As we move further into the digital age, many businesses are incorporating the use of Human Resource Management Systems (HRMS) into their business operations. These systems streamline HR processes with several functionalities like payroll and benefits management, performance tracking, and employee engagement tools. However, like with any digital platform, HRMS solutions have their own drawbacks, particularly around data security.
Since businesses process employee data through these systems, they should prioritise safeguarding it. Data breaches and cyberattacks can have severe consequences, ranging from financial losses to reputational damage and legal repercussions. This makes HRMS and data security two sides of the same coin!
Why Data Security in HRMS is Crucial
An HRMS typically stores a vast amount of sensitive employee information, including:
- Personal identification like NRIC numbers
- Home addresses
- Bank account details
The Personal Data Protection Act (PDPA) in Singapore imposes strict regulations on how personal data must be handled. By securing your HRMS, you do not only protect your employees, but your company from legal consequences too.
Vulnerabilities in HRMS Systems
Now that you know how to protect your HRMS, let’s look at the threats and vulnerabilities that hackers are likely to exploit:
- Weak Passwords: Employees tend to use easy-to-guess passwords, increasing the risk of hackers gaining unauthorised access to your company’s system.
- Unpatched Software: Failure to regularly update your HRMS with the latest security patches can leave your system vulnerable to hackers.
- Phishing Attacks: Hackers often use phishing emails to trick employees into disclosing their credentials or downloading malware that can give them access to the system.
Key Elements of Securing Data in your HRMS
Full encryption of data in your HRMS is crucial in guaranteeing that employee information is protected. Some of the most important factors that you should consider when protecting data on your HRMS include:
- Encryption
Encryption renders data unreadable to unauthorised users, even to those who gain access to the system. There are two main types of encryptions that should be applied to your HRMS:
- Data at Rest Encryption: Encrypting data that is stored within your HRMS database.
- Data in Transit Encryption: Encrypting data as it is transferred between systems and devices.
- Access Control
Implementing role-based access control enables you to assign access rights according to your employees’ roles in the company. This means that only people such as HR managers and payroll administrators can access sensitive information. By restricting access to only those who need it, you reduce the chances of data leakage or misuse.
- Two-Factor Authentication (2FA)
In addition to entering a password, users must verify their identity through a 2FA, like a one-time code sent to their mobile device. Hence, even if a hacker manages to steal an employee’s password, they will still need access to the 2FA code to gain access to sensitive information.
Measures for Maintaining HRMS Security
While technical solutions are critical, they should be accompanied by security measures to ensure comprehensive HRMS security. A few practices that should be part of your HRMS security strategy include:
- Regular Software Maintenance
By updating your HRMS software, you reduce weaknesses or vulnerabilities that hackers can be exploit. Ensure that your HRMS provider offers timely updates, and your IT department is implementing them on a regular basis.
- Employee Training
Regularly educate your employees on recognising phishing emails, creating secure passwords, and avoiding suspicious links. Hackers just need a single employee to click on a malicious link to provide them the opportunity for a full-blown cyberattack. Thus, ensure all employees in your company are aware of the risks and know how to mitigate them.
- Risk Management
A good backup and disaster recovery plan ensures that, in the event of a breach or system failure, you can quickly recover your data and resume operations. It is recommended to test your recovery plan periodically to make sure it works.
- Data Minimisation
Only collect and store the data you absolutely need. The less data you store, the less exposed you are in the event of a security breach.
Choosing the Right HRMS for Your Business
While implementing internal security measures is critical, selecting the right HRMS provider plays a pivotal role in ensuring data security. HRMS software providers such as Info-Tech and DigiSME are committed to offering secure solutions that protect your data while streamlining your HR processes.
DigiSME’s HRMS software is developed with data protection in mind, offering a comprehensive set of features that are easy to use with robust security measures. DigiSME guarantees the protection of your sensitive data through advanced security protocols such as:
- End-to-End Encryption: Encryption is employed by DigiSME uses to safeguard your data, ensuring it remains secure during storage and/or when being transferred between systems.
- Regulatory Compliance: DigiSME’s HRMS aligns with PDPA, ensuring that your company stays compliant with legal standards for processing employee data.
- Role-Based Access Control: DigiSME provides role-based access, allowing you to control who has access to certain data to minimise the risk of data breaches.
- Regular Updates: DigiSME regularly releases security updates to keep your HRMS software protected from new threats and risks.
In an era where data breaches are becoming more frequent and complex, it is essential to properly secure your HRMS. Ultimately, HRMS security isn’t just about a compliance issue—it’s about building trust, ensuring business continuity, and protecting your employees. By taking a proactive approach to data protection, you provide a safer workplace for your employees and business.
To learn more about DigiSME’s HRMS software and what it can offer you, contact +65 6964 7611 or email salessg@digi-sme.com.