This article has been written by Barnali Ghosh pursuing a Diploma in Business English Communication for International Professionals and Remote Workers from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

As an HR employee, it is very important that you know what data security means. This is just that kind of place where all the confidential and sensitive information of every employee is stored. It holds information like addresses, social security numbers, bank account details and a whole lot more. This is kind of a treasure trove for every HR department of every company. Thus, it is their prerogative to keep their sensitive information safeguarded. This ensures that the company complies with all the data security regulations of the land. As a result, the company’s reputation is upheld and this is very important for the organisation as well. 

What is employee data

Now, for all that, it is essential to know what employee data is. What does it comprise, and why is it important for proper preservation? Employee data, in all reality, is that information that includes contact details, employment history, benefits, payroll information, attendance and performance records, and any other record that is vital for the proper operation of the particular organisation where the employee is hired. Thus, it can easily be gauged why such information and its secure preservation are of such importance. 

Security of employee data

It is important that every organisation and its owner secure their employee’s data. Here, we will walk through some of the most vital reasons why their data security is of utmost importance.

Legal and ethical commitments

It is important ethically and legally to safeguard all information pertaining to employees of an organisation. It is important not only because the law of the land demands it but also because it is morally right. Every individual has the right to have his/her privacy protected by the organisation that they are working for, as they are required to share some sensitive data just as the contract begins. 

If the company fails to protect such sensitive data, they are in severe trouble with the law of the land. They cannot allow any unauthorised access to all this information, no matter what the situation demands. It may result in costly legal hassles and financial losses, in combination with the reputation of the firm. Thus, in view of this, every firm would go the extra mile to safeguard all information.

Here we might as well quote some examples where some major corporate giants suffered colossal losses from breaches in the data security of their companies. Target in 2013 saw hackers steal the information of over 40 million customers and confidential records of over 70 million employees. Yahoo suffered two setbacks separately in 2013 and 2014, wherein 3 billion users worldwide had their account details compromised. Anthem Inc. saw the information of 80 million employees exposed in 2015. Even Marriott International had its Starwood guest reservation database rubbed along in 2014. So this employee data transgression and dereliction are not new in the history of mankind.

Regular security audits

Regular security audits should be a mandate for every organisation in view of employee data security. It should be conducted as often as once a year and if possible, even more. This system should comply with all the internal criteria of the company as well as the external ones imposed by the law of the land.

In this audit, all the susceptibilities and dangers should be identified and made secure. However, it is important to note here that there is no universal audit system that will fit in for every company. Each has its own unique features and systems that must be dealt with appropriately. For this, the following points should be checked:

• Audit criteria should be carefully chosen
• A checklist must be in place to ensure only authorised people are accessing this confidential data cache
• All weak points are to be identified and penetration tests are to be conducted

Restricted access or user-specific access

Access should be restricted to only authorised people in this regard. Authorisation in specific areas should be the mandate of every company. Say, for instance, that only managers who have to review the attendance and performance of employees should be allowed there and no one else. They should not get access to other information, like the medical history of an employee or their confidential bank details. That access has to be given to another person, who should again not have access to other information. Even authorised people should be made to get authorisation for individual applications. 

To reach this goal, there should be an access record wherein all the passwords, biometrics and other details should be entered. This will help the company have records in case of an emergency and seamlessly trace the culprit if the need arises. 

Proper disposal of records

There is a retention period for all records, as per the law of the land. After that period terminates, the employers must dispose of all those records so that they cannot be read or regenerated. This can be done by various means and methods that include pulverising, burning or even shredding those records. However, destruction means are limited to these methods only; the employers can choose whatever means they like so long as the records are disposed of. If it is an electronic record, the right person should be contacted to take over the task of disposal. That person has to be trustworthy and reputed or it may stand a chance of falling into the wrong hands. 

Provision of adequate training

Every individual in charge of such high security and confidential matters should be trained and mentored on the right methods. They should be well-versed with the company’s laws and policies so that they do not make mistakes even unintentionally, because that costs a lot for both the employee and the employer. They should be trained on how to mitigate unauthorised access and make quick responses in case of security lapses. They should be trained on how to identify and track hackers and thieves.

Minimisation of data

Only information that is absolutely essential for the running of the show should be collected and preserved. That means the minimum amount of data is to be stored. It may be a difficult process because it all depends on how much a potential candidate can reveal or divulge in their cover letter and CV. There are certain checks and measures that are undertaken for certain candidates. It must very strictly be restricted to only people who absolutely need to go through them. So, to keep things under control, the HR department must know the purpose of data collection and adhere to it. This ensures the minimum collection of data. The company should also know the length of time they are required to preserve that data. If that time limit is exceeded, then the organisation might be in for a heavy penalty, which is not desired at all. This affects the reputation of the company as well.

Here, it is noteworthy to pay heed to the fact that recently, Amazon was penalised for historical privacy sabotage by retaining the data of children in spite of being asked to delete it. So, no company has any reason to believe that they are above the laws and directives of the land.

Precise and valid tech support is the right way to secure data

If a company has all the certifications that are required for it to function and operate, it means they are up-to-date with all the laws of the land. This also means they have a rightfully secure data usage and storage. These are aspects that must be paid heed to by every owner and it is in their best interest that they do so. This ensures that the software that they are using to secure their data is strong and steadfast. 

Being a technology-compliant company, after all, pays off for every owner or employer. They are naturally free of all the security breaches and lapses that they might otherwise face. In this regard, it is equally vital to remember that the technology should be upgraded from time to time. This ultimately goes a long way towards protecting employee data, keeping it secure and preventing the employer from having to go through sleepless nights tossing and turning in their beds. 

If data is stored in encrypted databases or secure servers, then there is every chance that they might prevent security lapses. This means that they can be stored both on-site and in the cloud storage system. 

Again, there are certain tools like multifactor authentication, firewalls, data encryption, automated threat detection systems, antivirus and anti-malware software that can be used for high security purposes. In this respect, all employees and people related to data access and usage should use passwords that are very strong and not very easy to decode by hackers who can hack into absolutely any password. This again helps secure employee data.

Guide to keeping organisation’s applicant and employee data secure

1. Data security policy:
   • Develop and implement a robust data security policy that outlines the organisation’s approach to safeguarding sensitive information.
   • Include guidelines on data access, storage, retention, and disposal.
2. Access controls:
   • Implement multi-factor authentication for all HR systems, including applicant tracking software and payroll systems.
   • Restrict access to sensitive data to authorised personnel on a need-to-know basis.
   • Monitor and regularly review user access privileges.
3. Encryption:
   • Encrypt all sensitive data at rest and in transit, including personal information, financial data, and medical records.
   • Use strong encryption algorithms and key management practices.
4. Data retention and disposal:
   • Establish clear data retention policies and procedures.
   • Regularly review and delete outdated or unnecessary data in accordance with legal requirements and your organisation’s policies.
   • Use secure disposal methods, such as shredding or erasing, to prevent unauthorised access to discarded data.
5. Employee training:
   • Conduct regular security awareness training for employees, including proper password management, phishing identification, and reporting procedures.
   • Emphasise the importance of protecting sensitive information and the consequences of mishandling it.
6. Physical security:
   • Ensure physical access to HR records is restricted to authorised personnel.
   • Implement access control measures, such as key cards or biometric scanners, to secure sensitive areas.
   • Monitor and record all entries and exits to these areas.
7. Incident response plan:
   • Develop and maintain an incident response plan that outlines the steps to be taken in the event of a data breach or security incident.
   • Establish a clear chain of command and communication protocols.
   • Regularly test and update the plan to ensure its effectiveness.
8. Compliance:
   • Ensure compliance with relevant data protection laws and regulations.
   • Regularly review and update your data protection practices to stay compliant.
9. Regular security audits:
   • Conduct regular security audits to assess the effectiveness of your data security measures.
   • Identify and address any vulnerabilities or weaknesses in your security infrastructure.
10. External vendors:
    • Evaluate the data security practices of any third-party vendors or service providers that process or store your organisation’s applicant or employee data.
    • Ensure they adhere to strict data protection standards and have appropriate security measures in place.
11. Continuous monitoring:
    • Continuously monitor your systems for suspicious activities, such as unauthorised access attempts or data breaches.
    • Implement security monitoring tools and conduct regular log reviews to detect and respond to potential threats promptly.
12. Incident reporting:
    • Establish clear procedures for reporting data security incidents, including to affected individuals and relevant authorities.
    • Investigate incidents thoroughly and take appropriate corrective actions.

By following these best practices, HR professionals can effectively protect their organisation’s applicant and employee data, maintain compliance, and build trust with their stakeholders.

Conclusion

With this entire ruckus about data protection and privacy laws, it measures up well to the fact that the future belongs to the automation of data storage, privacy and security. Without it, one cannot even imagine functioning properly, as nothing is done manually these days. Gone are those days when registers and log books were stored in vaults and high-security areas with guards guarding them like they were guarding a piece of treasure. Thus, it is important that there be automation of such important matters. And this can only be done with strong security systems operating in companies with proper audits and vigilance at regular intervals. There should also be an upgrade in technology. Most importantly, they should be a law-compliant company that ensures that nothing can go wrong where employee data security and storage are concerned. It becomes the moral, ethical and legal duty of the employee to protect every single employee working under their banner. 

References

• https://www.elevatus.io/blog/measures-for-hr-database/
• https://www.rippling.com/blog/employee-data-privacy-security-compliance
• https://sbshrs.adpinfo.com/newsletter/ten-ways-to-protect-sensitive-employee-information
• https://www.xref.com/blog/protecting-data-and-ensuring-candidate-privacy-in-hr
• https://www.uschamber.com/co/start/strategy/protect-employee-data-cybersecurity-tips
• https://securiti.ai/blog/hr-employee-data-protection/