Irani Papel e Embalagem gains agility in the implementation of Digital HR
Remote work has contributed to the company’s digital transformation
Proposed solution
Implementation of a digital and electronic document signing platform.
Customer Need
Digital Transformation Process
About Irani
Founded in 1941 and controlled since 1994 by Grupo Habitasul, a traditional business group in Brazil’s southern region, Irani Papel e Embalagem is currently one of the leaders in the corrugated cardboard packaging industry in Brazil, in addition to being a leader in the packaging paper industry (rigid and flexible). With integrated production, its own forests, self-generated energy, and constantly updated machinery and equipment, Irani produces packaging paper, corrugated cardboard sheets and boxes, pine resins, rosin and turpentine, ensuring the supply of renewable raw material products with high quality and high competitiveness. Irani has 5 production units: two in Vargem Bonita (SC), one in Santa Luzia (MG), one in Indaiatuba (SP), and one in Balneário Pinhal (RS), in addition to forests in Santa Catarina and Rio Grande do Sul, and offices in Porto Alegre (RS) and Joaçaba (SC), with over 2,200 employees.
Digital Transformation Process
Can a company that manufactures paper also contribute to the environment? Of course it can! With the adoption of sustainable practices, innovation and improvements in its processes, or their renewal through new technologies, it is possible to make a substantial contribution to the environment.
In this context, throughout its 80 years of history, Irani Papel e Embalagem has implemented processes in its production and extraction line, which comply with the principles of sustainability in order to bring positive impacts to nature. This is evidenced by the fact that the Santa Catarina-based company has already won over 50 awards in the field of sustainability.
Irani currently has five manufacturing units in four Brazilian states, 2,200 employees and 34,000 hectares of land to supply its production of packaging paper, corrugated cardboard boxes and sheets, and resins.
The beginning of the digital transformation of HR
In line with the company’s evolution process, the digital transformation is taking major steps. New technologies are being implemented, and the People Development area (DES) could not be left out of this process. “The legal area had already implemented the digital signature in contracts with suppliers, and we got to know better how this technology could be applied to the DES. With the pandemic and the change in our work model to remote work, we realized that this process could also be used in the DES, so that we could have greater flexibility in signing admission documents,” commented Bianca Souza Salatino, Coordinator of Personnel Attraction, Retention and Administration at Irani.
Solution and implementation assessment process
Bianca explained that, as soon as the service was contracted, the platform was put to testing. She recalls that the first signing involved a service agreement entered into by the legal department. As the result was favorable, the legal area included in its individual goals the gradual increase of electronic signatures.
After creating a simple tutorial and an explanatory video to provide guidance on signing, the DES team began to experiment with the tool, initially using it for the admission documents for new employees. Computers and the Internet were also installed so that shop floor personnel could also sign documents.
“We assessed 3 suppliers, and QualiSign proved to be more accessible to present the tool and the applicability, providing us with a lot of security regarding the implementation process. Additionally, the portfolio of companies that were already using the service was one of the safety factors for the choice,” said the Coordinator of Personnel Attraction, Retention and Administration at Irani.
Natural resistance to innovation
A new technology generates a change in habits and, as a consequence, may bring resistance to change, which is often cultural in nature. Bianca said that there was a degree of resistance in the DES area from the analysts who carry out the operational processes, although the team was able to adapt in a short time. “Because they are used to the manual model, it took them a while to understand how much this digital process would provide us with agility in deliveries. Over time, they added value to the process, and today, we are very well adapted and seeking to increasingly expand the number of documents in this new format. We chose to centralize the inclusion of documents in the corporate area, leaving the units with guidance regarding signatures,” she commented.
When to use the digital or electronic signature
At Irani, the criterion adopted for the use of the digital signature (with a digital certificate) and the signature without a digital certificate (electronic) was based on the type of document to be signed. “For digital signatures, we use single and individual documents that require the signatures of the attorneys, while for electronic signature, we use all admission, vacation and termination documents (where applicable),” explained Bianca.
The main documents converted to the digital format were:
Forms related to the process of hiring new employees, Employment Agreement, Registration Form, Inclusion, change or exclusion of Benefits, Vacation Notice, Dismissal Notice, and Employment Termination Agreement.
Exception: Dismissal without cause, due to the relevant agencies not yet accepting documents with digital or electronic signatures. That is not because of the legal validity of the signature, but rather due to the agency’s operational capacity to accept digital documents.
From 10 days to 48 hours
The main advantage of the digital process is the gain in speed in document formalization. By implementing digital and electronic signatures on documents, the previous paper-based process will quickly be forgotten, given its agility and convenience: “We understand that this was our main gain, as we have periods of in year where admissions occur on a large scale. What used to take about 10 days, given the process to collect all the signatures (attorneys, employees, and witnesses), can now be finished in 48 hours. In some cases, we used mail or courier services to collect signatures, but now, this is no longer necessary.”
Cost reduction and productivity gain
It is clear that the change from paper to the digital process eliminates a series of steps and, consequently, operating costs, as highlighted by Bianca: “We evaluated the items considered and understood that the gain in cost reduction for the DES area was 60%, given that our documents are not 100% in the digital format, which still requires us to maintain printer rental costs and, in some more specific cases, physical documents, as well as their storage”.
Another advantage observed in the use of digital media is the concentration of all documents in one place, on the digital platform, making it easier to control who needs to sign a document and who has already signed it. The possibility of adjusting the document workflow or even replacing a document that has not yet been signed ensures operational agility. “In our calculations, we found that there were savings of 3 days per month per employee. These resources ensured 13.1% of productivity, which allowed them to focus on other activities that are more relevant to the DES,” explained Bianca.
Sustainability – One of the pillars of Irani
Talking about gains in paper savings in a company that manufactures paper for packaging (kraft paper) seems to be inconsistent, but it is not. The change from paper to digital is due to a need to gain agility, productivity and simplification of processes in the administrative world. This also contributes to saving energy and water, as well as reducing CO2 emissions that would otherwise be spent on paper production.
This is just one of the many actions by Irani, which has a robust environmental management program with sustainable actions, from the wood extraction process to its final products, in line with its values. “The commitment to sustainability is everywhere our business chain: it starts in the forests and is completed by the work in nearby communities, which promotes the search for a socially fair life.”
Intangibles
The digital world leads us to a change in behavior and habits. Now, the company has availability and access to a document that can be signed anywhere and anytime, including on mobile devices. “Directors and attorneys were very pleased, as they used to receive piles of papers for signing, while now they can carry out a batch signing process, with a single click. Our perception is now more focused on organization and time for people to analyze the documents,” said Bianca, who also provided tips for implementing the technology: “In the beginning, we are afraid that something will not work well. Give it a try, dare, and innovate. Work alongside your legal team. They will give you the necessary legal support to ensure more security. Also, get full support from your supplier. Choose a few documents. We chose the admission documents, because if we had any problems, the impact would not be that great. As it works, we can expand the process to other documents and feel greater safety. The result is highly positive and secure,” she concluded.