In an era where data privacy regulations are expanding rapidly, companies can no longer view privacy and security as the sole responsibility of IT and cybersecurity teams. Human Resources (HR) has emerged as a critical player in safeguarding sensitive employee data, especially as employment data increasingly falls under the scope of privacy laws – and not just for current employees. Former employees, applicants, and contractors are in scope, as well. From recruitment and payroll to performance tracking and people analytics, HR departments handle vast amounts of personally identifiable information (PII), making them both a target for cyber threats and a key enforcer of compliance. 

With regulations such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and emerging laws in states like Delaware, HR teams must take an active role in data protection strategies. This blog explores why HR is central to data privacy efforts and outlines best practices for managing employee data securely. 

Why HR is at the Forefront of Data Privacy 

1. HR Manages Highly Sensitive Employee Data

HR departments collect and store a wide range of sensitive data, including: 

• Personally Identifiable Information (PII): Names, addresses, Social Security numbers, and birthdates. 
• Financial Information: Bank account details, tax forms, and salary records. 
• Health Data: Employee medical records, benefits information, and disability accommodations. 
• Performance and Behavioral Data: Performance evaluations, disciplinary records, and engagement surveys. 

Because this data is valuable to cybercriminals, HR teams must implement strong security measures and follow compliance guidelines to prevent breaches. 

2. Expanding Privacy Regulations Now Include Employment Data

Traditionally, data privacy laws focused on consumer data, but recent regulations now explicitly cover employee data: 

• The CCPA (California Consumer Privacy Act): Requires employers to provide transparency about how they collect and use employee data. 
• The CPRA (California Privacy Rights Act): Expands employee rights, allowing them to request access to, correct, or delete their personal data. 
• GDPR (General Data Protection Regulation): Applies strict data protection rules to HR data in EU-based companies or those handling EU employee data. 
• State-Level Laws: Other states, including Virginia, Colorado, and Delaware, have introduced privacy laws that impact HR data handling. 

With these regulations evolving, HR must work closely with legal and IT teams to ensure compliance and minimize risk. 

3. HR Plays a Key Role in Data Protection Culture and Training

HR is uniquely positioned to foster a company-wide culture of data privacy and security. Their role includes: 

• Employee Training: Educating staff on privacy policies, phishing scams, and secure data handling. 
• Access Management: Ensuring only authorized personnel have access to sensitive employee data. 
• Policy Enforcement: Communicating and enforcing company policies related to data security. 

By making data privacy an integral part of employee training and onboarding, HR helps create a more security-conscious workforce. 

Best Practices for HR in Data Privacy 

1. Implement Strong Data Governance Policies

HR should establish clear policies and procedures for handling employee data, including: 

• Data Minimization: Only collect the necessary data required for employment purposes. 
• Retention Policies: Define how long data should be kept and when it should be deleted. 
• Access Controls: Limit access to sensitive HR data based on job roles. 

2. Collaborate with IT and Legal Teams

To ensure compliance and security, HR must work closely with IT and legal departments: 

• With IT: Implement secure HR software solutions, conduct regular audits, and monitor for breaches. 
• With Legal: Stay up to date on privacy regulations and ensure policies align with legal requirements. 

3. Ensure Secure People Analytics Practices

As companies increasingly rely on people analytics to drive HR decisions, data security must be a priority: 

• Use Anonymized Data: Whenever possible, anonymize employee data to protect individual identities. 
• Limit Data Sharing: Ensure analytics tools and third-party vendors comply with privacy laws. 
• Obtain Employee Consent: Be transparent about data usage and obtain consent when required. 

4. Prepare for Data Subject Requests (DSRs)

Many privacy laws allow employees to request access to or deletion of their data. HR should: 

• Develop a Process: Create a structured approach for handling DSRs efficiently. 
• Train HR Staff: Ensure HR teams understand how to respond to privacy-related requests. 
• Coordinate with IT: Work together to retrieve and delete data securely. 

In today’s regulatory landscape, data privacy is no longer just an IT or cybersecurity concern—it is a fundamental responsibility of HR. With access to vast amounts of sensitive employee information, HR teams must actively participate in data governance, security training, and compliance efforts. By implementing strong data privacy policies, collaborating with IT and legal teams, and ensuring ethical use of employee data, HR can help protect both employees and the organization from privacy risks. 

As employment data continues to fall under new privacy regulations, companies that empower HR to take a proactive role in data protection will be better positioned to stay compliant and safeguard their workforce’s trust. Enabling your HR with the Truyo Platform will help manage employee data requests in alignment with the regulations under which the organization falls, reducing or eliminating manual interventions. For any questions on how we are helping companies manage employee data requirements, reach out to hello@truyo.com or request more information here.