The question of whether to use folders or document sets in SharePoint Online continues to spark debate in many organisations. On the surface, folders are easy and familiar – but that simplicity can come at a cost if not carefully managed. Document sets offer a more structured and scalable solution, particularly for organisations with growing content needs or defined governance models.
So which should you choose in 2025? The answer depends on your organisation’s information architecture, user needs, and approach to governance.
Folders: Familiar, but Potentially Problematic
Folders remain popular because they mimic traditional file shares. Most users already understand them, and they integrate neatly with the modern SharePoint UI and OneDrive sync client.
However, relying too heavily on folders can lead to a complex and unmanageable structure. If users are left to create folders freely, you may quickly find yourself dealing with:
- Inconsistent naming conventions
- Overly nested structures that are hard to navigate
- Challenges with applying metadata or filtering content effectively
Moreover, folders don’t support custom metadata at the folder level, limiting your ability to classify and surface content through views or search.
Top tip: If you do use folders, ensure there is a clear governance framework in place. Define who can create them, establish naming standards, and back this up with training and oversight.
Document Sets: Structure, Metadata, and Flexibility
A document set is a special SharePoint content type – a configurable structure that combines the best of folders and metadata. It allows you to group related documents together, apply shared metadata, and define rules around workflows, retention, and permissions.
Key advantages of using document sets include:
- Custom metadata: Unlike folders, document sets can have unique columns. This makes it easier to tag, filter, and report on documents grouped within the set.
- Version control and bulk updates: You can update metadata across all items in the set using the Edit Properties pane. Each document still maintains its own version history.
- Workflow integration: Document sets can trigger automated processes such as approvals or archiving – ideal for HR onboarding, procurement packs, or case files.
- Permission control: As a content type, a document set can be configured with unique permissions and retention rules.
- Modern UI support: Document sets now behave consistently within the modern SharePoint experience, offering a cleaner interface and better metadata editing tools.
So, Which Should You Use?
If your organisation values ease of use above all, and you’re working in a tightly controlled environment, folders can still work – with the right safeguards. But if you’re building a scalable, metadata-rich content model that supports automation, compliance, and intelligent search, document sets offer a strategic advantage.
In short:
- Use folders for simplicity and when governance is strong.
- Use document sets when structure, metadata, and automation matter.
Choosing the right option isn’t just about preference – it’s about aligning your tools with the way your organisation works, grows, and governs its information.
What’s New in 2025?
Recent updates in SharePoint Online continue to strengthen both approaches. Libraries are now more responsive, bulk editing is smoother, and metadata management is better integrated across the Microsoft 365 experience.
But one of the most significant developments is the increasing role of AI in document management.
Looking Ahead: Enter Microsoft Syntex
Microsoft Syntex is part of the Microsoft 365 ecosystem and is designed to help organisations manage large volumes of content more intelligently. It uses AI to read, classify, and tag documents automatically – reducing the need for manual input and improving consistency.
When combined with document sets, Syntex becomes even more powerful. It can enhance classification, apply metadata automatically, and trigger workflows—all of which support a cleaner, more compliant, and more discoverable SharePoint environment.
For organisations looking to scale or optimise their content strategy in 2025 and beyond, Syntex offers a practical step forward in automating document governance and unlocking the full value of your information.
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