Compliance and data security

Ensuring compliance and robust data security is essential for protecting sensitive information and mitigating risks such as data breaches, financial penalties, and reputational damage. As regulations like GDPR become more stringent, businesses must adopt secure systems to safeguard employee and business data.

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Effective HCM compliance and security

Effective compliance and security measures not only reduce risks but also build trust with employees, customers, and partners, ensuring long-term business success. For Human Capital Management systems, the need for secure and compliant solutions is even more critical, as they manage large volumes of personal and financial data.
Security is a multi-faceted area, and any platform you consider should adhere to the highest standards. A SaaS platform is the norm, and it must incorporate multiple levels of security:

  • Protect access: Safeguard how users log in to the system.
  • Protect data: Ensure employee and business data is secure.
  • Protect servers: Use secure hosting environments.
  • Certification: Have official certifications that validate security standards.
management-payroll-software

Access Security

Government standards recommend using Single Sign-On (SSO) and Multi-Factor Authentication (MFA) for secure access. The platform you choose should support both of these and allow flexibility in setting password rules, authentication methods, and security parameters.

MFA: This adds an extra layer of protection. Personally, I find authentication apps on phones to be the most secure and convenient option. They allow you to use facial recognition to open the app and provide a rotating code to log in. Alternatives like email or text verification also work but may not be as robust.

SSO: This enables employees to use the same login credentials they use for their work PC, email, and other systems. While setting up SSO can be complex, your IT team should be able to assist.

Data Security

In accordance with UK GDPR laws, your solution must meet stringent requirements for protecting employee data. A great system will also allow you to:

  • Set data retention policies, defining how long data is stored and how access changes when an employee leaves.
  • Ensure compliance with rules that give former employees access to certain data for a limited period after they leave.
  • EU, such as in the USA, ask about the protections in place.
  • Data storage location is another critical factor. Ideally, your data should be stored within the EU or UK to ensure it is protected under local data laws. If data is stored outside the

You need to know how vendors handle such situations and ensure your data is treated with the same level of security as if it were stored in the UK or EU.

System Security and Permissions Role-Based Access Control 

A good system should also have security profiles, enabling you to customise access for every level of user. For example, a standard business structure might include employees, managers, regional managers, and directors. Here’s how permissions could look for a Time and Attendance module:

Attendance module

Key Security Questions to Ask Providers

Security is just one aspect to consider before exploring software features. A truly great solution will go beyond compliance, offering customisation, flexibility, and transparency in all aspects of security. When evaluating a vendor, ensure you ask the following:

Third-party aggregators: Which other software and companies have access to your data?
Disaster recovery policy: What is the recovery process in case of a disaster?
System updates: How frequently are updates performed, and how long is downtime?
Data breaches: How many breaches have occurred in the last five years?
Stress testing: What are the results of stress tests, and how often are they conducted?
Customer collaboration: How often do feature roundtables or R&D discussions involve customers?

 Human Capital Management Buyers Guide Index

Below, you’ll find an overview of each section, with links to the full content for deeper insights.

Introduction & Planning

Below, you’ll find an overview of each section, with links to the full content for deeper insights.

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HCM Core Components

Find out all you need to know on the essential elements that make up a comprehensive HCM system.

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HCM Functionality

Exploring the key features that drive workforce efficiency and engagement.

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Time & Attendance

Payroll

Access Control

Scheduling and workforce management

Recruitment and onboarding

Performance management and succession planning

Selecting an HCM Provider

Choosing the right provider is just as important as selecting the right software.

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Sales process and RFQ/RFP considerations

Sign off

Implementation & Success

Rolling out your HCM system smoothly and ensuring long-term success.

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Building an implementation team

Training

Budgeting and timeline considerations

Employee adoption and change management

Transitioning to Accountability: Change Management

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