Digitisation and GDPR: How to Properly Manage Employee Data?
The digitisation of HR processes has become a critical step for organisations across Europe. By adopting digital tools, companies can improve efficiency, reduce administrative burden, and enhance employee engagement. However, this transition comes with significant legal responsibilities, particularly under the General Data Protection Regulation (GDPR).
GDPR, in effect since 2018, places strict obligations on companies to ensure the security and confidentiality of personal data collected and processed throughout the employment lifecycle. How can organisations navigate these challenges? What role does the Data Protection Officer (DPO) play in ensuring compliance? This article explores these crucial issues.
What Is Employee Personal Data?
Employee personal data refers to any information that can identify an individual, directly or indirectly. It encompasses a wide range of details collected during recruitment, employment, and even after offboarding. Examples include:
- Basic information, such as name, address, and contact details
- Social security numbers, tax identification numbers, and payroll data
- Employment history, performance evaluations, and training records
- Sensitive information, such as medical history, union membership, and financial data
Given the breadth of this information, protecting employee data is both a legal and ethical responsibility. Employers must restrict access to authorised personnel and implement measures to safeguard employee privacy.
For example, HR teams managing payroll or medical records must use secure systems that limit data access to only those who need it for their role. Ensuring compliance with GDPR is essential to avoid legal penalties and uphold employee trust.
The Legal Challenges of HR Digitisation
The GDPR sets out clear rules for the collection, storage, and processing of personal data. Companies that fail to comply with these rules risk substantial fines—up to €20 million or 4% of their global annual turnover for severe violations.
Key risks associated with HR digitisation include:
- Data breaches: A cyberattack or mishandling of sensitive data can result in loss of control over employee information.
- Confidentiality breaches: Unauthorised access to data can harm employee trust and violate privacy laws.
- Non-compliance with breach notifications: Under GDPR, organisations must report data breaches to the relevant authorities within 72 hours.
To address these risks, companies must establish robust data management practices. This includes:
- Maintaining a processing activity register: A detailed record of how personal data is collected, used, and stored.
- Implementing advanced security measures: Encryption, firewalls, and multi-factor authentication help protect sensitive information.
- Developing breach notification procedures: Companies must have clear plans in place to report and mitigate data breaches.
Additionally, organisations must ensure that employees provide explicit consent for processing their personal data. For instance, when implementing HR software for onboarding or performance management, companies should clearly communicate how the data will be used and stored.
The Role of the Data Protection Officer (DPO)
Under GDPR, certain organisations are required to appoint a Data Protection Officer (DPO). The DPO’s role is critical in ensuring compliance, protecting employee data, and mitigating risks. Key responsibilities of the DPO include:
- Monitoring the organisation’s adherence to GDPR requirements
- Educating employees on best practices for data protection
- Managing data breach notifications and liaising with regulatory authorities
- Advising on data retention policies, including the right to be forgotten
A DPO acts as the bridge between the organisation and regulatory bodies. For companies using cloud-based HR tools, the DPO ensures that these platforms meet GDPR requirements, such as data purging schedules and secure storage protocols.
Collaborating with the DPO can also help businesses adopt proactive measures to minimise risks, such as conducting regular audits and updating data protection policies.
Best Practices for GDPR-Compliant HR Digitisation
Digitising HR processes offers tremendous benefits, but compliance with GDPR must remain a top priority. Here are some best practices for organisations to follow:
- Choose GDPR-compliant technology: When selecting HR software, ensure the provider adheres to GDPR standards and offers robust security features.
- Train employees: Regular training on data protection and GDPR requirements ensures everyone understands their responsibilities.
- Establish retention policies: Set clear guidelines for how long employee data is stored and ensure old data is securely deleted.
- Ensure employee rights are respected: GDPR grants employees the right to access, correct, and request the deletion of their data. Organisations must provide clear processes to facilitate these requests.
By implementing these measures, companies can streamline HR operations while maintaining compliance and safeguarding employee trust.
Pixid: Supporting GDPR Compliance with Confidence
At Pixid, we understand the challenges of balancing HR digitisation with GDPR compliance. Our SaaS platform is designed to help organisations manage employee data securely and efficiently.
With ISO 27001 certification and the expertise of our DPO, Franck Schleich, we provide robust solutions for data protection. Whether it’s maintaining data security, managing retention schedules, or ensuring compliance with the right to be forgotten, Pixid offers peace of mind for organisations navigating the complexities of GDPR.
Digitising HR processes is an essential step for modern businesses. By adopting secure solutions and prioritising compliance, organisations can embrace digital transformation while protecting their employees’ personal data.
