Employee Data Management

What’s Trending: Employee Data Management

What’s Trending: Employee Data Management

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Data has changed the game in many, many industries, and HR is probably among the most changed. Gone are the days when HR was just collecting anonymous paper questionnaires or having employees fill out different forms. After all, the future is now, but with it come different risks.

Read this mini all about how to manage and protect people analytics.

DeskBird

An article by DeskBird argues that data is more important than ever with the rise of hybrid work. Having effective employee data can also help HR and managers gain insight into their workforce for growth. Still, there are unique challenges when it comes to managing the data, from tech limitations and considerations to the problem that always comes up with a hybrid workforce—that is, having the best and the worst of both worlds.

“Real-time access to the most up-to-date information means that managers can make informed decisions quickly.”

The main reason for having people analytics is that it allows for a good perspective of what is happening in every moment and how it can be improved. Efficient data management can enhance collaboration and centralization and provide insights for training, reviews, and updates, especially if it is done with proper tools, like software.  

But companies must beware, as data management software can’t be trusted so easily. Between the legislation of AI in the workplace and the security risks, privacy laws, data fragmentation, and other risks, HR managers must pay attention to key features like:

  • Automation
  • Reporting
  • Security
  • Integration

Fortune

Brit Morse urges leaders to prioritize security as HR data on cloud systems can be vulnerable. She writes about how HR has been transformed into a data-first department, which means that they must rely on tech through cloud technology.

Having files, documents, and more on the cloud is actually really useful for businesses, as it can help them maintain processes and make them quicker, more efficient, and save costs. Think about it, if you work for a big company that has offices all across the country, having a cloud system where every document is stored helps people access it wherever and whenever necessary.

Protecting personal information in the workplace should be one of the top concerns of companies, along with protecting clients’ information. According to CrowdStrike, cloud intrusions jumped up 25% from 2023 to 2024, and with AI, this is expected to increase.

“While many organizations spend a tremendous amount of time thinking about how to protect their customer data, as there are many regulations around it, they don’t spend enough time thinking about how to protect employee data.”

Part of the problem also seems to be that many HR teams use third-party vendors to manage and share their data, and they usually don’t give much thought to who these third parties are. Kim Seals, senior partner at West Monroe, says that instead of sending all their employees’ data to all vendors, they should give them tailored information. Like, a vendor that manages paid time off doesn’t need to know the location and age of any employee. Issues may arise when contracts aren’t renewed, as vendors may keep and mismanage people analytics.

SHRM

Roy Mauer emphasizes the role of protecting personal information in the workplace and how HR must understand the difference between transparency and privacy while complying with the law. With the dawn of new tech, he agrees with the other authors that HR work is now easier than ever and more dangerous for employees if their information is mishandled.

You might wonder, what is HR data management, and how can it be improved? This term refers to HR’s responsibilities, which include safeguarding employee data and managing it ethically, securely, and in compliance with data protection laws.

“Employees should be aware of the purposes for which their data is collected and processed, as well as their rights to access, correct, or delete their information.”

Understanding why and what is being compiled on employee data collection is essential for consent. Employers should have a clear purpose for why they’re collecting data to prevent any trouble. The organization should mainly focus on performance and productivity.

There are certain laws that always need to be complied with under all circumstances, and failing to do so can create big legal issues for the company and even put employees in a vulnerable spot. These are as follows:

  • The Americans with Disabilities Act (ADA)—Limits the collection of medical information.
  • The Fair Credit Reporting Act—Regulates background checks.
  • The Genetic Information Nondiscrimination Act (GINA)—Prohibits employers from making decisions based on genetic information.
  • The Health Insurance Portability and Accountability Act (HIPAA)—Protects employees’ health information.

The takeaway

HR is one of the most important departments in companies, and managers must understand the weight of that responsibility. Handling clients’ information is essential to any good company, but leaving gaps for exploiting employees’ data can bring many repercussions that companies aren’t seeing. Ensuring complete safety internally and externally fosters 360° loyalty for all parties involved, so auditing their third-party providers, collecting only relevant data, and presenting findings and insights openly is the best course of action for any business that’s serious about privacy and transparency.

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