Ensuring Data Privacy in HR: Best Practices and Tools

Every HR department of an organization has data at its disposal. Since data is a powerful resource, HR manager responsibilities include maintaining the highest standards of data security too. Fortunately, HR managers are not alone in this battle. They work with trained cybersecurity experts and some of the best data privacy software tools. We will mention some of such tools in this article, but first, let’s discuss the best practices to ensure data privacy in HR – after all, safeguarding employees’ privacy security is not just about the software, but also about discipline and fine-tuned work policies.

Regularly Update Operating Systems & Software

Data safety starts with regularly updating operating systems and software. Most HR departments can do that all on their own, but large companies can assign that to dedicated tech teams. In any case, software updates often provide patches for potential security vulnerabilities and a tech team can introduce security patches if the budget does not allow for a complete ‘makeover.’

Some great examples of patch management tools include: SolarWinds Patch Manager, Ivanti Patch for Endpoint Manager, or ManageEngine Patch Manager Plus, and automated updates can streamline this process. They can ensure timely installation of the most important updates.

Enforce Password Best Practices

It’s up to the HR department to enforce password practices all employees should adhere to. When each account has a strong, unique password, the risk of unauthorized access to sensitive information is minimized. Multi-factor authentication (MFA) security processes can be of great help, even though this policy does not apply to every business niche.

Some great password managers anyone can use include LastPass, 1Password, and Dashlane. Regardless of the company specifics, even employees who are not very tech-savvy should not have much difficulty with those.

Implement User Permissions and Access Control

When defining specific access levels, HR departments implement access control and user permissions. They ensure that every employee accesses only the information they need for their role. This significantly minimizes the risk of potential data breaches and unauthorized access. Role-based access control (RBAC) and attribute-based access control (ABAC) are the most effective managing permissions strategies. It’s also essential to regularly review and update access rights according to employment status and role changes.

The best RBAC and ABAC software solutions are Microsoft Azure Active Directory (Azure AD), AWS Identity and Access Management (IAM), and Okta. Choosing reliable software is very important because many large corporations, including Google that we all use for work, will only work with reputable third-party apps.

Comply with Data Protection Regulations

Your company’s HR department should always comply with data protection regulations to maintain organizational integrity. This compliance involves adhering to regulations like GDPR, HIPAA, and CCPA. These laws dictate how to collect, store, and manage data. Keep in mind that compliance with data protection regulations includes regular monitoring of new legal practices because these regulations are still in their budding stages and are prone to change. So, like all security measures, compliance with data with data protection regulations is a continuous process.

Encrypt Sensitive Data

Another fundamental practice of ensuring data privacy in HR is encrypting sensitive data. Encryption is the process of transforming readable data into code that only appropriate decryption keys can access. By encrypting sensitive and personal employee information, HR departments can protect data not only in transit but also at rest.

Some of the best encryption software tools are VeraCrypt, Symantec Endpoint Encryption, and BitLocker. Strong encryption protocols and regular encryption updates enhance security and protect important HR data against potential cyber threats, maintaining employee trust, too.

Keep HR Department in Sync with IT Team

An organization’s HR department cannot ensure data privacy if it doesn’t collaborate with the IT department. Both teams should be aligned on compliance requirements, security protocols, and data management practices. The HR department provides insights into sensitive employee data, whereas the IT department implements technical controls and protection measures.

Regular meetings and clear communication channels help deal with vulnerabilities, update security measures, and respond to any incident promptly. Developing and reviewing data protection policies jointly ensures that every aspect of data privacy is covered. This cohesive approach doesn’t only help protect sensitive information, it also enhances security and supports regulatory compliance. Besides, both departments should give advice to management about what software to buy.

Mitigate Third-Party Security Risks

The HR department of your company could not protect its data without properly mitigating third-party security risks. For starters, they should assess and monitor the security practices of partners and vendors who access the organization’s sensitive information. This practice is possible by conducting thorough risk assessments, regularly reviewing third-party compliance with data protection standards, and establishing clear security requirements in contracts.

Like the other departments, the HR department should implement encryption, access controls, and audit mechanisms to mitigate potential risks to third parties. Proactive management measures should also be in place, as conducting regular audits of third-party relationships and any associated risks is essential. By managing these external security risks, sensitive HR data stays protected from potential breaches.

Conduct Regular Penetration Tests

Regular penetration tests identify weak areas and help keep the HR systems of an organization safe. These simulate cyberattacks to uncover any potential weaknesses in security defenses. When conducting penetration tests, HR departments ensure that the network, applications, and all other systems don’t have any flaws. The best penetration test tools are Kali Linux, Burp Suite, and Metasploit Framework.

Your HR department’s defenses should be proactively tested to detect any vulnerability before a malicious party exploits them. Through regular testing, HR departments ensure that their security measures are up to date and effective. They also gain insights into potential security gaps. Security routines should include penetration tests to help protect sensitive HR data, maintain regulatory compliance, and enhance overall resilience against cyber threats.

Train the HR Staff in Data Security

Lastly, a company should train its HR staff in data security if it wants to protect its sensitive data. These training sessions should take place regularly and cover key topics like recognizing phishing attempts, understanding data protection regulations, and managing passwords securely. Everyone in the staff department should know how important confidentiality, safe handling practices, and data encryption are.

Simulations and practical exercises can enhance awareness and response skills. Ongoing training ensures that HR professionals are always up to date on the best security data practices and emerging threats. Organizations that foster a culture of security awareness empower their HR staff to safeguard personal data effectively, mitigate risks, and maintain data privacy standards compliance.

Best Tools for Ensuring Data Privacy in HR

The HR department of an organization could not ensure data privacy of employees without the help of software tools that offer data privacy solutions. Here are some of the best tools explained:

Workday: comprehensive HR management solution, that includes employee data management, payroll, compliance tracking, and security.

SAP SuccessFactors: extensive HR software solution that offers multiple tools for managing employee records, performance, and compliance.

BambooHR: offers essential features for onboarding, managing employee information, performance, time-off tracking, and reliable access controls.

Oracle HCM Cloud: powerful HR platform for managing employee data, talent, payrolls, and GDPR compliance tools.

ADP Workforce Now: offers tools for payroll, talent management, benefits administration, and compliance, while incorporating the most powerful security measures and role-based access controls.

Takeaway

Whether you run a small business or a large organization, ensuring data privacy in the HR department is a must. Since the digital environment is not at all safe, it’s very important to implement the best security practices and use powerful data safety tools. Hopefully, some of the above suggestions will help your sensitive data stay safe!