What is a digital personnel file?

Digital personnel files bring order, transparency and speed to your HR processes. Find out how you can efficiently digitise your HR management with SAP and ensure it complies with legal requirements.

Quick start

Quick start

The most important facts in brief

The most important facts in brief

  • Centralised digital storage of all HR documents
  • Quick access to employee data and documents
  • GDPR-compliant and audit-proof documentation
  • Reduced administrative burden thanks to automated processes
  • Can be integrated into existing HR systems such as SAP
  • No general legal requirement for digital personnel files
  • From 2027, certain remuneration records must be available electronically
  • An important component of modern personnel file management and HR digitalisation

Digital personnel files explained simply: benefits, implementation and SAP solutions

Digital personnel files explained simply: benefits, implementation and SAP solutions

The digital personnel file (also known as an electronic personnel file) replaces the traditional paper file. It enables the centralised, secure and structured management of all employee-related documents. Companies benefit from faster processes, greater transparency and significantly more efficient HR management.

Whether employment contracts, salary records, application documents or training certificates – all information is available digitally at all times and can be archived in an audit-proof manner. In conjunction with modern HR solutions such as SAP SuccessFactors HCM, the digital personnel file becomes a key component of HR digitalisation.

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What is a digital personnel file?

What is a digital personnel file?

The digital personnel file is the electronic equivalent of the traditional personnel file.

It is designed to manage all of an employee’s documents and information in a centralised, structured and audit-proof manner. Companies can use it to digitise their personnel files whilst simultaneously increasing the transparency, traceability and efficiency of their HR processes.

As part of a modern digital document management system, the electronic personnel file forms the basis for future-proof personnel management.

Typical contents of a digital personnel file include:

  • Employment contracts and contract amendments
  • Application documents from recruitment systems (taking into account statutory retention and deletion periods)
  • Salary and bonus agreements
  • Sick notes and absences
  • Evidence of further training
  • Performance reviews and target agreements
  • Certificates and supporting documents

Compared to paper files, the digital personnel file offers significantly faster access to information, structured storage and the ability to automate many processes.

With SAP SuccessFactors HCM, you can lay the foundations for a modern and agile HR function. Find out how to implement and use the solution.

What are the benefits of a digital personnel file?

What are the benefits of a digital personnel file?

The introduction of a digital employee file brings numerous benefits for companies and HR departments.

Time savings and efficiency

Documents can be found in a matter of seconds. There is no longer any need for time-consuming searches through folders and archives. At the same time, approval and authorisation processes can be automated.

Greater transparency

All relevant documents are available centrally. Authorised individuals have access to up-to-date information at any time, regardless of their location.

Greater legal certainty

Digital personnel files help companies comply with documentation requirements and manage personal data in accordance with the GDPR. Access can be logged in a traceable manner.

Lower costs

Paper archives, printing costs and manual administrative work are reduced. At the same time, the space required for document storage is reduced.

Support for HR digitalisation

The digital personnel file can be integrated with recruitment, payroll and HR systems, laying the foundation for modern, data-driven HR processes.

Is a digital personnel file mandatory?

Is a digital personnel file mandatory?

At present, there is no general legal requirement in Germany to introduce digital personnel files. Companies may continue to keep their personnel files in paper form, digitally, or in a hybrid format.

Nevertheless, the demands placed on electronic documentation in human resources are increasing.

What will change from 2027?

What will change from 2027?

From 1 January 2027, certain payroll records relevant to audits by the German Pension Insurance Fund must be kept in electronic form. The exemption from keeping these records electronically, which was previously available, will no longer apply.

It is important to note:

  • No general obligation to maintain digital personnel files
  • Increasing obligation to document certain records electronically
  • Higher requirements for traceability and archiving
  • For many companies, the digital personnel file is therefore effectively becoming the norm.

What documents should be included in a digital personnel file?

What documents should be included in a digital personnel file?

The content may vary depending on the company. Typically, the following documents are stored:

  • Employment contracts
  • Contract amendments
  • Payroll records
  • Reference letters
  • Job application documents
  • Holiday and absence records
  • Training certificates
  • Performance agreements
  • Certificates and supporting documents

Not every document may be stored permanently. Companies must observe the applicable data protection, retention and deletion periods.

Is a digital personnel file GDPR-compliant?

Is a digital personnel file GDPR-compliant?

Yes, provided that the legal requirements are met.

These include, in particular:

  • clear access and authorisation policies
  • logging of access
  • compliance with retention periods
  • protection of personal data
  • audit-proof storage

Modern HR software helps companies to implement these requirements from a technical perspective.

Who is authorised to access the digital personnel file?

Who is authorised to access the digital personnel file?

Access to a digital personnel file should be strictly regulated. As a rule, only authorised personnel from the HR department and managers with the appropriate authorisation are granted access to specific documents.

Role-based authorisation models allow you to specify exactly who is permitted to view or edit which information.

How can a digital personnel file be implemented using SAP?

How can a digital personnel file be implemented using SAP?

For many companies, SAP is the central platform for human resources management. The digital personnel file can be seamlessly integrated into existing SAP environments.

Advantages of an SAP-based personnel file:

  • centralised data storage
  • integration with HR processes
  • automated workflows
  • role-based permissions
  • audit-proof document storage

Documents can be linked directly to employee master data. This creates a unified database for personnel administration, reporting and analysis.

Digital personnel file with SAP SuccessFactors

Digital personnel file with SAP SuccessFactors

With Employee Central, SAP SuccessFactors offers the ability to manage HR data and documents centrally in the cloud.

Key features include:

  • digital document storage
  • integration with Employee Central
  • automated HR workflows
  • mobile access
  • location-independent access
  • integration with recruitment and onboarding processes

SAP SuccessFactors is a powerful solution, particularly for companies looking to modernise their HR processes and move them to the cloud.

With SAP SuccessFactors HCM, you can optimise your HR processes end-to-end – from workforce planning and data management to payroll.

Introducing digital personnel files: step by step

Introducing digital personnel files: step by step

A successful implementation typically involves six steps:

1. Define objectives

Which processes are to be digitised? Which documents are to be managed electronically in future?

2. Select software

Compare suitable solutions in terms of functionality, integration, user-friendliness and scalability.

3. Develop a filing structure

Define categories, document types and access control policies.

4. Migrate data

Digitise existing paper files and clean up outdated data sets.

5. Integrate systems

Connect the personnel file with existing HR, recruitment or ERP systems.

6. Train staff

Practical training ensures acceptance and rapid adoption in day-to-day work.

FAQ on digital personnel files

FAQ on digital personnel files

The costs depend on the size of the company, the range of features and the software provider. In addition to licence costs, implementation, migration and training should also be taken into account.

In day-to-day business, the two terms are usually used interchangeably. Both refer to the digital management of HR documents.

The retention period is determined by legal requirements and the type of document in question. Documents must be deleted once the retention periods have expired.

Yes. If there is a works council, it should be involved at an early stage in the introduction of the digital personnel file.

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Conclusion: The digital personnel file as the key to modern HR practices

Conclusion: The digital personnel file as the key to modern HR practices

The digital personnel file is far more than just an electronic version of a paper file. It forms the basis for efficient HR processes, greater transparency, improved compliance and future-proof personnel management.

Particularly when integrated with SAP and SAP SuccessFactors, companies benefit from end-to-end processes, a centralised database and a modern HR platform. Those who digitise their personnel files at an early stage lay the groundwork for greater efficiency, better data quality and successful HR digitalisation.

Do you have any questions about digital personnel files? Please get in touch with me!

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