Data breaches are damaging and expensive headaches for any business. HR and payroll teams especially understand the fallout that can happen if the sensitive data they work with every day  gets into the wrong hands. But despite this knowledge, security incidents can still happen. 

Consider companies like UKG, PrismHR, Apex Human Capital Management, and ART Payroll, which all recently experienced data breaches or ransomware attacks that created severe problems for their clients. Small businesses can fare even worse from a cyberattack, with 60% going out of business within six months of the attack.

You can avoid devastating data breaches and cyber attacks when you choose an HR and payroll technology provider that makes it job number one to keep your data safe and help your business steer clear of potential threats. Here are several signs that your provider is committed to data security.

They have HR data security experts

Any technology solution has to have numerous built-in security features these days. But with the pervasive and ever-changing nature of cyber threats, it’s also important to have cybersecurity experts on hand who understand what’s happening out in the world and know what to watch out for. They can closely monitor servers and databases for any number of potential threats. 

A security-conscious HR and payroll tech provider has dedicated security experts on staff who can supplement their system’s security features with monitoring capabilities and alerts to enable secure HR data management.

They use encryption

HR and payroll technology stores sensitive employee information like social security numbers and bank account details, along with other valuable personnel- and payroll-related information, in databases and servers. When that data is transmitted from one place to another, it’s ripe for hacking unless the system is able to encrypt the information — or scramble the readable data — in transit. 

The right HR and payroll tech provider offers a protection method like SSL in their system to encrypt plain sensitive text, wherever it’s being stored and sent so that hackers can’t intercept and read it.

They enable user authorization

Certain roles in a business need access to sensitive information and applications, but not at the expense of jumping through hoops to get it or worrying that other users in the business will have access to information that they shouldn’t. Balancing these needs requires a user-friendly yet watertight authorization process.

An HR and payroll tech provider that recognizes the connection between user authorization, org chart roles, and security enables you to control user permissions and data access at the role level so that the right people get the right access to the information they need. 

They take password protection seriously

Similar to user authorization, password protection is a necessary security feature to unlock system access to authorized users while keeping out unauthorized users or intruders. It offers the first layer of protection against data breaches and other security issues. 

The right HR and payroll tech provider password-protects system and data access rights, and follows standard password policies and best practices.

They have the right certifications

Because cybersecurity and data integrity are so critical, there are specific certifications tech providers need to have to ensure data is protected and earn the trust of customers. In the HR and payroll universe, it’s especially important to protect confidential data and financial transfers while reducing the security risks surrounding these workflows.

Choosing an HR and payroll tech provider that’s SSAE 18 Type II certified ensures payroll data security by processing payroll and managing employee data and tax money with the highest level of protection. 

They conduct annual audits

Security processes, protocols, and certifications aren’t a one-and-done, but instead need constant review to make sure everything is in order and continues to meet standards. Auditing those processes on a regular basis is an important step that contributes to the integrity of the provider and helps them constantly strive to make updates and improvements. 

The right HR and payroll provider works with an independent auditor to evaluate business continuity procedures, system maintenance, backup, disaster recovery, and network services, and provide a comprehensive SSAE 18 Type II report as part of the audit to demonstrate compliance.

Get HR data security with PrimePay

Cybersecurity for small businesses is just as important as it is for large enterprises, which is why your HR and payroll tech provider needs to offer the HCM data security features, expertise, and compliance that align with today’s highest standards. 

With PrimePay, you can get all of this—and the peace of mind that comes from knowing your sensitive employee, financial, and other personnel- and payroll-related data is safe.

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