Three years into the COVID-19 pandemic has resulted in the digitalization of most workplaces. Organizations have been left with no choice but to reorganize their business models to adhere to the ‘New Normal’.
The COVID-19 panic has resulted in significant changes in our daily lives, changes that have occurred abruptly and unexpectedly. Our work, home, and social life have all been changed. We were forced to face this new normal where the wearing of masks is a must and the implementations of lockdowns and social distancing have become the new norm. Businesses were disrupted, some were even forced to stop operations. Today, as a result, working remotely has become a huge part of the new normal.
Now that the light at the end of this dark tunnel seems almost reachable, companies are slowly returning to their pre-pandemic setups. The world is preparing to gradually step back into what life was like before the pandemic hit us, leading us to this type of blended workforce called the hybrid work model.
The pandemic has paved the way for a hybrid work setup — this requires employees to work both on-site and remotely. Hybrid workforces have become increasingly popular as businesses seek to stay competitive by providing employees with flexible work options. As a result, there’s been a high demand for digital tools, such as electronic signature applications, from professionals who are in a work-from-home setup.
Electronic signatures were already a part of many transactions long before the pandemic took us by surprise. Moreover, the new normal has increased the demand for electronic signature tools.
An electronic signature, most commonly called “e-signature”, is a legal technique of obtaining consent or approval on electronic documents or forms. It can take the place of a handwritten signature in almost any process, particularly in virtual transactions. They are legally binding as long as these four factors are met:
- Intent – The party signing the contract, order, or agreement must intend to do so. This is proven by showing that they were aware of the terms and willingly appended their electronic signature.
- Consent – Before the signing takes place, both parties must give their consent. This means that any prior agreements on which the document is based on do not count as consent unless the document clearly specifies so.
- Accuracy – Any electronic record or signature must have its content preserved and unaltered. All parties involved should be able to identify and recognize any modifications made.
- Retention – The document must be accessible to all parties for the term of the agreement, as well as any litigation that may come from it. Each party should also have access to any prior versions of the document to which they contributed.
Electronic signatures can be in several forms, such as typed-out, an uploaded image, and a drawn signature using a smartphone or tablet. Some electronic signature applications ensure the authenticity of the person signing the document by requiring digital IDs.
E-signatures are used as an alternative to traditional or ink-based signatures due to a variety of purposes. The Electronic Signatures in Global and National Commerce Act (E-SIGN Act) in the United States is a federal law that confirms that electronic signatures have the same legal standing as handwritten signatures as long as it follows the four major requirements: Intent, Consent, Accuracy, and Retention.
Uses of Electronic Signature in the New Normal
Let’s look at how some departments in a company can benefit from e-signatures:
Finance
E-signature applications can be used to e-sign tax filings, disclosures, and loan applications. Using electronic signatures, your financial team can sign off budgets, authorize invoices, and approve purchase orders. In some instances, electronic signatures can be used to provide a layer of authentication and security to documents.
Marketing
Collecting signatures from stakeholders within the company to launch a marketing campaign is easier using e-signature. Moreover, if your marketing team is planning to collaborate with a third-party agency for a campaign, they need to get approval from the executive team before employing the agency’s services. They also need to collect signatures for contracts from the agency. Using e-signatures instead of the traditional ink-based signatures allows your marketing team to fast-track processes between the executives and the agency.
Procurement
Working with vendors can save your company time and money, as they can manage the production and distribution of your products and the receiving and inspecting of goods, particularly when they charge less and provide better service. The onboarding process of hiring vendors, however, can be time-consuming and costly. Using an online platform that lets you send would-be vendors agreements straightaway speeds up the onboarding process. You can electronically send them the agreements and collect e-signatures. Once they have agreed and e-signed the documents, they can begin providing services or goods.
Administration
Executive and administrative assistants, as well as other members of the administrative team, can benefit from electronic signatures. If they spend a lot of time collecting wet-ink signatures for contracts, leases, non-disclosure agreements, or other documents used in the office on a daily basis, using an e-signature application can help them save time and resources. Electronic signatures can be used by the administrative team to have members of the management or executive teams sign off on projects or agreements.
Human Resources
Electronic signatures can assist your organization in making a positive first impression on potential hires. It speeds up the onboarding process by ensuring that new hires receive all of the paperwork they require in one go. Instead of manually flipping through a contract or an employment agreement, they can just read the electronic version. E-signature applications help in making sure they e-sign on all the appropriate areas and not miss any signature field.
A new hire can go from being a candidate to an employee in less time because of e-signature technology, which eliminates most of the traditional back-and-forth paperwork.
Sales
Electronic signatures have a faster processing time, which can benefit your sales team. Collecting electronic signatures on non-disclosure agreements and sales contracts improves your team’s performance. E-signature applications let you know when the contract is received, opened, and signed by the client. If there is a delay in collecting the signature, you can follow up by sending an email to confirm if the lead is still interested in pursuing the sales transaction with your company.
5 Benefits of Electronic Signature
Electronic signature applications have a wide range of tools that are beneficial to their users. Here are some of the benefits of e-signatures:
Convenience
Virtual transactions have become more important, especially now that remote work has become more common. Moreover, virtual transactions are easier using e-signatures. E-signatures are independent of time and location, it can be made anywhere at any time. When multiple people must sign the same document, using e-signatures comes in handy. The signatories do not need to meet physically, as they can e-sign the document wherever they are.
Efficiency
Electronically signing a document is almost as fast as signing it on paper, but it saves time in terms of logistics. Businesses can manage paperwork more effectively when documents do not need to be scanned or printed and mailed. Documents can be saved online where authorized people can access them. Moreover, sending electronic documents to recipients only takes a few seconds.
Authenticity
The use of electronic signatures ensures both the signature’s legitimacy and the document’s integrity thanks to encryption and thorough identification processes. Because of this, falsifying electronic signatures and modifying documents are impossible.
Safety and Security
Compared to traditional handwritten signatures, electronic signatures provide more protection for confidential and sensitive information. Electronic signature applications make sending, receiving, and storing electronic documents secure. They create digital audit trails for fraud detection. E-signatures are also considerably more difficult to forge and e-sign software can identify and show even minor alterations. Electronic signatures record more data points than traditional paper signatures, giving signers more security.
Paperless Transaction
Electronic signatures do not only simplify the signing process but also make it paperless — companies may now choose to go green. A document that has been signed electronically is also processed electronically. Since the document will not be printed, there is no need to think about its physical storage. As a result, there will be a reduction in the amount of paper used which will have a positive effect on the environment.
With so many uses and benefits, it’s no surprise that businesses are embracing electronic signatures as one of their must-have digital tools. As a result of the COVID-19 pandemic and the associated social distancing, in-person signing of documents has become increasingly difficult. Technology is playing an increasingly important role in altering standard business practices — one notable practice is the use of electronic signatures. With their growing use and people becoming more familiar with them, e-signatures have become a part of the new normal.