Sara Yahia: “Being compliant doesn’t mean slowing down innovation”

Human Resources leaders are facing new technologies, laws, and expectations. In this conversation, let's ask Sara Yahia, HR expert and author, for her take on it, sharing the lessons she’s learned and the challenges she’s seen firsthand on how to move forward with both confidence and care.

Q: How does Human Resource Management Systems (HRMS) contribute to compliance management?

Sara Yahia: HRMS has become indispensable in tracking and regulating compliance. For example, automated record-keeping using HRMS tools helps meet requirements under labor laws. I've previously noticed inconsistent record retention across departments. But, as soon as I implemented a centralized HRMS, it became significantly easier to comply with statutory mandates under the Fair Labor Standards Act (FLSA) and General Data Protection Regulation (GDPR), which flagged outdated data and managed policies effectively.

Another vital HR area is compliance training. Integrating learning management modules that track who completed mandatory sessions on workplace harassment, ethics, and data privacy is essential, especially for large companies. This enhances training completion rates and serves as documentation in the event of investigations.

Q: How to address rising data privacy and security risks?

Sara Yahia: I am aware that it's a delicate aspect of HR. For this reason, collaborating with the legal department is a wise move and a prudent reflex to have. It's no secret that HR departments handle extremely sensitive data, such as Social Security numbers, bank details, and health information. I'm pretty flexible and open about “making mistakes” as I see it as a learning opportunity. But, when it comes to confidentiality, there’s no room for compromise or errors. I learned this the hard way early in my career, when a cloud-based HR tool we were using experienced a minor data leak, all because of a simple misstep in access settings. It's when I discovered the importance of layered security and regular audits. From that experience, I always remind my team that it's better to prevent an unfortunate situation than to be sorry.

So, if a company wants to mitigate risks, I would highly recommend implementing end-to-end encryption, strict access protocols, and regular penetration testing. What’s equally important is employee awareness. In one firm I advised, a simple phishing email could have exposed thousands of employee records. We launched a quarterly “security hygiene” program, educating HR teams on red flags and cyber practices, which reduced security incidents by over 60% in a year.

Q: With emerging technologies like blockchains and biometrics entering HR, what legal implications should HR leaders consider?

Sara Yahia: These technologies carry promise and risk. Let's talk about Blockchain, for instance. It offers tamper-proof record-keeping. It's an excellent fit for credential verification and employment history. However, Blockchain keeps records permanent, which conflicts with laws that require data to be deleted, such as the “right to be forgotten” laws under GDPR.

Similarly, biometric data (used in attendance systems or for secure access) raises serious concerns under laws like the Illinois Biometric Information Privacy Act (BIPA). During a consulting project, I witnessed a client going against my advice and rolling out fingerprint-based time tracking without obtaining proper consent, causing legal and credibility damage. I can’t stress this enough: innovation should not outpace legal frameworks, and counsel must be involved in the tech selection and implementation.

Q: How should companies balance efficiency with compliance when automation is transforming HR tasks?

Sara Yahia: I’m all for automation that helps work smarter; it’s a valuable tool. But, I often remind my colleagues that relying on it blindly can be risky. When professionals stop questioning the systems they use, it opens the door to mistakes that can have real and serious consequences. For example, resume filtering algorithms unintentionally discriminate against candidates, lose talent, and violate Equal Employment Opportunity (EEO) laws. A company I supported had to rework its hiring Artificial Intelligence (AI) setup after discovering it systematically rejected older applicants due to biased data.

HR professionals must be aware that each new technology that eases some part of their work shouldn't dismiss the challenges it brings. Relying entirely on technology is not the solution and puts the company at risk. This is why regular audits of automated decisions must be one of the department's priorities. Let's not forget that algorithms must be transparent and monitored for compliance with anti-discrimination laws by automating policy enforcement (flagging non-compliant bonus calculations or contract expirations) to reduce human error and ensure alignment with internal and external regulations.

In the end, HR must approach technology with a dual-lens: efficiency and ethics.

Related Articles Written By Sara Yahia:

HR Technology Trends - The HR Observer

Everything About Employee Relations - HR Gazette