Leading HRIS Vendors for System Security

HRIS security is vital to protect sensitive employee data from breaches. Essential features include unified database architecture, regular audits, access controls, and certifications like SOC 2 Type II and ISO 27001. Read about the Security protocols for vendors like Workday, Dayforce, and Paylocity on the HRIS Marketplace.

Brett Ungashick
OutSail HRIS Advisor
May 28, 2024
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In today's digital age, Human Resource Information Systems (HRIS) security is a major concern for businesses. These platforms handle sensitive personal and financial information and need strong security measures to prevent data breaches. A breach could seriously affect employee privacy and financial integrity, affecting the workforce and the organization.

Employers depend on HRIS systems for administrative tasks and strategic human capital management. These systems store sensitive personal and banking data, so it's crucial to prioritize data protection by choosing HRIS vendors with top-notch security protocols. A successful cyberattack or data breach could seriously compromise employee records and trust and cause financial harm to employees.

Understanding HRIS System Security

HRIS system security is integral to ensuring the confidentiality, integrity, and availability of sensitive employee data. As data breaches become more sophisticated, the criticality of robust security measures and data protection in HRIS cannot be overstated.

Criticality of Security

In Human Resource Information Systems (HRIS), security is not just a feature but a necessity. The centralization of employee data magnifies the potential risks and consequences of data breaches, making system security a top priority for vendors and organizations alike.

Ensuring the security of an HRIS system is paramount, as it is tasked with protecting against unauthorized access, cyber threats, and inadvertent data leaks which can jeopardize the organization's operations and reputation.

Data Sensitivity

Sensitive information within HRIS platforms often includes personal identifiers such as Social Security Numbers (SSNs) and financial data like bank details necessary for payroll processing.

Other sensitive data elements managed by HRIS include:

  • Personal contact information
  • Employment history
  • Tax withholdings
  • Benefits enrollment data
  • Performance evaluations

Given the sensitive nature of this data, HRIS systems must incorporate rigorous data protection measures to maintain the privacy and security of employee information.

Components of a Secure HRIS

When evaluating the security of an HRIS platform, it's important to consider not only the product's technical architecture but also the business practices that support security measures and the third-party verifications that endorse a vendor's commitment to protecting sensitive data.

Product Architecture

A unified database architecture within an HRIS is crucial for security and efficiency. It ensures that all employee data is stored in a centralized location, reducing the complexity and potential vulnerabilities of handling data across disparate systems. Unified databases streamline security protocols, making implementing consistent encryption and monitoring access easier.

Internal Best Practices

To safeguard HRIS data, organizations must adopt internal best practices such as:

  • Regular Audits: Conduct frequent evaluations of the systems to identify and rectify potential security issues.
  • Data Privacy Training: Implement comprehensive training programs for all employees to understand the importance of data privacy.
  • Access Controls: Establish strict controls to ensure that only authorized personnel can access sensitive information, using role-based permissions.

External Verifications

External security certifications are critical for an HRIS. They provide an independent assessment of a vendor's security practices. Notable certifications include:

  • SOC 2 Type II: Signifies a high level of compliance with the security, availability, processing integrity, confidentiality, and privacy of a system.
  • ISO 27001: A globally recognized standard that outlines best practices for an information security management system (ISMS), demonstrating a vendor's commitment to information security.

Leading Vendors in HRIS System Security

The security of HRIS systems is critical for protecting employee data and maintaining trust. Here, we present a curated selection of leading vendors recognized for their robust security measures and adherence to industry standards.

Workday

Workday prides itself on a secure architecture designed to protect client data. Workday has achieved ISO 27001 certification, affirming its commitment to comprehensive security controls. The accolades also extend to its adherence to regional security frameworks and an extensive audit program asserting data integrity and availability.

Dayforce (Ceridian)

Dayforce, developed by Ceridian, leverages a single-database architecture that streamlines operations and enhances security. With rigorous encryption and real-time monitoring, Dayforce ensures great resilience against threats. Compliance is key, as evidenced by their SOC 1 and 2 certifications, which set a high standard for data protection.

Paylocity

Paylocity continues to fortify its position as a secure HRIS vendor. The platform ensures security and compliance through relentless system monitoring and regular updates that align with evolving standards. Paylocity has illustrated an ongoing commitment to securing sensitive client data and systematically improving its system's defences against cyber threats.

Rippling

With a modern approach to security, Rippling stands out for its ability to safeguard sensitive data through an intuitive platform. Recent security upgrades have sharpened its defences, and continued certifications like SOC 2 Type II signify Rippling's diligence in meeting high-security benchmarks.

Gusto

Gusto specifically addresses payroll and data protection with robust security features. Encryption and controlled access are part of its design philosophy. Gusto demonstrates an unwavering dedication to protecting employee information by complying with recognized security standards and holding certifications.

Learn More: Read about the security protocols for every HRIS vendor on the HRIS Marketplace

Conclusion

Selecting a secure HRIS vendor is pivotal for protecting sensitive employee data and overall business security. Organizations must scrutinize the market to find HRIS providers that consistently incorporate strong data protection measures and comply with rigorous industry standards.

Businesses should assess the data protection capabilities of HRIS systems, such as encryption methods, user authentication protocols, and regular security audits. This due diligence ensures that the chosen HRIS system effectively safeguards against potential data breaches and cyber threats.

Remember, it's important to prioritize security when selecting HRIS vendors. Look for vendors with strong security measures and transparent practices. Consider consulting with security experts or using services like OutSail to find the most secure HRIS solutions. Partnering with vendors prioritizing security demonstrates a commitment to protecting your employees' privacy.

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Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.

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