Introduction
Before we dive into the basics of sensitive employee data for any company, let’s first refresh our memories on what HRIS exactly is. HRIS is a human resource information system software that manages employee data of an organization. These data include payroll, benefits, performance, and training. Having an HRIS system integrated helps streamline the HR process making it more efficient and reducing costs.
HRIS system is an organized system to help organizations streamline their HR processes, however, the system comes with its own risks to the security and privacy of employee data such as personal information, health records, and salary details. If these data are protected and encrypted properly, the data can pose a vulnerable risk to unauthorized access users, theft, manipulation, or leakage of privacy which can lead to legal, financial, and reputational consequences for an organization and its employees.
Data security is an important factor in every aspect of a business in today’s digital age. Since the HRIS system handles all the sensitive employee data and plays a crucial role in managing the human resources process within an organization, it is important to understand the data security risks in implementing HRIS systems and how vital it is to protect this confidential information by preventing data breaches and maintaining employee and stakeholder trust.
Here are some tips on how to do that!
ASSESSING YOUR DATA NEEDS
Before you go ahead and jump on the wagon like every other organization in today’s digital age, there are a few factors that need to be taken into consideration. You need to first assess what your data needs are, and then identify what types of employee data are required to collect, store, process and ultimately share in the organization. Additionally, it is essential to determine the legal and regulatory requirements for handling employee data in your industry. You will have to comply with the compliance labor laws and regulatory requirements. Once you have figured out your data needs and obligations, it is important to define and set clear policies and procedures for data governance. These include data classification, data retention, data disposal, and most importantly—data access.
CHOOSING A SECURE HRIS PLATFORM
Once you have figured out your company’s data needs and obligations, the next step would be choosing an HRIS platform that is secure and meets your data needs and obligations! You will have to evaluate the security features and capabilities of the HRIS system selected by your firm, while simultaneously keeping an open mind and scanning through different HRIS vendors and platforms. Some of the key features to investigate in a good HRIS system would be encryption, authentication, authorization, backup, recovery, audit, and monitoring. You might also want to take into consideration the deployment of the HRIS platform. It can be cloud-based, or on-premises, or hybrid. These factors can determine how the security and availability of your data can be affected. For example, if you may want to partner with a cloud-based HRIS platform since it offers scalability and flexibility, but note that such features require more trust and oversight from the service provider. Before concluding on any HRIS platform, review the service level agreement, and contract, with the vendor and platform provider. Ensure that both parties are aware and that the contract includes clear terms and conditions for data security, privacy, and compliance.
IT IS IMPORTANT TO UNDERSTAND DATA SECURITY THREATS!
In today’s digital age, data security threats are constantly evolving. In fancy terms, it is becoming more sophisticated and complex daily. Therefore, it is important to identify and comprehend these threats to implement robust security measures. Below are some of the common data security threats in HRIS:
- Malware and Ransomware Attacks
It is a malicious software that can infiltrate your HRIS system and compromise the data integrity and availability. In the case of ransomware attacks, your HRIS data can be encrypted and inaccessible till the ransom is paid off.
- Phishing and Social Engineering
This is a deceptive tactic often used by cybercriminals. They send out phishing emails or social engineering techniques that would probably trick your HR personnel into disclosing sensitive information, or in the worst cases—provide unauthorized system access.
- Insider Threats
Let’s not forget that threats are not always external! There are higher chances of an internal employee/employees, or even authorized users of different ranks, intentionally—or in some cases unintentionally—misusing their privileges. This can lead to data breaches or leaks.
- Weak Access Controls and Authentication
If your system has lenient access controls, this can make the HRIS systems vulnerable to unauthorized access and data theft. Inadequate authentication mechanisms are also a cause of HRIS system vulnerability.
Now that we have covered the various possible threats HRIS systems can face, let’s head on to the possible measures one can take to ensure their HRIS system is protected.
Ways How HRIS Systems Ensure Data Security
Top-notch HRIS systems are designed with multiple security measures that safeguard your company’s sensitive data. Some of these measures include:
- Firewalls and Intrusion Detection Systems
Updated HRIS systems utilize firewalls along with intrusion detection systems that monitor and control network traffic. These security mechanisms help the HRIS system prevent unauthorized access and the ability to detect potential security breaches beforehand.
- Encryption
Encryption techniques are employed in HRIS systems wherein they convert sensitive information into unreadable ciphertext. This encryption ensures that even if there is a data breach and interception, the data accessed remains unintelligible to unauthorized individuals.
- Role-Based Access Control
Top companies with security measures, like banks, have implemented HRIS systems that have role-based access control. This means that employees can only access the data and functionalities necessary for their job roles. This ensures that risks are minimized and there will be limited–to none–of the unauthorized access and data exposure.
- Regular Security Updates and Patches
It is essential that your HRIS system vendors have regular security updates and patches that constantly address the vulnerabilities and protect them against emerging threats. Organizations must ensure they are in touch with their vendors for regular updates to keep their systems secure.
However, having ensured that the data security measures are in place, it is equally essential to maintain practices for maintaining HRIS data security.
Best Practices for Maintaining HRIS Data Security
To maintain robust data security in HRIS, organizations should adhere to the following best practices:
1. Employee Training and Awareness:
To ensure a security-conscious culture is created within the organization, regular training sessions have to be conducted to educate employees about the system’s security best practices. Training for employees needs to be in areas such as recognizing phishing emails and understanding social engineering tactics. They need to be encouraged and advised to create strong and unique passwords. Create a trustworthy atmosphere where employees feel safe and secure to report suspicious activities or potential security breaches.
2) Implement Multi-Factor Authentication (MFA):
Your company has to implement the use of multi-factor authentication for accessing the HRIS systems. This ensures that an extra layer of security is added by making users provide additional verification factors extending beyond just a username and password. These factors can include a one-time password generated by an authenticator app, a fingerprint scanner, or a verification code sent via SMS. This process ensures a significant reduction of risk in the areas of unauthorized access even if a password is compromised.
3) Role-Based Access Controls (RBAC):
Implementing Role-based access controls ensures that every employee has access that is restricted to their job role and responsibilities in the HRIS data system. This limits the potential of unauthorized access or an accidental leak and disclosure of sensitive information or data.
4) Regular Data Backups:
A comprehensive data backup strategy has to be implemented to ensure that data availability and integrity are maintained. HRIS data has to be regularly backed up to a secure location on-premises or in the cloud. These backups must be encrypted or stored in a location that is separate or unknown to avoid risks of data loss in case organizational systems fail, natural disasters occur, or in the worst case—cyberattacks. Additionally, the restoration process must be tested regularly to ensure that the backups are valid and usable.
5) Strong Password Policies:
Employees must be advised to use strong passwords for HRIS system access. If that does not cut it, then enforce a strong password policy wherein the system does not accept the password if it is not strong enough. This will encourage employees to create complex passwords that are difficult to guess. It will also encourage password managers to store and manage passwords securely. Along with this, It is advisable to implement password expiration and regular password changes to avoid the risk of compromised credentials.
6) Regular Security Audits and Vulnerability Assessments:
Another practice that has to be maintained and conducted regularly is periodic security audits and vulnerability assessments. This process helps in identifying any vulnerability or weaknesses in the HRIS system. The process includes reviewing access controls, network configurations, and system configurations. Regular patches and updates for the HRIS software and applications address security vulnerabilities, ensuring HRIS data confidentiality.
7) Secure Data Transmission:
Your company has to implement necessary encryption protocols and tools to protect data during transit. This is highly important as it ensures that HRIS data is transmitted securely over networks and accessing these HRIS data remotely or transferring sensitive employee information is protected and safeguarded.
8) Vendor Due Diligence:
Before you select an HRIS system, it is essential to first thoroughly asses the vendor provider and their security measures, data protection protocols, and compliance with the current industry standards. Review their security policies in protecting sensitive data in HRIS, data privacy in HRIS, data encryption practices, incident response procedures, and data breach notification processes. Ensure that you obtain assurance regarding data ownership, access controls, transfer mechanisms, and employee data security.
The Role of HRIS in Compliance with Data Security Regulations
The Compliance labor laws and regulations place legal obligations on organizations to protect personal data. HRIS systems play a vital role in helping organizations achieve compliance by:
- Data Encryption and Anonymization: HRIS systems are technically built with algorithms that enable organizations to encrypt and anonymize personal data, ensuring compliance with regulations requiring employee data security, protection, and privacy maintenance.
- Access Logs and Audit Trails: HRIS systems can generate access logs and audit trails, ensuring HRIS data confidentiality which document user activities within the system. These logs help demonstrate compliance with regulatory requirements and enable efficient data access monitoring and HRIS security best practices.
- Data Subject Rights Management: HRIS systems facilitate the management of data subject rights regarding data privacy in HRIS, such as the right to access, rectify, or erase personal data. This enables organizations to respond to protecting sensitive data in HRIS subject requests and comply with regulations promptly.
Conclusion:
As organizations begin to go digital and switch to a more data-driven operation, they increasingly begin to rely on HRIS systems to manage and streamline their human resource processes, where prioritizing employee data security and data privacy in HRIS becomes crucial. It is vital to implement the necessary data security measures and understand and avoid data security threats to ensure maintenance of HRIS security best practices.
Organizations should also comply with data security regulations that facilitate the protection of sensitive employee data, maintaining trust and legal and reputational risks.
Selecting HRIS systems that ensure HRIS data confidentiality will not only prioritize data security but allow organizations to safeguard their HR data and protect their sensitive information confidentiality, integrity, and availability. It is now a moral, legal, and ethical obligation that requires awareness, education, and collaboration among all stakeholders and employees.
To ease the HR process while maintaining the privacy of your employee information, Paybooks offers various solutions to HR managers to ensure the safety of data and the efficiency of the HR process. Paybooks aids companies in remunerating their employees without shouldering the burden of compliance within the country.
At Paybooks, we offer a full HR suite that combines all these features and more, providing a single platform for managing all your HR processes. Our platform enables you to manage payroll, benefits, time and attendance, performance management, and more, all in one place. Whether you choose to integrate your current systems or use our all-in-one solution, we have the tools and expertise to streamline your reporting process and improve your overall efficiency.