From Paper File Rooms to Digital HR: Enabling Shared Services at the Canadian Red Cross
More than 20,000 physical folders in Calgary alone. At least six offices involved. Approximately $150,000 in annual savings from reduced physical records costs.
Before the Canadian Red Cross could centralize HR support, it needed to solve a fundamental problem: its employee records were scattered across the country.
Decades of paper files filled rooms and filing cabinets. Some documents were held separately in managers’ desks. Filing practices varied between locations, and finding a complete employee record could involve searching multiple places.
Digitizing those records required more than scanners. It required a consistent approach to organizing information, protecting access, managing retention, and creating new records going forward.
A&A Consulting founder Shilo Burt led this project in 2018–2019 while employed by the Canadian Red Cross, as HR Director. This case study reflects her experience before founding A&A.
At a glance
Project overview | |
Organization | Canadian Red Cross |
Timeline | 2018–2019, approximately one year |
Scope | Hundreds of thousands of physical folders across at least six Canadian offices |
Leadership | End-to-end project leadership by Shilo Burt |
Solution | Records consolidation, retention review, digitization, and a governed SharePoint filing model |
Direct result | Approximately $150,000 in net annual savings across physical records storage, shredding, and related costs |
Broader impact | Enabled an HR shared services model delivering more than $500,000 in annual savings |
In this case study
1. The challenge: decades of decentralized paper records
The existing records environment reflected years of decentralized HR delivery.
Across at least six offices, file rooms contained hundreds of thousands of physical folders. Calgary alone held more than 20,000. Some folders contained only a few documents; others held extensive records accumulated over long employee tenures.
The volume was only part of the challenge.
Records were scattered and inconsistent
Employee information could appear in personnel folders, recruitment folders, sick leave folders, or unlabeled collections of documents. Managers sometimes retained records in their own desk drawers.
There was no consistent assurance that everything needed for an employee’s record was stored together or in the appropriate location.
Physical storage created vulnerabilities
In Calgary, aging building infrastructure had caused leaks affecting the file room on more than one occasion.
Physical access practices also varied. File rooms and cabinets were not consistently secured across offices, creating concerns about how sensitive information was protected.
Paper records limited the future HR model
The organization was preparing to centralize HR services, with team members supporting employees remotely across Canada.
That model depended on authorized HR staff being able to access the records they needed without relying on someone in another office to locate and retrieve a paper folder.
Digitization was a prerequisite for changing how HR services could be delivered.
2. The approach: build the process before scanning
Shilo owned the project from initial investigation through process design, resourcing, governance, implementation, and stakeholder adoption.
The work addressed both the existing backlog and the future filing model. Scanning historical records would have offered limited value if new paper files continued accumulating afterward.
Establish a consistent records structure
The future model distinguished between different types of information, including:
Employee records.
Payroll records.
Recruitment records.
Confidential HR records, including investigation materials.
Medical records.
Each category needed a defined purpose, appropriate access, and consistent filing practices.
The SharePoint structure included document naming conventions and a model for granting and removing access. IT involvement connected access management with onboarding and offboarding processes.
Create an approved retention policy
Shilo developed a records retention policy and process, which received executive approval.
The project team then used that framework to determine what needed to be retained, what belonged elsewhere, and what was eligible for destruction.
A checklist defined the expected contents of an employee file, giving the team a consistent basis for reviewing records and identifying gaps.
Centralize the processing work in Calgary
Physical files from participating offices were shipped to Calgary for processing.
External digitization options were explored, but the quotes exceeded the available budget. Centralizing the work internally offered a more affordable approach than processing files separately at each location.
Two dedicated scanners supported a structured workflow involving HR staff, volunteers, and co-op students.
Build quality checks into the workflow
The process operated like a production line, with clear responsibilities at each stage:
Review and prepare: Sort the folder contents against the relevant checklist and flag documents requiring further review.
Scan: Scan individual documents into a designated processing location.
Check and organize: Confirm legibility, apply naming conventions, and place documents in the appropriate digital location.
Audit: Review existing employee files for apparent gaps before releasing records for destruction.
Colour-coded sticky notes identified why a document had been flagged. A second-level HR reviewer checked proposed destruction decisions against the approved retention framework.
Medical records were handled exclusively by HR team members because of their sensitivity.
3. Managing the transition
The project required people to change practices that had been in place for years.
Some stakeholders were concerned that digital files would be less secure than physical records. Addressing that concern required explaining the future access model, showing how permissions would work, and teaching staff how to manage records consistently.
The project also had to progress alongside the development of the broader HR shared services function.
That made sequencing important.
Current employee files and most medical and permanent-retention records were completed before centralization. Lower-priority historical cabinets were addressed later, with substantial amounts of outdated material assessed as eligible for destruction under the approved policy.
This allowed the organization to make the records needed for ongoing HR service available first, while continuing the historical cleanup.
4. The results
Approximately $150,000 in net annual physical records savings
The project reduced physical storage requirements and the volume of material requiring ongoing confidential shredding.
A conservative estimate of the combined annual savings across storage, shredding, and related physical records costs was approximately $150,000.
In Calgary, confidential shredding collections shifted from weekly visits to approximately quarterly or as needed.
Enabled national HR shared services
Authorized HR team members could access digital records to support employees across Canada.
That capability helped make the centralized HR operating model possible, supporting more than $500,000 in annual savings from the broader shared services initiative.
These are separate measures: approximately $150,000 relates to physical records costs; the $500,000-plus figure relates to the wider HR operating model.
More consistent information management
The organization moved toward a defined structure for employee, payroll, recruitment, medical, and confidential HR records.
Approved retention practices, review checkpoints, and file audits created a more consistent approach to deciding what should be retained and where it should live.
A sustainable digital process
The work established how new records would be created and managed digitally, helping prevent the same paper backlog from rebuilding.
5. What other organizations can learn
A filing problem can be an operating model problem.
When information is scattered, inconsistent, or difficult to access, it limits how work can be organized and who can provide support.
This project illustrates several practical lessons:
Define the future process first. Decide how records will be created, organized, accessed, and maintained before tackling the backlog.
Review what you hold. Scanning everything can carry existing duplication and disorder into a new system.
Match access to the information. Different record types need different handling and permissions.
Build review into the workflow. Clear checklists and second-level checks support consistency.
Prioritize what enables service delivery. Critical operational records can be completed before every historical cabinet is resolved.
Support adoption. People need to understand and use the new process for it to last.
The result was a stronger foundation for HR service delivery, with lower physical records costs and the ability to support employees through a national shared services team.
Is your information making work harder than it needs to be?
You don’t need rooms full of paper files to have this problem. Disconnected folders, inconsistent naming, unclear access, and documents scattered across inboxes can create similar barriers.
A&A Consulting helps organizations improve their HR systems and technology, strengthen HR practices, and build processes that support how their teams need to work.
Want more practical ideas? Subscribe to the A&A newsletter for HR guidance, business improvement tips, and useful tools.
