A critical concern for businesses in today’s digital era is data security. The size of the business does not matter in this case as every company relies on HR software for managing sensitive information regarding their employees.
Therefore, it is of paramount importance to ensure the security of such data. Especially in today’s world where cyber threats and data breaches are happening now and then, safeguarding data has become crucial.
In this article, we shall discuss about the importance of data security in protecting employee information.
Defining HR Software:
HR software is the digital solution opted by businesses to optimize the tasks of human resources daily. It helps in increasing the efficiency of the HR team of an organization. This is done by a centralized file database, collaboration technologies, and automated workflows.
Why is data security required for HR Software?
Protection is important for anything that comprises sensitive information. Why is there an OTP system for transactions? Why do we have protection in our emails and phones? For protecting user information, these are necessary. Similarly, all relevant and necessary information regarding an employee is stored in HR Software such as bank details, address, family details, educational details, digital signature, record of attendance, identification proof, passport details, and record of previous employments. Now if a hacker can get access to such information, imagine the troubles that the company will have to go through. Hence it is necessary to safeguard such data from unauthorized access with robust data security measures.
Identifying data security threats:
The threats to data security are evolving and becoming complex every day. Such threats are to be identified and comprehended so that robust security measures can be implemented. Some of the common data security threats are as follows:
- Unauthorized access: A person gaining unauthorized access to a database where all information is stored can disrupt the system. Such a person can retrieve, alter, or delete all information as they please.
- Malware attacks: HR solutions can be infiltrated by malicious software thereby affecting data integrity. The data of HR software can also be encoded by ransomware attacks where a ransom has to be paid for gaining access of the data.
- Phishing: Phishing is another technique where deceptive tactics are used to trick the HR individual of a company. The scammer can appear as a genuine company, a public institution, or a legit company, for obtaining sensitive information or gaining unauthorized access.
- Data leakage: Such a situation can occur when there is a leakage of data because of problems such as server issues, software vulnerabilities, or misconfiguration. Since this happens entirely because of technical difficulties, it is usually seen as an unintentional attack.
- Insider threats: It is not always necessary for the attacker to be someone unknown to the organization. An insider can also be an attacker. An insider threat that leads to a data breach is the attack by a person who has authorized access to crucial information of an organization.
The importance of data security:
- Safeguarding sensitive information: A huge amount of sensitive data is stored in Cloud-based HR Software that includes personal information such as details of bank account, salary information, and social security number. The security of such data must be ensured to protect the privacy of employee information and prevent financial fraud and identity theft.
- Preserving employee trust: Employees trust their employers with their personal information with the expectation that such information will be handled responsibly and securely. This trust is broken between employees and employers when there is a breach of data security. This also results in decreasing employee morale, retention rates, and productivity.
- Regulatory compliance: The data handled by HR Software falls under stringent regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States or the General Data Protection Regulation (GDPR) in Europe. When there is failure to comply with these regulations, it results in severe penalties and an ill reputation for the organization. Therefore robust data security measures are necessary for meeting the regulatory requirements.
- Protection against data breaches: The prime targets of cybercriminals are HR databases as they can gain access to sensitive information either for financial gain or for malicious purposes. In the event of a data breach, there are significant reputational and economic consequences for an organization. It can lead to various forms of cybercrime such as identity theft and financial fraud. Robust security measures can prevent such unauthorized access to sensitive information.
- Intellectual property protection: Apart from the personal data of employees, HR software also contains vital information about the organization. Confidential information such as trade secrets and employee performance evaluations are stored in HR Software. For safeguarding the competitive advantage of the organization and preventing insider threats, such information is to be protected.
- Continuation of HR operations: HR processes such as employee management, payroll, and benefits administration can be disrupted when there is corruption due to security breaches. To ensure the continuity of HR operations, sufficient measures of data security are required such as disaster recovery plans and regular backups.
To enhance data security, there are several practices that organizations need to follow.
- Conducting security audits regularly: When regular security audits are conducted, they help in recognizing the vulnerabilities of the HR solutions of an organization. This includes evaluating network configurations, system configurations, and access controls.
- Employee training: Employees must be educated about security best practices through regular training sessions. Employees must be trained to recognize phishing emails, understand social engineering tactics, and report any suspicious activity. This enables in development of a security-conscious culture within the organization.
- Multi-factor authentication (MFA) implementation: For accessing HR Software, multi-factor authentication should be employed. An extra layer of protection is provided by MFA wherein users will have to provide additional verification factors for accessing information. This includes a one-time password, fingerprint, or a verification code sent by SMS. The risk of unauthorized access is significantly reduced by the implementation of MFA.
- Regular data backups: To ensure data integrity and security, a regular data backup strategy must be implemented. Backups should be stored in a separate location so that the risk of data loss can be minimized in the event of cyberattacks, natural disasters, or system failures.
- Role-based access controls (RBAC): To ensure that employees only have access to necessary data based on their job role, implementing RBAC is necessary. When there is limited access to information, the probability of unauthorized access to important data is reduced.
- Robust password regulations: Strong password policies should be enforced for accessing HR software. Complex passwords that are not easy to guess, must be created by employees. For securely storing and managing passwords, the usage of password managers is to be promoted.
- Secured data conveyance: Ensure data transmission is done securely within networks. SSL/TLS encryption protocols are to be implemented to protect data during transit. This is especially important at times when HR data is accessed remotely or when sensitive information is transferred.
It has become a necessity to protect your data in today’s world when data breaches have become such a common issue. Organizations can safeguard sensitive employee information and prevent data breaches, with the utilization of strong security mechanisms, adherence to industry best practices, and preservation of regulatory compliance. Investment in data security not only protects vital employee information but also protects the reputation of the organization in the marketplace.
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