Benefits & Disadvantages Of Electronic Signatures For HR Departments

Benefits & Disadvantages Of Electronic Signatures For HR Departments

Using an electronic signature solution enables HR teams to streamline their internal processes during the hiring of new employees. Moreover, a company that simplifies this process with such a tool distinguishes itself from others by embracing technology, which is crucial in today’s competitive landscape for attracting top digital talent.

By leveraging an electronic signature solution, HR departments enjoy the following benefits:

1. Making your company tech-savvy

Using electronic signatures leaves a positive impact on potential new employees, especially since a large portion of today’s workforce, known as Generation Y or Millennials, grew up with technology. They value technology that speeds up processes they find tedious or slow.

2. Shows environmental responsibility

Candidates often choose companies based on how environmentally friendly they are. Using electronic signatures for employment contracts significantly reduces paper use, showing that the employer cares about the environment.

3. Saves time in document management

Using electronic signatures also saves time for HR teams and candidates. With Signaturit, candidates can sign any hiring-related documents like NDAs and employment contracts from anywhere and at any time. For HR teams, having all documents digitally signed and organized reduces the time spent processing and storing paperwork for each hiring process.

This benefit is particularly valuable for temporary staffing agencies, which frequently need quick recruitment processes to hire professionals on short notice, as requested by their clients.

4. Reduces cost

Using electronic signatures in HR departments not only saves time but also cuts down on the steps involved in hiring. In the traditional process, HR would send the contract to the candidate, wait for them to sign it, and then scan and store the document. But with electronic signature, all these steps are condensed into one: sending an email to the candidate. The candidate simply needs to open the email, click to open the document, and sign it electronically.

5. Enables signing of all document types

When the company confirms the final candidate, they often need to gather additional documents like ID photocopies or bank statements from the new employee. Signaturit’s eSignature tool allows the company to request these documents together with the contract signature in the same email, making it simpler to collect all necessary paperwork promptly.

6. Allows to attach documents in the same sending process

After confirming the final candidate, the contract signing usually requires additional documents like ID photocopies or bank statements. With Signaturit’s advanced authentication system, the company can request these documents along with the signature in the same email, simplifying the collection process for all necessary paperwork.

7. Simplifies centralized document administration

Using an electronic signature platform enables HR departments to centralize contract management. The entire history of documents signed by new employees is stored securely in the cloud and can be accessible when needed.

8. Security

Electronic signatures use very strong encryption methods, making it very hard for unauthorized people to fake signatures or change documents without being noticed. This makes electronic communication and transactions more secure overall.

Disadvantages

1. Key management

It’s essential to manage private keys carefully to keep things secure. If a private key gets into the wrong hands, it could lead to unauthorized use of the e-signature.

2. Complication

Setting up and understanding the technical details of e-signatures can be complicated, especially for those who aren’t familiar with cryptography.

3. Dependency

Electronic signatures depend on technology systems, especially for securely storing private keys. Problems with technology or system failures could impact the ability to use e-signatures.

4. Legitimacy in law

Although electronic signatures are accepted as valid in many places by law, certain regions or industries might have their own rules or limitations regarding their use.

5. Initial setup

Setting up e-signature processes involves initial steps, such as acquiring digital certificates and ensuring they work well with various software and systems.

6. Expenses

There are expenses involved in getting digital certificates, setting up secure ways to manage keys, and keeping the technology infrastructure maintained.

7. Reluctance to adapt

Moving from signing papers by hand to using electronic signatures may meet resistance from people or organizations used to the old-fashioned way of doing things.

8. Acceptance by users

Employers or even candidates who are not familiar with electronic signatures may hesitate or feel confused when adopting them.

Conclusion

In general, using electronic signatures offers benefits that often outweigh the drawbacks. However it’s important for organizations and individuals to think about their own needs, resources, and the rules they need to follow before they start using electronic signatures.

Also read: What Is Electronic Signature (E-Signature)?

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