5 Cybersecurity Best Practices for HR & Payroll Records 

Human Resources (HR) and payroll teams manage some of the most sensitive information within a business, including employee Social Security numbers, compensation information, tax documents, banking details, and benefits records. With so much confidential data at their fingertips, protecting these systems should be an ongoing priority. 

From using multi-factor authentication to limiting access to sensitive records, these five cybersecurity best practices can help HR and payroll teams reduce security risks and better protect employee data. 

Key Takeaways 

• Strengthen login security with multi-factor authentication and strong passwords. 
• Limit access to employee information based on job responsibilities. 
• Train employees to recognize phishing emails and suspicious requests. 
• Keep HR and payroll systems updated with the latest security patches. 
• Use secure systems to store and share sensitive employee records. 

1. Enable Multi-Factor Authentication 

Passwords alone aren’t enough to protect sensitive HR and payroll systems. Multi-factor authentication (MFA) adds another layer of security by requiring users to verify their identity through an additional method, such as an authentication app, verification code, or biometric authentication. 

Enabling MFA for payroll, benefits, HR, and other systems containing sensitive employee information can help prevent unauthorized access, even if a password is compromised. Businesses should prioritize MFA for employees with access to sensitive information and administrative accounts. 

2. Limit Access to Sensitive Information 

Not every employee needs access to personnel files, payroll data, or benefits records. Giving employees access only to the information required for their role can help minimize security risks. 

Role-based access controls allow organizations to determine which employees can view, edit, or manage specific types of information. 

Access should also be reviewed when employees change positions or leave the organization. Removing unnecessary permissions can help prevent former employees or employees in new roles from retaining access to information they no longer need. 

3. Train Employees to Spot Phishing Attempts 

Cybercriminals often target HR and payroll departments because employees in these roles regularly handle personal and financial information. 

A phishing email may appear to come from an executive, employee, vendor, or another trusted contact. It could ask an employee to send sensitive information, change direct deposit details, open an attachment, or click a link. 

Regular cybersecurity training can help employees recognize common warning signs, such as: 

• Unexpected requests for sensitive information 
• Urgent requests involving payroll or financial information 
• Suspicious links or attachments 
• Unfamiliar sender addresses 
• Requests that don’t follow normal company procedures 

Employees should also know how to report suspicious messages and verify unusual requests through a trusted communication method. 

4. Keep Software and Systems Up to Date 

Outdated software can leave systems vulnerable to known security issues. Regular updates and security patches can help address vulnerabilities and keep HR and payroll technology more secure. 

Organizations should work with their IT teams and technology providers to make sure operating systems, applications, and HR and payroll platforms are updated regularly. Keeping software current is a simple but important part of maintaining a strong cybersecurity strategy. 

5. Securely Store and Share Employee Records 

Employee information should be stored in secure, approved systems with appropriate access controls and encryption. 

HR and payroll teams should also be careful when sharing sensitive information. Sending confidential employee records through unsecured email or storing them on personal devices can create unnecessary security risks. 

Before sharing employee information, consider: 

What information am I sharing? 
Only provide the information that is necessary. 

Who needs access to it? 
Confirm that the recipient is authorized to receive the information. 

How am I sharing it? 
Use company-approved, secure systems and file-sharing methods whenever possible. 

How GMS Helps Protect Employee Information 

Managing employee information across multiple systems can complicate security and data management. A centralized HR technology platform can help organizations keep employee information organized while supporting appropriate access and security controls. 

GMS Connect provides businesses with a centralized HR platform for managing employee information, payroll, benefits, and other HR processes. By bringing important HR functions together in one system, businesses can reduce the need to manage employee information across disconnected platforms. 

GMS also helps businesses manage their HR technology as part of a broader HR and payroll solution, giving organizations access to support when they need it.