In 2024, over 40% of all breached records were tied to employee personally identifiable information (PII), with each record costing companies an average of $189 to resolve. When it comes to the human resources (HR) sector, protecting sensitive data is not just about compliance—it’s about safeguarding employees and the company’s reputation. HR handles payroll information, personal records, and employment contracts daily, all of which are vital to the smooth operation of any business.
While we focus on HR cybersecurity, we also need to acknowledge modern tools like tracking apps that can help improve productivity and operational efficiency. Apps that track employee location, productivity, or digital performance can offer value when both parties—employer and employee—agree to their use. A resource like the best tracking app can be an effective way to monitor digital performance, as long as privacy and consent are prioritized. However, while tracking apps can provide useful insights, HR needs to focus on stronger, broader cybersecurity measures to protect the personal, financial, and contractual information it handles.
The Growing Cybersecurity Threats to HR
The rise in cyberattacks targeting HR systems is more than just a trend—it’s a growing crisis. According to industry reports, 41% of all breaches in 2023 involved employee data, highlighting that HR departments are prime targets for cybercriminals. The stakes are high, with data breaches resulting in not only financial losses but also reputational damage that can take years to repair.
For HR departments, it’s no longer a question of “if” a breach will happen, but “when” it will happen. With each attack that occurs, organizations face not only the challenge of recovery but also the potential for long-lasting consequences. But there are ways to fortify HR departments against these rising threats.
Protecting Payroll Data: More Than Just Numbers
Payroll systems are a common target for cybercriminals because they contain sensitive financial information. A payroll breach could mean direct financial loss, identity theft, or even unauthorized access to bank accounts.
Best Practices for Payroll Protection:
- Encryption: Payroll data should always be encrypted, both when it’s stored and during transmission. This ensures that even if a cybercriminal gains access to the data, they won’t be able to read it.
- Role-Based Access: Limit who can access payroll systems by implementing role-based access controls. Only authorized personnel should be able to view or alter sensitive payroll data.
By focusing on these practices, you can ensure that payroll information remains protected from prying eyes.
Securing Personal Records: The Foundation of Employee Trust
Personal employee records contain sensitive information like Social Security numbers, home addresses, and emergency contacts. If compromised, this data could lead to identity theft, financial fraud, or privacy violations. Maintaining the security of these records should be one of HR’s top priorities.
Best Practices for Personal Record Security:
- Data Segmentation: Personal records should be segmented and stored separately, with different access controls in place for each type of data. For instance, medical records should have stricter access than basic contact information.
- Secure Deletion: When personal records are no longer required, they should be securely destroyed. This could include using shredding services for physical documents or employing specialized software for wiping digital data from devices.
A robust system for handling personal records can significantly reduce the risk of data loss or theft.
Protecting Employment Contracts: Maintaining Integrity
Employment contracts not only define the terms of the employer-employee relationship but also ensure compliance with labor laws. If these contracts are altered or stolen, it can lead to legal complications, financial disputes, and loss of credibility.
Best Practices for Contract Protection:
- Digital Signatures: Secure digital signature tools are a great way to protect employment contracts from fraud. These signatures provide a verifiable, tamper-proof record of contract creation and approval.
- Document Management Systems: Implement a document management system that tracks contract versions and logs who accessed or altered the document. This adds an extra layer of accountability and security.
Insider Threats: The Hidden Risk Within
The threat from insiders is particularly difficult to detect and manage. Employees, contractors, or vendors who have access to HR systems may intentionally or unintentionally compromise sensitive information. In fact, studies show that insider threats are responsible for up to 60% of all data breaches.
Best Practices for Mitigating Insider Threats:
- Behavioral Analytics: Use tools that monitor user behavior for unusual activity that might indicate a security threat. For example, an employee accessing payroll data at unusual hours or downloading large quantities of personal records could be a red flag.
- Clear Policies: Have clear, well-communicated policies in place about acceptable data use, and make sure all employees understand the consequences of violating these policies.
An insider breach can be just as damaging as an external one, and often harder to trace. By being proactive, HR departments can minimize this risk.
The Human Element: Training Employees on Cybersecurity
Cybersecurity isn’t just a technical issue; it’s a human one. Over 90% of all cyberattacks are due to human error, often in the form of falling for phishing emails or using weak passwords. HR must play an active role in educating employees about potential threats and how to protect themselves.
Best Practices for Employee Training:
- Continuous Education: Don’t just train employees during onboarding. Ongoing training programs will help employees stay up to date on the latest security threats and how to recognize them.
- Phishing Simulations: Regularly run simulated phishing campaigns to train employees to spot phishing attempts before they click on a malicious link or attachment.
A well-informed workforce is the first line of defense against cyberattacks.
Compliance and Legal Considerations
Regulatory compliance is an ongoing challenge for HR departments. Data protection laws are evolving rapidly, and HR departments need to stay informed to avoid legal repercussions. Non-compliance can lead to hefty fines, lawsuits, and long-term damage to the company’s reputation.
Best Practices for Ensuring Compliance:
- Stay Informed: HR should regularly review data protection laws and regulations that affect how employee data is stored and processed. Laws such as GDPR in Europe and CCPA in California have set high standards for employee privacy.
- Regular Audits: Conduct regular audits to ensure that your organization is fully compliant with these regulations and that security measures are in place to protect employee data.
Compliance is not just a box to check—it’s an ongoing responsibility that requires constant vigilance.
Conclusion: Strengthening HR Cybersecurity
Protecting sensitive HR data—payroll, personal records, and contracts—is not just about preventing data breaches; it’s about safeguarding the trust of employees and maintaining the integrity of your organization. By implementing strong security practices, training employees on cybersecurity best practices, and staying compliant with regulations, HR departments can minimize the risk of cyberattacks.
As cybercriminals continue to evolve their tactics, so must HR’s approach to cybersecurity. The cost of inaction is far too high, both financially and reputationally. Take proactive steps today to protect your HR systems and secure the sensitive data that employees entrust to you.
