Data Security With Cloud-Based HR Software for The Organization

4 min readJan 12, 2021


Human resource management will always be an integral part of the organization. They are responsible for talent acquisition, payroll management, and many other vital administrative tasks. Many organizations use the Human Resource Information System ( HRIS ) to enhance their HR department.

HRIS is a system that gathers, maintains, and validates data of the workforce. Organizations are adopting cloud-based HR software to leverage their process. It can manage and store large amounts of data with ease. It is debatable whether sensitive information like human resources should be on the cloud or no.

Following are a few pointers which your organization should consider for securing the data with cloud-based HR software:

Type of Cloud Deployment:

Cloud deployment is available in three versions for organizations to use: public, private, and Hybrid.

Many SMEs are choosing a public cloud domain. Multiple businesses share a public cloud to make it is less expensive. The public cloud is comparatively less secure because the third-party handles the cloud service.

A private cloud is a storage space only for that particular business or client. The client handles the private cloud. It becomes a little more expensive because it is exclusively limited to that client. A third party cannot access that cloud.

Public and private clouds combine to form a hybrid cloud. Organizations can opt for a public cloud for less sensitive data. They can opt for a private cloud for highly sensitive data.

While considering Cloud-Based HR Software, organizations should opt for a private or hybrid cloud.

Analyze Vendors Security Measures:

Organizations should analyze vendor’s data security measures before buying an Best HRMS Software. Vendors need to comply with the client’s privacy and data security.
The quality of safety measures will differ from vendor to vendor. It is always beneficial to select a vendor who has the best security measures in place.

Curb Access on a Need Basis:

While the implementation of cloud-based HR software, organizations should keep the information limited and controlled. A particular employee should only have access to his data. If any employee makes changes in the employee management system, it should require authorization.

A resource should only have access to the data which is relevant to his job description. The HR department should immediately revoke access to the employee who is leaving. Only payroll and respective employee should have access to the online attendance system.

Remain Alert:

When organizations choose a Cloud-based HR software, They should make sure they evaluate their vendors based on data security. IT department should decide whether it is safe to use vendor services or have a solution on-premises.

IT department should take a tour and do a detailed analysis of the vendor data center. It is very crucial to check who has the administrator password and can access the log at the vendor’s end. Details analysis is necessary to check if the vendor meets all the data protection needs.

Organizations need to choose which HR data needs to be on the cloud. Organizations should explore the options to handle the most sensitive HR data like employee data, payroll, and others. Organizations need to come up with a strategy to secure their data.

Train Your Workforce on Data Protection:

Data security can be at threat by cyber attacks. Employees can also be responsible for data leaks. If the employee knowingly or unknowingly gives out a sensitive password, that can lead to a data breach.

According to Verizon, 63% of data breaches are due to weak, default, or stolen passwords. Another reason for data breach would be if the sharing of information with the wrong person, wrong disposition of data, misconfiguration of IT systems, and lost company devices.

Employees play a vital role in data protection. The HR department should train new hires on this topic during onboarding and should conduct refresher sessions. Robotic Process Automation in HR management take care of onboarding and offboarding tasks, updating employee information, and other HR tasks.

Implement Stringent Data Security Policy:

The HR department should implement stringent data security policies. It should be mandatory to change the system password regularly. The HR department should never access sensitive data from a public network. Vendors should comply with the general data protection policy (GDPR).

Additional data security policies should be in place if your HR department has remote access. The timeout feature will be extremely beneficial here.

Stress on Accountability:

Data security is a continuous process. The HR department employee should know what to do when they notice a security concern. There should be an internal reporting system for data breaches. There should be regular interventions and discussions about data security.

Taking Everything into Account:

Data security with cloud-based HR software is an intricate and continuous process. The HR department cannot ignore Data security because it involves everyone in the company.

Organizations should test cloud-based HR software on a data security basis. The cloud-based HR software vendors should have top-notch cybersecurity in place to protect the organization’s sensitive data.