Human Capital Management (HCM) systems are the backbone of modern HR, but they also hold a treasure trove of sensitive employee data. While these platforms simply HR processes by handling everything from payroll to performance reviews – the vast amounts of sensitive employee data they store makes them a target for cybercrime. And with an increase in those threats, data protection has never been a more critical concern for businesses worldwide.
The True Cost of HCM Data Security
The recent statistics are worrying: employee data breaches have jumped by 41% in 2023, marking a five-year high. This dramatic increase demonstrates the urgent need for stringent security measures, particularly in HCM devices.
The consequences of a data breach are far-reaching. The resulting mess has a long-term impact, from reputational damage and losing employee trust to the financial implications of disrupted operations, fines, and potential legal cases to answer.
And let’s consider those costs; last year’s IBM study put the average price of a data breach in the UK at £3.4 million. While in the US, that number rises to a staggering $9.48 million (£7.2 million). With figures like that, it’s clear that data breaches can put an entire organisation at risk.
Key Data Security Concerns
Effective protection can only come from fully understanding the threats facing HCM devices and systems. Three key risks stand out:
Unauthorised Access to Employee Information
HCM systems contain a wealth of sensitive data, including biometrics, payroll information, and other highly personal data. This information is valuable to bad actors, and without robust security in place, it is vulnerable to theft.
Data Breaches and Cyber Attacks
All businesses face increasingly sophisticated cyber attacks. Ransomware, in particular, has seen a significant rise, specifically with attacks targeting employee data growing by 57% last year.
Non-compliance with Data Protection Regulations
Complex data protection regulations are getting harder to navigate, and with GDPR (General Data Protection Regulation) setting out strict rules for handling data in Europe. The penalties for non-compliance are eye-watering – up to €20 million or 4% of global turnover, whichever is higher. But it’s not just the financial ramifications that can derail a business, but the reputation ones. Data breaches make for sensationalist news that can last long after the event itself.
Ensuring HCM Data Security
In order to protect itself against these risks, a business must implement strong security measures. Such measures include;
Secure Access Controls and Authentication Methods
Gone are the days of using just a password. Multi-factor authentication must be standard practice. This method reinforces a password with a second action, such as authentication via a mobile device or by using biometric data.
Additionally, a business can invest in role-based access control. The risk of internal data breaches – even accidental ones – can be significantly reduced when access to sensitive data is ringfenced by a person’s job role.
Regular Software Updates and Security Measures
Cybercriminals can’t be accused of being lazy. In response to the increase in security measures, they continually look for new and creative ways to gain access to systems. Regular software updates and patch management are critical in keeping ahead of these threats. Missing updates and lax security create easy routes in, leaving your organisation vulnerable to attack.
This practice requires a systematic approach:
– Frequent vulnerability assessments
– A defined process for testing and deploying updates
– A strategy for addressing zero-day vulnerabilities
– Review and update your data breach response plan
Employee Training on Data Security Protocols
Your staff can be one of two things: your strongest defence or your greatest vulnerability. You must invest in regular, engaging training to cultivate a security-conscious workplace culture to avoid being the latter.
Effective training should be:
– Ongoing and frequently reinforced
– Tailored to specific roles and responsibilities
– Interactive and scenario-based
– Updated to address new threats
Modern Security Features
Here are some ways to ensure your employee data is best protected:
Encryption and Secure Communication: All data, whether stored or in transit, should be protected by encryption. This ensures that intercepted data remains unreadable to unauthorised parties.
Biometric Security: Use biometric technology. Facial recognition systems enhance security through contactless operation, allowing for clock-ins in less than a second without touching the device.
Centralised Management: The GTConnect platform serves as a unified command centre for security management. It enables real-time monitoring and swift deployment of security updates across all connected devices. This cloud-based solution also facilitates remote diagnostics and data management – crucial at a time when workforces are increasingly distributed across multiple locations.
Adaptive Security Measures: Recognising the ever-changing security landscape, Grosvenor’s solutions evolve with emerging threats. This proactive approach helps organisations anticipate and reduce potential security risks.
Grosvenor Technology’s Approach to HCM Data Security
Through our comprehensive approach to safeguarding sensitive data, we have established ourselves as a trusted provider of secure HCM technology and hardware worldwide.
Trusted by Global Businesses
Our reputation is built on more than thirty years of expertise. Major global businesses rely on our solutions to manage and secure employee data. This trust stems from robust security features and a deep understanding of HCM-specific challenges.
Meeting Industry Standards and Regulations
Our solutions are designed with regulatory compliance at their core, helping organisations navigate complex data protection requirements.
Our systems support GDPR compliance through features like:
– Data minimisation tools
– Consent management
– Efficient breach notification processes
– Identity management features that securely manage biometric and personal data across networked devices
The GT8 as an Example
Our flagship HCM device, the GT8, exemplifies our dedication to safeguarding sensitive workforce data.
Built with security as a top priority, the GT8 features:
- Encrypted file system
- Secure boot process
- Hardware-backed key storage
- Advanced biometric capabilities, including facial recognition
This multi-layered approach provides a powerful defence against both physical and digital threats, ensuring your peace of mind.
Prioritising HCM Security
Businesses need to prioritise the security of their HCM devices. While the risks are significant, implementing robust security measures, maintaining regulatory compliance, and investing in advanced technologies can create a secure foundation for HCM operations.
Effective HCM security extends beyond preventing breaches. It builds trust with employees and stakeholders, enabling businesses to operate confidently in a complex digital environment where new attack vectors are always emerging.