Why to Use Color-Coded Filing Labels

The Benefits of Color-Coded Filing Labels

More and more businesses are turning to color-coded file management to streamline their record-keeping process. Assigning different colored labels for filing folders, which are often linked to indexing letters and numbers, has advantages for almost every type of organization. Whether you run a law firm, bank, medical office or government agency, you can experience the benefits of color-coded filing. 

Speed Up the Filing Process

One of the biggest lost expenses for an organization is time trying to find information. The McKinsey Global Institute found that workers spend 19% of their workweek searching for the info they need to do their jobs; if an employee makes $60,000 a year, that adds up to more than $11,000 in lost productivity.

Humans have long used color as part of cognitive function; you can apply this phenomenon to make your filing system more efficient. By using colors for different subject groups, themes, etc., workers will quickly learn to associate them with each other. When retrieving or putting away files, they don’t need to read through shelf after shelf of file names and black-and-white labels – they just need to look for the appropriate color group. This results in much faster record management, boosting productivity and the morale of employees who aren’t frustrated from trying to track down files.

Identify Misfiles Faster

Even with the most detailed file storage system, folders are still put in the wrong place due to simple human error. It’s estimated that three percent of all paper business records are misfiled, while the average misfiled document costs $120 in labor to locate.

However, color-coding makes it much easier to see if there’s a filing error. When you have consistent color-coded filing, it results in long bands or blocks of matched-up color stripes within your files. When a file is out of place, it breaks up the color pattern. In a row of orange labels, a blue one will stand out, letting you correct the mistake without further issues.

Create a Custom Filing System

One of the best parts of color-coded filing is that you can set it however works best for you. Some filing supply companies like Smead and Barkley have their own indexing system that links colors with certain numbers, letters, months of the year, etc., but if you want to develop your own system, that’s fine, too.

For example, use red solid color band labels for high-priority items, yellow for items that need to be reviewed and light green to signify a project is complete. You can designate budget-related files as gray and sales proposal files as brown or develop unique industry-specific identifiers. It’s up to you! The Supplies Shops can personalize color-coded labels to work best for your office filing system.