ensuring the confidentiality, integrity and availability of systems.

What does “audit security” according to GoBD mean in detail?

Audit security is a term used in commercial and tax law and is specified by the principles for the proper keeping and storage of books, records and documents in electronic form and for data access (GoBD). It ensures that digital documents are recognized as conclusive over the entire retention period. A digital personnel file must meet these requirements.

The core principles of audit compliance are

• Immutability: Once a document has been archived, it must not be possible to change it unnoticed. Every subsequent change must be saved as a new version, whereby the original version is retained and the entire process is logged without gaps. The PDF/A file format is a recognized standard for this.
• Traceability and logging: Every action performed on a document (capture, indexing, viewing, modification, deletion) must be logged with a time stamp and the identity of the user.
• Completeness: It must be ensured that no document can be lost on the way to the archive or in the archive itself.
• Order: Filing must be carried out according to a comprehensible, systematic principle.
• Retrievability: Every document must be retrievable and legible at all times throughout the entire retention period.

Audit compliance is not just a software feature. It is the result of a combination of the right technology and clearly defined, documented organizational processes. Without comprehensive procedural documentation that describes the entire life cycle of a document, even the best software cannot ensure audit compliance.

Which retention periods apply and how do you implement a deletion concept?

Companies are subject to a large number of statutory retention periods, which vary depending on the type of document. At the same time, the GDPR requires that data must be deleted as soon as the purpose for its storage no longer applies. This area of conflict requires intelligent management.

Typical retention periods are

• 10 years: For tax-relevant wage and salary documents (Section 147 AO).
• 6 years: For commercial and business letters, which may also include parts of employment contract correspondence (§ 257 HGB).
• 3 years: For most general documents after termination of the employment relationship, based on the regular limitation period for claims (§ 195 BGB).
• Up to 30 years: For documents relating to company pension schemes (§ 18a BetrAVG).
• 6 months: For application documents of rejected candidates (due to deadlines of the AGG).

A deletion concept is a mandatory requirement of the GDPR. A systematic, documented process must be in place to ensure that data is securely and irretrievably deleted after the respective retention period has expired. Modern systems for digital personnel files can significantly support this process by automatically monitoring deadlines and marking documents ready for deletion.

What role does the works council play and how can cooperation be structured constructively?

The works council has a strong right of co-determination in the introduction of a digital personnel file. Pursuant to Section 87 (1) No. 6 BetrVG, the introduction and use of technical equipment intended to monitor the behavior or performance of employees is subject to mandatory co-determination. A digital personnel file generally falls under this definition.

Its introduction is therefore not possible without the consent of the works council. This consent is usually formalized in a works agreement. This agreement regulates in detail aspects such as the purpose of the system, the data recorded, the exact access rights for different roles, the data protection measures, the retention and deletion periods and the modalities of the employees’ right of inspection.

The early and transparent involvement of the works council is not a legal obstacle, but a decisive success factor. A collaborative approach, in which the works council is involved in the selection of software and the design of processes, creates trust and ensures acceptance among the workforce. A works council that has helped shape the system is more likely to support it and defend it to employees, which makes the entire change process much easier.

Why is comprehensive procedural documentation essential?

The procedural documentation is the written set of rules that describes the entire process of digital file management – from the capture of a document to its processing and archiving through to its final deletion. It is the formal proof to auditors (tax office, social security, data protection authorities) that the company meets the requirements of the GoBD and GDPR. It documents who does what, when and how with the data and is therefore the central compliance document for digital HR management.

How does the switch to digital personnel files work in practice?

The introduction of a digital personnel file offers the ideal opportunity to carry out a comprehensive “data inventory”. Existing files must be cleansed of all inadmissible information before digitization. This is not only a technical task, but above all a procedural and cultural one. The company must establish a clear policy for a “single source of truth” and explicitly prohibit the keeping of separate, unauthorized files – whether digital or on paper.

A successful introduction of the digital personnel file is not just an IT project, but a comprehensive change process that requires careful planning, clear processes and open communication.

How do you digitize old paper files – internally or with a service provider?

Digitizing old paper files is often one of the biggest hurdles. There are two basic approaches:

Internal digitization

This option is conceivable for companies with a manageable number of files. However, it requires not just a simple office scanner, but professional document scanners with automatic text recognition (OCR) to create searchable files. In addition, the personnel entrusted with scanning must be carefully trained and bound to confidentiality. If you offset the internal personnel costs, this option can quickly become more expensive than hiring a service provider.

External scanning service provider

For larger volumes of files, commissioning an external and specialized service provider is usually the faster, more secure and more cost-efficient solution. Professional service providers offer a complete service that includes the secure transportation of files, preparation (removal of staples etc.), high-quality scanning, indexing according to predefined criteria and the subsequent data protection-compliant destruction or storage of the paper originals.

A pragmatic approach for SMEs can be a “scanning on demand” strategy. Instead of a large initial project, only the files of active employees are initially digitized. Files of former employees are only scanned when access is required. This spreads the costs and effort over a longer period of time and makes the project more manageable. It is crucial to consistently prevent the creation of new paper documents from the start of the new system.

How do you design an effective role and authorization concept?

The role and authorization concept is the technical core of data protection and process control. It is based on the “need-to-know” principle: each user may only see and do what is absolutely necessary for their task. It is usually set up in two steps:

1. Definition of roles: First, the various user groups in the company are identified. Typical roles are, for example: HR clerk, payroll clerk, manager, employee (for self-service access), managing director, works council.
2. Assignment of authorizations: Specific rights are assigned to each role. These rights define which document types or which employee groups a role may access and which actions (read, write, change, delete, download) are permitted.

Example of a role concept:

• Manager: May view the files of their own direct reports. Read access to contract data, appraisals and target agreements. No access to salary data or private master data.
• Payroll accountant: May access payroll-related data (salary, tax class, bank details, social security number) of all employees. No access to performance appraisals or application documents.
• Employee: May only view their own file (read access). Can upload certain documents (e.g. change of address, sick note) themselves.

This concept must be recorded in writing in the procedural documentation and regularly reviewed and adapted, especially in the event of personnel changes.

How do you successfully communicate the introduction to employees?

Communication is a critical success factor for creating acceptance and reducing resistance.

Communicate not only the “what” and ‘how’, but above all the “why”. Focus on the benefits for employees, such as greater transparency, faster processes or easier access to their own data, not just the efficiency gains for the company.

Involve key people such as managers, the works council and future power users from the HR department in the process right from the start. Their support is essential for success.

Offer targeted training to show employees how the new system will make their day-to-day work easier. Dry lists of functions are less effective than practical application examples.

Set up clear points of contact for questions and problems, both during the introduction phase and during ongoing operations.

What legal obligation to digitalize will companies face from 2027?

The transitional period of the Contribution Procedure Ordinance (BVV) ends on January 1, 2027. From this date, all employers in Germany are obliged to keep certain pay-related documents in electronic form and to keep them available for audits by the social insurance institutions. These include proof of nationality, certificates of compulsory insurance or exemption from compulsory insurance in the individual social security branches and documents relating to employee postings.

This legal requirement is not an option, but a binding obligation. Companies that do not comply with this risk severe sanctions during tax audits. The approaching deadline should be used as a key argument to secure the necessary budgets and resources for the “digital personnel file” project. The message to the decision-making level is clear: some digitization is unavoidable anyway. It makes far more strategic and economic sense to introduce a holistic, integrated system now, rather than creating a fragmented hybrid system of paper and individual digital documents, which would be far more complex and expensive to manage and integrate later.

How can AI support the digital personnel file?

Künstliche Intelligenz (KI) entwickelt sich zu einer transformativen Kraft im Personalwesen. Unternehmen, die heute über eine saubere, strukturierte und vollständige digitale Datengrundlage verfügen, werden die ersten sein, die von den enormen Potenzialen der KI profitieren können.

What automation options does AI already offer today?

AI is already capable of automating far more than just simple tasks. Its capabilities go beyond mere process acceleration and enable a new level of data analysis and utilization.

AI systems can automatically analyse incoming documents (e.g. via email attachment or scan), recognize the document type (e.g. certificate of incapacity for work, contract amendment) and suggest the correct assignment to the respective personnel file and the appropriate register.

One of the most effective applications is “CV parsing”. Here, the AI reads unstructured documents such as CVs or certificates and extracts relevant information (e.g. qualifications, professional experience, language skills) to automatically transfer them to structured data fields in the HR system. This saves an enormous amount of manual data entry and creates a searchable skills database.

AI enables a semantic search that not only searches for exact keywords, but also for content-related concepts. This allows HR managers to launch complex queries such as “Find all employees who have experience in project management method X and speak business fluent Spanish”. By analyzing the entire personnel data, trends such as impending skills gaps or an increased risk of churn in certain departments can also be identified at an early stage.

Based on the extracted data, the AI can actively initiate processes. For example, if it detects the end date of a fixed-term contract, it can automatically create a resubmission for the responsible manager and initiate the process to extend or terminate the contract.

Costs and profitability: is the investment worthwhile?

The decision to introduce a digital personnel file is an investment decision that can be justified from a business perspective. A comparison of the one-off and ongoing costs with the quantifiable savings and strategic benefits usually shows a clear and rapid return on investment (ROI).
What are the costs of introducing a digital personnel file?

The total costs are made up of one-off investment costs and ongoing operating costs.

One-off investment costs:

• Software and implementation: this includes license fees for purchase models or one-off set-up fees for cloud solutions. There are also costs for consulting services that cover project management, process analysis and the technical configuration of the system.
• Digitization of old files: The cost of scanning existing paper files, either by an external service provider or by internal staff.
• Training: The cost of training HR staff and managers in the use of the new system.
• Internal resources: The personnel costs for the time that in-house employees from HR, IT and other departments invest in the project.

Ongoing operating costs:

Software fees: Monthly or annual subscription fees for cloud/SaaS models or annual maintenance and support contracts for on-premises solutions.
Infrastructure costs: On-premises solutions incur costs for operating the servers (electricity, cooling, maintenance).

Possible savings through the digital personnel file

The first thing to mention here is the direct, measurable cost reductions. The biggest lever is the reduction in administrative time. This can be calculated by multiplying the working hours saved by the average hourly rate of the employees concerned. Added to this are the direct savings in material costs (paper, printer), postage costs and rent for archive space.

Qualitative and strategic gains are more difficult to quantify in euros, but are often of even greater value. These include improved legal compliance, the avoidance of fines, a better database for strategic decisions, higher employee satisfaction and lower staff turnover.

Provider in focus: The Papershift solution

Papershift offers the digital personnel file as an integral part of a comprehensive, cloud-based HR platform.

What specific functions and modules does Papershift offer for the digital personnel file?

Papershift’s digital personnel file serves as a central and secure storage location for all essential employee documents. This includes personal information, employment contracts, documentation of absences, training certificates and payslips. As a cloud solution, it ensures secure and location-independent access, which is ideal for companies with hybrid or decentralized working models. One key feature is an intuitive user interface that can be operated quickly and effectively even by users without in-depth technical knowledge.

How does Papershift support time recording, shift planning and payroll accounting?

The particular strength of Papershift lies in the seamless integration of the various HR modules. The digital personnel file acts as the data-bearing core here, connecting the other functions with each other and supplying them with information.

• Time recording: Papershift offers legally compliant digital recording of working hours via various end devices (smartphone, tablet, PC). The data is synchronized in real time and stored in the employee’s personnel file. The system automatically creates overviews of overtime and break times.
• Duty planning: The module for duty and shift planning accesses the data stored in the personnel file, such as working time models and qualifications, as well as employees’ absences and availabilities recorded live. This enables intelligent and efficient personnel planning.
• Payroll accounting: The system links the data from time recording directly with payroll accounting. Wages and salaries can be calculated automatically on the basis of the precisely documented working hours and absences, which drastically reduces the susceptibility to errors and minimizes the administrative effort.
• Absence management: requests for leave or other absences are submitted digitally, run through a flexibly definable approval workflow and, once approved, are automatically taken into account in the personnel file, time recording and duty scheduling.
• Papershift Pulse: This module extends the functionality beyond pure administration and acts as a digital HR assistant. It supports the documentation of employee appraisals, the tracking of target agreements and the digitalization of feedback processes, whereby all relevant documents are stored directly in the personnel file.

This integrated approach illustrates how the digital personnel file can be transformed from a passive archive into an active hub that links all core operational HR processes – from clocking in to payroll – to create maximum efficiency and an end-to-end digital workflow.

FAQ

Is the digital personnel file mandatory in Germany?

No, there is no general obligation to keep a digital personnel file. However, from January 1, 2027, certain remuneration documents must be kept digitally for social security audits, which makes the introduction de facto necessary for all companies.

What are the three biggest advantages of a digital personnel file?

The biggest advantages are massive time and cost savings through increased efficiency, increased data security and compliance as well as enabling location-independent working and modern HR processes.

How secure is my employee data in the cloud?

With reputable providers with server locations in the EU, data is often more secure than in your own company. Measures such as encryption, strict access controls and professional security management offer a very high level of protection that meets the GDPR requirements.

Does the works council have to approve the introduction?

Yes, the introduction of a digital personnel file is subject to co-determination in accordance with Section 87 (1) No. 6 BetrVG. Implementation without the consent of the works council is not possible and is usually regulated by a works agreement.

What is the approximate cost of introducing a digital personnel file?

The costs vary greatly depending on the size of the company, the provider and the scope of the services (e.g. scanning). Cloud solutions for SMEs are already available for moderate monthly amounts per employee, while implementation projects can incur one-off costs in the four- to five-figure range.

How long does the changeover take?

The technical implementation of cloud software can often be completed in just a few weeks. The biggest time factor is usually the internal preparation, process definition and digitization of the old files, which can take several months depending on the scope.

Can we destroy the old paper files after digitization?

Yes, most documents may be destroyed after a GoBD-compliant scanning process. Exceptions to this are documents of a documentary nature or those that require a legally prescribed written form (e.g. letters of termination, employment contracts), which should continue to be kept in the original.

What is the difference between GDPR and GoBD?

The GDPR regulates the general protection of personal data and the rights of data subjects. The GoBD is an administrative regulation of the Ministry of Finance that defines the requirements for proper (digital) bookkeeping and archiving of tax-relevant documents in order to ensure their probative value.

How do normal employees benefit from the digital file?

Employees benefit from greater transparency and personal responsibility, as they can access their own data and documents at any time via self-service portals. In addition, administrative processes such as vacation requests or sick notes are significantly accelerated and simplified.

Can we manage such a project with a small HR team?

Yes, the introduction makes sense for small teams in particular, as they benefit the most from the administrative relief. Modern cloud solutions and support from external service providers (e.g. for scanning) make the introduction absolutely feasible even for companies without a large IT or HR department.