[Poland] HR digitalization and ESG – how the e-file supports the sustainable development strategy

Sustainability is becoming a key element of companies’ business strategies.  More and more organizations are looking for innovative solutions to support their ESG (Environmental, Social, Governance) goals. The digitization of HR processes, including the implementation of an employee e-file, plays an important role in this context. Thanks to digitization, companies can not only optimize human resource management, but also significantly reduce their environmental impact, increase employee satisfaction and support management functions.   

In the following article, we will present how HR digitization affects the implementation of sustainable development goals, the efficiency of the organization and what are the benefits of implementing an employee e-file in the daily functioning of HR departments. 

Sustainable development of enterprises. What is ESG?

ESG stands for Environmental, Social and Governance, which are 3 areas that reflect the impact and commitment of an organization to sustainability-related issues.   

ESG reporting is becoming not only a regulatory obligation, but also a strategic tool for companies. By implementing ESG strategies, companies can gain a competitive advantage by building trust among investors and customers. These activities are increasingly taken into account when assessing the credibility of business partners and in tender processes. 

CSRD-compliant ESG reporting – a new obligation for companies

ESG reporting in accordance with the EU CSRD is a new obligation for companies that introduces significant changes to the disclosure of sustainability information. The Sustainability Reporting Directive (CSRD), which came into force on January 5, 2023, aims to modernize and strengthen the rules for corporate reporting of social and environmental information.  

The new ESG regulations oblige companies to:

• Reporting their environmental, social and governance impacts to a uniform standard  

• Reducing environmental impact  

• Promoting responsible social and governance solutions and practices 

Learn more about ESG reporting: ESG – sustainability advisory services | Crowe Poland 

What is an employee e-file?

The employee e-file is a central, electronic database of employee documents that improves the automation of HR and payroll processes. It contains, intera alia, employment contracts, annexes, leave requests, earnings certificates or working time records. It may also include insurance and tax documentation or documentation related to the Employee Capital Plans (PPK). An undoubted advantage of the electronic file is also the facilitation of the process of storage, access from anywhere and management of HR information in accordance with the applicable labour law and personal data protection regulations. 

What documents are included in the employee e-file?

• Section A – documents related to employee recruitment   

• Section B – documents related to the establishment of the employment relationship and the course of employment   

• Section C – documents related to termination of employment   

• Section D – documents related to the employee’s disciplinary liability and liability specified in separate regulations  

• Section E – documents related to the employee’s sobriety test or control for the presence of substances acting similarly to alcohol in his/her body  

The practical application of the e-file in the HR area includes:  

• Efficient data management  

• Planning  

• Decision-making  

• Employee development  

• Strategic process management  

• Planning of real budget reserves  

• ESG reporting 

Read more about the e-file and its functionalities: Employee e-file – the digitalisation of HR processes – Contract Administration 

How does the employee e-file support the ESG strategy?  

An electronic briefcase can be an essential part of an ESG strategy, supporting sustainable development by:  

• Reduction of environmental impact (paper elimination, energy saving).  

• Improving employee well-being and satisfaction (better access to data, greater transparency).  

• Strengthening corporate governance (compliance with regulations, improving efficiency and risk management).  

Employers who focus on the digitization of their HR departments not only adapt to legal and market requirements, but also actively support sustainable development goals (ESG). The employee e-file plays a key role in achieving these goals. 

Electronic employee file and ESG:

E – Environmental Benefits:

• Resource-saving: less resources and effort to administer, organize and keep track of paper files  

• Reduction in paper consumption: Companies that use an employee e-file in their daily operations see a significant reduction in paper consumption, which in turn leads to a reduction in unnecessary costs  

• Reducing the carbon footprint: Digitizing employee records reduces the need to transport documents and the energy needed to maintain archives.  

S – Social Benefits:

• Better and easier access to information: Documents such as employment contracts, personal questionnaires, as well as the possibility of submitting applications or verification of leave limits are facilitations that significantly affect the comfort of people employed in companies that use the employee e-file  

• Increased flexibility and greater comfort at work: employee self-service, access to documents and data online supports remote and hybrid work  

• Data security: It is also worth mentioning that the employee e-file is compliant with the provisions of the GDPR, and employee data is properly secured with metadata, thanks to the use of the so-called log report 

G – Management Benefits: 

• Increase operational efficiency: Automate document management, fully transparent processes  

• Regulatory compliance: In the context of risk mitigation, the e-file plays a vital role in identifying and minimizing risks associated with records management, through process automation, backup storage, and permissions management   

• Streamline audits and controls: Organize and search documents more easily 

Employee e-file and access to ESG data

The e-file can be an important tool to support organizations in achieving their ESG goals by making HR data easier and enabling its effective use in sustainability analyses. It helps to collect information necessary for ESG reporting, audits or inspections.   

The data that the e-file extracts in the ESG area includes, among others:

• Gender structure by position/department  

• Age diversity  

• Accidents at work   

• Mandatory training, distinguishing data such as the number of employees trained or the total training conducted   

• Available leave limits for employees 

Employee e-file and ESG  

Watch the recording of our speech   

Staff Congress 2024 

E-file in practice – case study

Our client, Volkswagen Group Services, which decided to implement an employee e-file, noticed significant benefits that had a positive impact on the achievement of ESG goals. The digitization of HR processes has allowed the company to reduce the time to perform selected HR tasks by up to 94%.   

The most important, measurable results of the implementation of the e-file at our client’s site are, among others:

• Reduction of paper consumption thanks to reduced printing of employee requests and documents (40% time savings)  

• Fewer documents to scan (75% time savings)  

• Shorter time to verify the correctness of personal questionnaires (33% time savings)  

• More efficient use of management time (50% time savings) 

Employee e-file