Guide to Safeguard Your HR Data Confidentiality

The confidentiality of sensitive employee data such as social security numbers, performance reviews, workplace injury reports, background checks, health-related information, pay levels, etc., must be upheld at all times. Employers must set up processes and procedures to secure and safeguard sensitive employee data and notify employees of any breaches of this confidential information in order to comply with legal obligations.

In addition to protecting sensitive employee information, HR must maintain confidentiality about management or business information, that could consist of corporate tactics and procedures, job losses or factory closures, and other confidential information.

- When internal investigation occurs
In circumstances like employment investigations, performance evaluations, and disciplinary measures, confidentiality is also essential. When specific information needs to be shared with others in order for all parties involved to be heard and all relevant information to be considered, maintaining secrecy can be very difficult. An HR professional must be able to combine protecting employee privacy with conducting an investigation.

- Cybersecurity threat
HR data is often some of the most sensitive information within a business. It contains facts about each of your employees, including their addresses, use of benefits, and financial information. You might occasionally keep a record of their marital status and family situation on hand.

One reason you might be hesitant to outsource your HR duties is due to this. Monitoring cybersecurity within your own company is challenging enough; let alone within another one. Can you really rely on them to handle and protect the information about your employees?

Worry not, you can successfully outsource HR and hold data security to a high level. With an HR provider, your data can be safer. That's because they're investing more in security because they have numerous clientele to safeguard. When doing it in-house, you might not have the same budget to dedicate to security. You could enhance the security of your data by working with an HR service provider.

By choosing the best outsource service provider, you could prevent any unauthorized usage of your intellectual property. Be sure you work with a reputable HR service provider. Implement written agreements with the external service provider regarding the use, transfer, and/or sharing of their data for the purposes specified in the contract. KPSG can do it all for you, contact us for further information.