In this day and age, the benefits of a paperless payroll system exceed the disadvantages. In terms of convenience, speed, efficiency, and affordability for both businesses and employees, paperless HRMS are very useful. However, it is worthwhile to weigh the benefits and drawbacks of selecting the best system for your company.

Here are some of the pros and cons of paperless human resource software.


  • Convenience

Paperless paychecks, time cards, timesheets, and other transactions provide a more simplified, time-saving payroll processing method. Issuing paperless HRMS is an efficient and secure method of paying employees. Employees, for example, generally have same-day access to their wages through direct deposit programmes, may save trips to the bank to deposit or cash their paychecks, and don’t have to worry about lost or stolen checks. They may also access payroll-related information, such as work hours and time off balances, via employee self-service portals available 24 hours a day, seven days a week.

  • Cost of the HRMS

Payment is a costly procedure. Employers pay $3 for each printed check, per employee, according to the National Federation of Independent Business (NFIB), a non-profit small-business group. Additionally, lost productivity caused by employees leaving work to deposit or cash their paychecks costs companies $2 per employee. These statistics add up to considerable savings when multiplied by a dozen or more staff.

  • Accuracy

According to reports, paperless human resource software generates much fewer mistakes than those done by people. For recordkeeping compliance purposes, all data mistakes should be rectified as soon as they are detected. Documents containing mistakes in paper-generating systems, on the other hand, must be rectified and reprinted.

  • Sustainable

Paperless solutions are better for the environment since there is no paper to throw away, recycle, or build up in landfills. According to the United States Environmental Protection Agency (EPA), Americans consume 69 million tonnes of paper every year, accounting for 40% of the country’s solid trash.

  • Storage Of Paperless Human Resource Software

Paperless HRMS and data do not require any physical space. Furthermore, cloud-based systems reduce the requirement for electronic data to be stored on hard drives. Electronic files may withstand a natural or man-made disaster or another emergency when backed up at an off-site location or a cloud platform, which is a crucial benefit for any company.

  • Competitive

Digitisation aims to make companies more productive, cost-effective, and competitive today and in the future. Experts foresee technological trouble in which innovation replaces established modes of operation, and artificial intelligence and robots create the need for new skills and approaches for the future of work. Organisations must prepare for these developments, which might ultimately replace much of the paper reliance anticipated by computers in previous decades.


  • Paystub Laws

Under some state regulations, companies must keep a pay stub printing option even if they convert to electronic systems. Companies that operate in various states must also comply with different regulations and produce physical copies of documents and transactions when authorities require them.

  • Direct Deposit Delays

Electronic pay transfers may be delayed in nonbank financial organisations such as credit unions on weekends and holidays.

  • Pay Card Fees

Employees must have a bank or savings account to participate in direct deposit schemes. As a paperless alternative, some businesses provide employees with pay card systems that deposit their pay onto debit cards that may be used similarly to bank accounts. Employee fees, on the other hand, might be exorbitant, considerably reducing their profits.

These are some of the pros and cons of using paperless human resource software. Keep all factors in mind before planning to have one for your company.