Employee personal data and company confidential information are now preferably stored on cloud storage facilities, this has made the issue of HR data security more critical than ever before. Every organization, big or small, should be able to assure their employees that their banking details, address, and other personal details are secure. However, for many companies, cyber-attacks remain a threat, especially in remote and hybrid working environments.

68% of business leaders believe that data security risks are increasing frequently. HR services are most vulnerable to security threats and thus, a trusted human resource management service/platform is needed to ensure that personal data is protected. In the current environment, the threat to data security is at an all-time high since more professionals than ever before are working from home using their own devices. Therefore, companies need to hire HR services that implement stringent security measures and utilies the latest tools and technologies for data protection. With the right HRMS software, data security capabilities are higher, and businesses overcome multiple challenges involved in protecting sensitive HR information.

What are the Key Threats to HR Data Security?

  • Bring your Own Device

Organizations implementing BYOD programs at work deal with higher challenges of data security threats, especially with the use of mobile phones for most online tasks. A lot of businesses struggle to handle online security risks when they do not have the right policies and systems in place to protect the company and personal data. Although personal devices used by employees may vary from user to user, the security protocols and policies should be the same.

  • Concerns Related to Digitalization

Before the wide use of computers and the development of software, employee records were noted with ink and paper, but with digitalization and sustainability practices, it soon became preferable to store data digitally. While there are countless advantages of storing data in a digital format, like low-cost storage and easy global access, there are several risks with storing your sensitive information online. For example, a recent survey by Kaspersky found that with easy access, 37% of employees accidentally accessed confidential information of their colleagues related to salaries or bonuses.

  • Biometric Trackers

Biometric trackers have been the latest investment made by businesses focused on reducing time theft and buddy punching. It is important to note that biometric technologies tend to generate a large amount of data like fingerprints, retinal patterns, voice prints, facial images, and other personal information that is sensitive. Therefore, there are high chances that this information can be stolen and misused if not protected safely.

  • Data Access vs Data Security

Companies are still trying to find the perfect balance of ensuring employees have access to the information they need – round the clock, across the globe and protecting sensitive information from getting into the wrong hands. Data encryption, data masking and role-based access are essential to protect and preserve the security of all employee data.

  • Internal Risks

While companies need to be aware of outside threats, the insider threat is equally present. There’s a risk that a bad-intentioned employee or a disgruntled one will use the system to steal data. This requires monitoring employees as a precaution and balancing the adverse effects of disturbing employees’ privacy.

According to recent research, by 2025, over 60% of organizations will choose their collaborators based on the cyber security cover they present. With the right human resource management services, you can outsource your HR and payroll processes to leverage software and technological advancements and mitigate security risks. An HRMS system is in high demand and its function is to have all personnel information in one place to maintain the highest levels of security. As a result, it reduces statutory compliance concerns, offers comprehensive data collection for better decision-making, promotes employee engagement and ensures that HR professionals and procedures are efficient and effective.

How can HRMS Combat Security Threats?

  • Define Top-Notch Security Measures for Data Protection

With HRMS, you can utilize several robust mechanisms to protect data on business premises and in cloud storage facilities, ensuring that your business and employees’ critical data is always secure.

  • Handle All HR Services on a Unified and Secured Platform

A single platform for all HR services like a leave management system, attendance and employee exit processing helps reduce the risks of security threats. You can outsource the HR solutions to a trusted organization and ensure that your data is managed by just one company instead of having it scattered across multiple businesses or different cloud platforms.

  • Ensure Secure and Limited Data Access as Per User Profiles

While employees need access to data, it should be structured with a well-defined access rights management. For example, a HRMS can create bespoke password policies and information deleting policy to minimize inactive users on the application. IP restrictions can also limit server login access to protect valuable data.

  • Follow Statutory Compliance and Data Protection Laws

When it comes to HR and payroll processes, following statutory compliance as well as local and global data protection laws assures employees that their data is stored securely. By choosing an HRMS system that is well-versed with data protection regulations, you can secure all personnel information with complete peace of mind.

  • Leverage the Latest Technologies to Identify New Risks

Companies can use new technologies to combat unknown risks with the right processes in place. For example, new viruses and data threats are constantly emerging in the business world and staying up to date with the latest technologically advancements can give you an added advantage above your competitors.

  • Ensure Physical Protection of the Data with a Secure HTTP Protocol

We advise that only a secure HTTP protocol is used for application access with HRMS systems. With port-based restrictions, only specific ports are allowed to access HRMS applications. Also, the software solutions include antivirus and track threats and vulnerabilities with the Set IP address feature.

  • Offer Data Encryption With SSL Certification

With the 256-bit AES encryption, HRMS ensures secure user credentials are required to log in using username and password. Also, with GDPRS compliance and SSL certification, HRMS systems provide higher security while preventing threats and weaknesses as all personal data is encrypted in the database.

HR and payroll processes are important in an organization and are often the most vulnerable to security threats. TopSource Worldwide specializes in Human Resource Management Services and offers HR and payroll processes that help you combat data security threats in your organization. Our team can handle all your HR services with better control and confidentiality using suitable data security measures. Contact us to get started on your HRMS system today for a secure future!


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Published On: July 5th, 2022Last Updated: July 19th, 2022

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About the Author: Sachin Disa

Sachin heads the India Payroll business unit and is responsible for global sales into India, India domestic sales and delivery, and local finance support in India. Sachin has over 17 years of experience with the company, his previous roles include head of UK payroll operations, head of accounting support services, head of sales in India and VP of finance.