Herman Paavilainen came from an agricultural background and was a statistician by training. In his time, he was one of the most significant developers of Finnish insurance activity. In the 1920s, he made several trips to countries across Europe to study their accident and social insurance conditions.

In autumn 1917, Paavilainen participated in a meeting held to generate ideas for founding a new type of educational institute in Finland. Paavilainen quickly progressed from words to actions. He was involved in preparing the curriculum and budget and acquiring premises when the School of Social Sciences, the predecessor of the University of Tampere, began its operation in 1925.