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HR file management with document locators simplifies the process of securely storing and managing employee files, ensuring greater consistency and accountability. The tutorial covers basic navigation, making filing easier and more organized. HR records are stored alphabetically by the employees' last name and the file structure can be customized to fit specific needs. The system automatically creates a new folder structure for new employees added to the payroll system. The video demonstrates navigating to a specific employee's folder and reviewing their documents with a hover-over feature.