How Secure are HRM Solutions in the Era of Cyber Security and Data Frauds

Whilst innovative, smart technologies have certainly made life convenient and easier for us, it has also paved the way for multiple threats like hacking, security breach and data theft. As per reports, losses from cybercrime skyrocketed to almost $1 trillion in 2020. Cyber security violations are a big threat to organisations and can incur big losses for businesses.

The HR department is entrusted with some of the most sensitive data and key details related to employees. Therefore, to mitigate the risk of any threats, HR teams need to be equipped with some of the best applications and tools to treat employee data with the care it deserves. That’s where HRM solutions can play a big part. With up-to-the-minute intelligence and hi-tech security, today's HRMS tools are equipped to secure private employee data and ensure global regulatory compliance.

Technology’s Role in Combating HR Data Threats

Recent research has shown that HR leaders are putting in more time and resources towards data security. According to Sierra-Cedar HR Systems survey 2019-2020, there has been a 17 per cent increase in the number of respondents utilising cybersecurity strategies as compared to the previous year.

Any loss or threat to sensitive employee data such as payroll information, healthcare details, home address, contact information or date of birth has implications well beyond the HR department. It’s not just the personal employee data, the entire enterprise faces risk from data breaches or cyber threats, since human resources are central to different processes throughout the organisation.

However, thanks to the inception of AI-powered tools, HR departments are now able to protect private organisational and employee data to a big extent. Some of these technologies have the ability to protect against automated malware attacks by recognising patterns that can identify doubtful behaviour and block threatening online traffic or potential problems in real-time. Companies are also embracing ‘zero trust’ policies that use multifactor authentication for identity authentication or network access. MFA confirms user identities with at least 2 different factors.

With many organisations supporting a hybrid model of work after the pandemic, HR leaders are also investing in digitised experience monitoring tools gather operational data from the device of a user and proactively come up with an alert to indicate performance bottlenecks as well as identify the gap between perceived and expected user experience.

Keeping Data Secure with Digital HRMS

Cutting-edge HRMS provides advanced security features to make sure use data stays secure, both On-premise and cloud. HRMS security features cover nearly every aspect of sensitive data security including physical security, encryption of data, controlled access, internal security controls, etc.

Here are some of the key features of digital HRMS which ensures proper use and protection of data without any privacy or data security risks:

• For high-level data protection, HRMS hosts information on the cloud that
helps in the management of critical data in the event of any disaster. Even
in the face of any real catastrophe, businesses can expect continued
information flow as data is never lost.
• For next-level data protection, HRMS tools employ IP and port-based
restrictions along with communication using SSL protocol.
• Systematic data backups across different places and backup upgrades
throughout the entire day ensure that confidential and critical data is
never lost and can be accessed from anywhere, at any time. Also, periodic
automatic data checks allow HRs to assess outdated data and decide whether
or not it should be kept.
• Automated data checks are also performed by HRMS tools to discover potential
vulnerabilities and reduce the risk of data breaches.

Compared to On-premise HRMS software, the cloud-based HRMS is quite easier to integrate with the existing system. On top of that, it is user-friendly and requires less effort and time to train people to use it. With On-premise HRMS, significant effort is required for maintenance and upgrades.

Concluding Thoughts

Data is one of the crucial assets of an organisation and to keep HR data safe and secure, it is not only enough to invest in a modern HRMS but ensure constructive collaboration between business owners and HRMS vendors to achieve the desired results. During the implementation of HRMS, every concerned party like employers, vendors and managers should work together to tackle the security parameters efficiently.