The Body Shop has signed a £1m four-year human resources (HR) services deal with outsourcing provider Northgate HR.
The contract expands the retailer's use of Northgate's ResourceLink HR and payroll software, to include a self-service module that will reduce paper waste.
Employees can fill in time sheets and holiday or training request forms online - which are then managed entirely by Northgate HR. The tool aims to cut down both time and paper wasted in the HR processes.
The Body Shop first outsourced its head office payroll to Northgate HR in 2003. The company then extended the service to include retail units in 2005. The latest contract runs until 2009 and provides additional online services for head-office staff.
The Body Shop's HR partner Justin Taylor said: "Our work with Northgate HR enables us to improve efficiency and provide a better service for employees. By cutting down on the amount of paper used in HR process, we're also able to strengthen our commitment to the environment."
The Body Shop is also investigating making the self-service HR option available for store managers.
Last year, cosmetics giant L'Oreal took over The Body Shop in a £652m deal, but the two businesses continue to operate separately.