HR departments have a vital role in managing personnel information, which includes sensitive and confidential data. In addition to their role in protecting this data, HR departments must also find the data quickly, make sure that they are using the right versions of that data, and pay attention to retention laws that require them to keep the data for specific periods of time!
Information governance best practices are critical to achieving all of these needs. Here are six ways that information governance best practices can help HR departments function more compliantly and effectively:
Compliance: HR departments are responsible for handling sensitive employee information, such as health records, social security numbers, and tax forms and IG helps them to comply with laws like HIPAA, GDPR, and CCPA, minimizing the risk of data breaches and avoiding costly penalties and lawsuits.
Data Breach Risk Reduction: Employee data is highly sensitive, and a data breach can result in significant reputational damage, legal implications, and financial losses. IG and data security practices such as data encryption, secure data storage, access controls, and employee training can all significantly reduce the risk of data breaches.
Streamlining Data Management: A typical HR department manages a vast amount of employee data over a lengthy period of time. IG best practices that ensure that information is captured, processed, and stored in a standardized and efficient manner help them not only to find data quickly but to eliminate redundant, obsolete, and trivial data, and to ensure proper version control.
Improved collaboration: HR departments often work with other departments such as finance, legal, and IT. Effective IG helps HR to deliver the right records at the right time to other departments, increasing the likelihood that information is shared securely and efficiently.
Improving Data Quality: Poor data quality can lead to inaccurate decision-making, which can have significant consequences for the organization. Effective information governance practices can help HR departments improve data quality by ensuring that data is accurate, complete, and up to date.
Enhancing Employee Trust: Employees trust HR departments to handle their personal information securely and responsibly. Effective IG can help HR departments build and maintain employee trust by demonstrating the kind of compliance culture that values safeguarding employee data and complying with legal and ethical standards.
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