Data security and privacy concerns are never far from international news headlines. Many high- profile companies have suffered unwanted media attention due to failures with their information security and data privacy protocols.
The recent coverage of the MOVEit Transfer software vulnerability is another alarming story on how employee personal data can be compromised, with key brands such as BBC, British Airways and Boots affected.
Payslip data security
The Payslip platform has the most rigorous levels of security and auditing built into every layer of its technology which adhere to the highest industry standards.
The platform does not require a 3rd party transfer software as it leverages Payslip’s own purpose-built tools to take data in and push data out.
Payslip holds and securely stores all payroll data (including personal employee information) in a secure cloud environment- all communications around this data is managed inside the platform where secure and documented communications take place between the global employer and local country vendors. This way, hugely sensitive global payroll data is never transferred via e-mail or spreadsheet.
Our SaaS cloud-based technology has inbuilt data protection and security measures that ensure global payroll data is protected in line with the highest data protection regulation standards. The platform is ISO 27001, ISO27701, SOC 1 Type 1 and GDPR certified.
Payslip uses a wide range of technologies and practices to defend personal data from unauthorized access or malicious attacks and exploitation of data. The platform is designed to protect and preserve data integrity, ensuring that data is accurate and reliable.
A key priority
Cyber security and data security best practices are now being prioritized at the majority of responsible organizations who understand and recognize that there is no room for complacency when it comes to safeguarding things like personally identifiable information.
Most organizations have a legal obligation to comply with regulatory and international compliance laws around data security as well as global data protection privacy policies such as GDPR.
Every person who works in a global payroll department understands the importance of information security and data privacy when it comes to processing payroll across multiple countries. Payroll contains highly sensitive data and personal information that needs to be protected in line with the highest industry standards.
In this article, we will look at some best practices that global payroll departments at multinational companies around the world should be following to ensure that employee and payroll data remains secure throughout the payroll process.
Move to the cloud
A cloud computing environment and infrastructure is far more secure than an environment that relies on email communication and data processing via excel spreadsheets. In 2023, it should really no longer be acceptable that anybody is processing sensitive global payroll data and employee information in Excel sheets and then transferring this data via email. Neither is storing payroll data on local hard drives.
A cloud computing environment has far more stringent security measures built into it and many cloud platforms are designed to secure data and information against attack or misuse. From restricting user access to only authorized individuals to a much higher level of password security, moving your global payroll operations away from legacy technology with insufficient information security and into a secure cloud environment should be your first step.
Limit access
Global payroll data should only be accessed securely by relevant stakeholders and qualified global payroll professionals. Not every person who joins a new company should have access to personal data and confidential information relating to employee salaries and tax status.
It is good practice to do an internal audit to ensure that only those people who need to view, access an edit payroll information have the authorization to do so on a regular basis. To avoid the mismanagement of payroll data, managers should apply limitations on access and also ensure that only specific individuals with relevant experience have the ability to view and alter it.
Digital audit trails
If something goes wrong with personal and confidential information, the first step is usually to launch an investigation to find out what happened and when. These key facts are often difficult to gather in many organizations today because the digital tools are not available to record what happened to the data and who had access to it.
Moving to a digital platform designed specifically for global payroll management will ensure that a transparent and comprehensive digital audit trail is in place for any internal or external party to get a clear picture on who accessed the data, who changed it and for what reason.
Audit trails such as these can clear up any confusion, provide concrete evidence of activity and also help align to overall information security policies at the organization. Increasingly, digital audit trails are also proving to be very useful when it comes to proving international compliance and regulation around payroll processing.
Manage centrally
When global payroll processing is managed from one central location, ideally on a single digital platform, then key issues around visibility and control are immediately resolved.
Data that can be easily viewed, monitored and tracked is data that can be managed securely. If global payroll managers are not able to get a clear view of what is happening with their global payroll process then they will not be able to say with confidence that the data in their payroll system is fully secure.
Managing global payroll from a centralized location helps ensure information security and data privacy when it comes to personally identifiable information contained in global payroll data.
Global payroll managers who have been advocating the use of a centralized location for a long time now will likely find that the local information security officer is a useful ally when it comes to creating a business case for a centralized global payroll process. It is simply a more secure environment to manage payroll data while also being a more efficient environment to deliver payroll across multiple locations.
Identify risks
It is always a useful exercise to map out in a specific way the current processes that make up your global payroll delivery. This will help you identify any gaps in the process where global payroll data or employee information could be at risk.
It will be helpful if you involve colleagues from compliance, information security and company governance in this process as they will have experience and expertise when it comes to identifying potential gaps. Key questions to answer as part of this process include:
- Who has access to global payroll data, and do they need it?
- Where is this information stored and is the environment secure?
- How long do we hold this information on our systems?
- How do we categorize and identify this information?
- What method do we have for sharing this information?
- How do we track access, viewing and use of this data?
- How do we know we are adhering to local employment laws?
- Are we following GDPR guidelines in everything we do?
These questions will help you identify vulnerabilities & data management concerns and also apply some structure to any data protection frameworks you wish to put in place to safeguard this important global payroll data.
Employee data request process
Global employees are becoming much more aware when it comes to their personal data and how it is used at the organizations they work for. The more data security and privacy reaches the news headlines, the more informed people become and the more questions they ask.
Employees have a right to data protection, and they have a voice when it comes to learning about the standards their employers commit to with regards to information security and data privacy.
It is therefore important to have an official process in place to handle any employee requests for their data. Employee rights when it comes to data requests have developed in recent years and global employers need to respond to these developments with an official process that gives clarity to any employee who wants to know how their data is collected, stored and used.
Companies need to be prepared to respond to an employee data request at any moment in time so it is best practice to collaborate with relevant internal departments to put in place a process that can handle employee data requests quickly and efficiently.
Breach responses
Data breaches are an unfortunate reality of the times we live in -and while every measure should be taken to ensure that data is secure and protected, it is nonetheless inevitable that data breaches will occur from time to time.
In the event of a breach, a swift and decisive response is needed so organizations everywhere will need to have a very clear procedure on what to do in the event of a data breach. Communication, transparency and specifics around new protection mechanisms will need to form part of the response to reassure anybody affected by the data breach.
Training and education of global payroll professionals is a crucial part of any response - this can also be a pre-emptive move to ensure a data breach does not happen in the first place. It is generally accepted that many data breaches occur due to internal errors or actions from employees that had unintended consequences. Often, it is not due to an external attack but a failure to follow information security principles and internal guidelines.
A best practice would be to establish and implement an official data breach policy and ensure proper training is given to any employees tasked with taking action in the event of a data breach.
Risks to data must be mitigated wherever possible to ensure the highest levels of information security and data protection are in place at any organization responsible for paying employees across several countries. No system is foolproof, but you can go a long way to minimizing risk by adhering to best practices, communicating regularly about the importance of data protection and ensuring mandatory staff training for all data protection policies and procedure notes.
Investing in secure digital platforms and utilizing next generation technology can also help safeguard crucial global payroll data. Zero complacency and an ongoing commitment to safeguarding employee information and payroll data will go a long way to ensuring that you avoid some of the unhelpful headlines that many high- profile companies have suffered from in the recent past.