How to protect HR data security

Understanding and implementing HR data security measures is an important task for human resources teams. HR professionals also need to safeguard the confidentiality and integrity of employee data against data breaches.

In this article, we'll take a look at the importance of HR data security, types of HR data security threats, and best practices for keeping sensitive HR data secure.

What is HR data?

HR data covers employee details like contact information, employment history, payroll specifics, benefits, and performance records. HR professionals and use this data for strategic decision-making and effective people management.

Why is HR data security important?

HR data holds confidential and critical information about a company. Yet, 31% of companies do not implement internet or mobile security protection methods to prevent sensitive business data from leaking outside the organization.

HR data security not only protects the personal and professional information of employees, but also the reputation and integrity of the company.

Protect employee privacy and sensitive information

On average, global companies face 1,248 cyber attacks per week. By 2025, cybercrime is projected to cost companies worldwide a staggering 10.5 trillion USD annually.

Strong HR data security not only mitigates financial loss and legal liabilities but also protects your employees against identity theft, financial fraud, and personal harm.

Stay compliant with global data protection regulations

About 50% of HR professionals admit that they lack confidence in keeping up with the ever-changing rules and regulations of global data protection regulations.

For example, General Data Protection Regulation (GDPR) and Health Insurance Portability and Accountability Act (HIPAA) require stringent data security measures. With more complicated regulations, HR professionals need to stay informed to keep their organization compliant.

Failure to stay compliant with global data protection regulations can result in substantial legal penalties and potential operational disruptions. 

Maintain trust and reputation in the business

Securing HR data is more than a legal obligation — it’s the foundation of employee engagement, loyalty, and a positive company culture. 

A commitment to protecting HR data reinforces a company’s credibility, both internally with employees and externally with clients and stakeholders. Your employees will only stay with your organization when they can trust that the company can safeguard their most sensitive details, including health information and personal identifiers.

The growth and continuity of a business also depends heavily on the business’s reputation for data security. This is because customers and partners are more likely to engage with a company they perceive as trustworthy and responsible, especially when handling sensitive information.

3 common HR data security threats

Let’s take a look at three security threats that businesses often face. 

1. Internal risks: Employee misconduct and errors

Employee misconduct and errors from employees can lead to HR data security threats. 56% of HR data security threats come from employee negligence.

Human errors like misdirected emails, accidental data exposure, and mishandling of sensitive information can lead to unintended data breaches. These seemingly small mistakes can have far-reaching consequences, compromising the privacy and security of sensitive data.

Employee misconduct, such as deliberate theft or misuse of HR data, presents an even more insidious risk. For example, an employee with access to sensitive information might sell or use that information for personal gain.

2. External risks: Cyberattacks and data breaches

External HR data security risks, like cyberattacks and security breaches, are escalating at an unprecedented rate. For example, global ransomware attacks surged by 67%

External data attacks jeopardize personal employee data. External data attacks may target to obtain employee login credentials and confidential data. Ransomware attacks may try to encrypt important HR files and demand a ransom for their release.

3. Technological risks: Outdated systems and software vulnerabilities

Outdated HR systems may lack the necessary security features to ward off cyber. For example, insufficient encryption, poor password policies, or outdated firewalls can make your HR platform susceptible to data breaches. 

Unpatched systems can also expose sensitive HR data. That’s why it’s important to regularly update your HR software.

Impact of remote work on HR data security

Among people who can work remotely, about 35% of US employees work from home, and 41% work a hybrid schedule. 

With a majority of people working from home, companies need to reinforce its HR data security measures. For example, remote networks and personal devices have their own security risks, especially when employees connect to unsecured Wi-Fi networks.

When managing a distributed team, maintaining consistent data security protocols across locations is also a challenge. Data vulnerabilities across networks, devices, and cloud platforms also make it more difficult to protect sensitive information in a decentralized work environment. That's why working with an HR partner that keeps your HR data in a secure platform can be the best solution to manage a remote team.

Best practices to safeguard HR data

Here are some best practices to help you protect sensitive employee information and maintain compliance.

Establish strong access controls and authentication methods

For HR data security, implement strong access controls and reliable authentication methods. For example, role-based access and strict password policies help protect sensitive HR data. 

Regularly updating and reviewing access privileges is also important. It helps you make sure that access rights remain relevant, and reflects any changes in staff roles or security requirements.

Advanced authentication, such as multi-factor authentication (MFA) and biometric checks, enhances security by requiring multiple proofs of identity. Two-factor authentication (2FA) and single sign-on (SSO) options also help keep your HR data secure.

Conduct regular audits for global compliance

25% of HR professionals have admitted to not auditing their employee data for more than six months. Periodic security audits help you stay compliant with global data protection standards. Regular audits also help you quickly identify vulnerabilities in HR data security and potential non-compliance issues.

As an ISO27001 certified and SOC 2 compliant platform, Remote makes sure that your HR data is safe according to the latest security standards.

Ensure robust infrastructure and data encryption 

Investing in secure IT infrastructure, like firewalls and intrusion detection systems, should be a priority for any organization that handles important HR data. Encrypting data, both at rest and in transit, further ensures that sensitive information remains confidential and secure from unauthorized access. 

Offer employee training programs

Don’t rely solely on technology for data protection. Train your employees on data security protocols and best practices to prepare them to recognize and respond to potential security threats. Employees who are aware of risks such as phishing scams and improper data handling procedures are less likely to make mistakes that compromise data security.

Furthermore, tailoring these training programs to different roles and access levels within your organization will help every employee understand their role in protecting sensitive information. 

Hold incident response planning sessions and regular security updates

A comprehensive incident response plan can be a lifesaver in crisis situations. It helps you act quickly and communicate effectively during data breaches, which helps you minimize potential damage and maintain trust with stakeholders. 

Remember also to routinely update your security software and systems to mitigate emerging threats. 

At Remote, our security practices include regular application security audits and a dedicated security team. We have a proactive approach to incident response and regular security updates, guaranteeing that we are always ready to jump into action against evolving cyber threats.

Adhere to international data protection laws

Compliance with international data protection laws, such as GDPR or the California Consumer Privacy Act (CCPA), is fundamental to global HR data management. Regular legal consultations will help you adhere to ongoing compliance and adapt to any changes in legislation. 

Integrate HR data security into your business with Remote

At Remote, securing employee and employer data is a priority. Remote protects your HR data with enterprise-grade data protection and compliance. Our practices are regularly audited and verified by independent third-party assessors, giving you peace of mind.

To learn more about how we can help keep your HR data secure — while making your entire HR processes quicker, easier, and more cost-effective — chat with us today.

Start hiring with Remote, the new standard in global HR

Create an account with G2's top-ranked multi-country payroll software and start onboarding your first employees in minutes.

Get started nowSchedule a demo