In today’s digital landscape, protecting employee data has become more critical than ever. Organisations face escalating risks from cyber threats and data breaches, which can have severe repercussions for both organisational operational security, employee trust and sometimes, national security. Protection of employee data, like organisational data, is the responsibility of HR professionals, business leaders, and employees alike. Knowing how to secure HR data is essential not only for compliance but for preserving privacy and reputation. The following five key recommendations will help your organisation safeguard sensitive employee information effectively.

1. Conduct Regular Security Audits

Regular security audits are one of the most effective methods to identify vulnerabilities within your HR data systems. These audits provide an opportunity to pinpoint data (collection, processing, storage, access, and transportation) weaknesses before they become breaches, allowing for proactive implementation of necessary operational or strategic adjustments.

A comprehensive audit should evaluate both technical and procedural aspects of your data management. For example, assessing the security of your data storage systems is crucial, but you should also review employee access levels to ensure they are appropriate for their roles. Particularly attention should be given to data access as governed by employee Joiners, Movers and Leavers (JML) process.

Regular updates to protocols ensures compliance with data protection regulations such as the UK Data Protection Act 2018 (which incorporates the GDPR) or ISO/IEC 27001, the international standard for information security management.

Given the sophistication of modern cyber threats, it’s recommended to engage third-party experts to carry out these audits. Independent assessments bring fresh perspectives and can uncover risks that internal teams might miss. Ensure these audits are carried out quarterly or bi-annually, integrating them into your organisation’s wider risk management strategy.

2. Implement Strong Access Controls

Limiting access to sensitive employee data is a fundamental aspect of security. Implementing robust access control systems, such as Role-Based Access Control (RBAC), helps ensure that employees only access the information necessary for their job functions.

Clearly defining and regularly reviewing access levels is crucial. Access permissions should be adjusted whenever an employee’s role changes, and access should be immediately revoked when an employee leaves the organisation. Studies show that 80% of data breaches are caused by internal actors, underlining the importance of strict access controls.

Moreover, it’s essential to incorporate the use of evolving and effective technology as a means of access control management e.g. the use of multi-factor authentication (MFA) wherever possible, provides an additional layer of protection. This ensures that even if an unauthorised user gains access to login credentials, they cannot access sensitive data without the second form of verification..

3. Educate Employees on Data Protection

Human error is a major contributing factor in many data breaches. As such, investment in the education of employees on data protection best practices is an essential element of your security strategy. This includes providing training on the importance of password hygiene, recognising phishing and social engineering attempts, and following proper data-handling procedures.

Training programmes should be continuous, not just one-off sessions. Incorporating regular unexpected phishing simulations or social engineering tests can help employees better identify and react to common threats. A report from KnowBe4 (2023) found that companies with regular training on phishing attacks see a 70% reduction in successful attempts, demonstrating the significant value of a well-educated workforce.

In addition to training, consider setting up data protection champions within your organisation to promote security best practices and be a point of contact for questions or concerns.

4. Encrypt Sensitive Data

Two data of data are: At rest - When stored and not being processed or At Flight – when data is in transit or being processed e.g. during system-system interfaces.

Data encryption remains one of the most effective ways to protect sensitive data from breaches – either at rest or when in-flight. Encrypting data transforms it into unreadable text, meaning that even if unauthorised individuals access the data at rest or at flight, when the ‘man in the middle’ attacks usually take place, such accessed data will be useless without the corresponding decryption key.

Encrypt all sensitive employee data, whether it is at rest (stored on servers) or in transit (e.g., emails or cloud-based communications). Encrypting both files and databases provides a dual layer of protection, while employing TLS (Transport Layer Security) for data in transit ensures that information is protected when being transferred over the internet, interfaces, via USB, hard drives or even Bluetooth.

In addition to encryption, ensure that communication channels are secure. Use Virtual Private Networks (VPNs) for remote workers and encourage the use of end-to-end encrypted communication tools like Signal or WhatsApp for Business when discussing sensitive HR matters.

5. Establish an Incident Response Plan

Despite your best efforts, no organisation is entirely immune to data breaches. That’s why a comprehensive and well-rehearsed incident response plan is crucial. This plan should outline detailed steps to take when a breach occurs, including how to contain the damage, notify affected individuals, and comply with legal obligations under GDPR and the UK Data Protection Act.

Research from IBM's Cost of a Data Breach Report 2024 highlights that organisations with a defined incident response plan can reduce the financial impact of a breach by approximately $2.2mil. These plans should involve both technical and non-technical teams, ensuring that all stakeholders, including legal and communication teams, are prepared for quick and coordinated action.

Moreover, regularly test and update your incident response protocols. Conducting mock breach scenarios or tabletop exercises will help you assess the effectiveness of your plan and improve preparedness for actual events.

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Though still emerging and not fully grasped, however, the incorporation of AI (Artificial Intelligence) in the implementation of the above 5 steps or any data breach mitigation step, is envisaged to significantly optimise the intended results. Please read the IBM’s 2024 report - Cost of a Data Breach Report 2024.

Summary of Strategies

As the volume and sophistication of cyber threats increase, safeguarding HR data is more than a regulatory requirement—it’s vital for maintaining the trust and privacy of your employees. By implementing these five critical strategies—regular audits, strict access controls, comprehensive employee training, encryption, and an effective incident response plan—you can significantly reduce your organisation's risk of data breaches.

The evolving nature of cyber threats means you must stay vigilant and continuously update your data protection strategies. By prioritising data security, you mitigate risks, foster a culture of accountability, and reinforce trust among your workforce, safeguarding the very foundation of your organisation.

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Recent Developments:

• AI and Machine Learning: New developments in artificial intelligence (AI) and machine learning (ML) are rapidly changing the cybersecurity landscape. Many businesses are now using AI-driven security tools to detect anomalies in real time, providing an additional layer of protection. According to a Forrester report (2023), organisations using AI for threat detection experience 55% faster identification and 30% reduced recovery costs.

• Remote Work Security: The rise of hybrid and remote working models has introduced new challenges to HR data protection. Zero Trust Architecture (ZTA), which assumes no user or device is trusted by default, is becoming an increasingly popular framework to secure data in this new normal. The UK's National Cyber Security Centre (NCSC) now recommends ZTA (Zero Trust Architecture) as a best practice for organisations dealing with sensitive information. Read more on NCSC ZTA recommendation here.

Contact us for: Training on organisational data protection or Review of data architecture.

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