EDI Technology in Human Resources


Electronic Data Interchange (EDI) in the human resources space is becoming more and more common, and rightfully so. EDI technology has a multitude of benefits for HR employees, and it’s something that numerous companies are shifting to.

EDI Technology

What is it?

So what exactly is EDI technology? It is the computer-to-computer exchange of business documents in a standard electronic format. In simpler terms, it’s an electronic transfer of documents. This eliminates the manual processes of needing humans to exchange important documents in the workplace (for example,
benefits enrollment). There’s no paper and no people involved to slow down the transfer.

The other important part of an EDI transfer is the ‘standard electronic format.’ This is important because without a standard format, the computers involved in a transfer won’t be able to understand each other. It would be like a person that speaks English trying to understand another that is speaking Mandarin Chinese.

EDI Benefits

As we mentioned, there are a lot of benefits to EDI technology when it comes to human resources. These include:

  • Cost savings - Because everything is transitioned from paper to electronic, it can produce a significant cost savings for your business. It eliminates paper, printing, storage, filing, and postage costs that are typically associated with having to transfer documents manually.
  • Speed and accuracy - Exchanging of important information can take literally seconds instead of days or weeks. Not to mention, it eliminates human errors, such as lost documents and incorrect data entry.
  • Business Efficiency - Transitioning from manual tasks to EDI allows your HR staff to focus on higher-priority tasks. Gone are the days of having to rework and resend documents that got lost. EDI technology eliminates that.
  • Improved data security - Data security is absolutely paramount to any company. Manually passing documents with sensitive data from person to person isn’t a very secure process. An EDI process allows data to flow from one computer to another in an encrypted environment, which is a much more secure process.

Implementing EDI Technology

After reading through what EDI technology can do for your business and the numerous benefits it can offer for your HR team, you might be wondering what it takes to implement EDI technology in your workplace?

We recommend implementing EDI as part of a suite of other HR tools.
A Human Capital Management (HCM) System might be exactly what you’re looking for. It is an all-in-one solution that allows your HR team to manage HR, payroll, talent acquisition, benefits, timekeeping, and more.

The benefits of a human capital management system are endless. Is your company ready to talk with somebody to see if implementing EDI technology with an HCM solution is right for you?

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