10 Steps for GDPR Compliance in HR Technology
Key Takeaways
- Map and classify all HR data.
- Document lawful bases for processing.
- Encrypt and secure sensitive information.
- Enable employee data rights.
- Regularly audit and update compliance measures.
HR technology companies play a crucial role in the digital transformation of human resources, offering tools for recruitment, payroll, benefits, and employee management.
These platforms handle large volumes of personal data, often including sensitive information such as health records, salary details, background checks, and diversity metrics.
With the enforcement of the General Data Protection Regulation (GDPR), HR tech providers must ensure their systems and processes are fully compliant. GDPR compliance is not only a legal requirement - it’s essential to maintaining trust with clients, protecting employee and candidate rights, and avoiding substantial fines.
Non-compliance can result in regulatory investigations, costly fines (up to €20 million or 4% of annual global turnover), and significant reputational damage. For companies dealing with employee and candidate data, the stakes are even higher. Clients expect their HR systems to be secure, transparent, and fully compliant from day one.
In this article, we'll explore how HR technology companies can meet GDPR compliance requirements with practical, industry-specific steps to secure and process personal data responsibly.
Whether you’re building an applicant tracking system (ATS), HRIS, payroll software, or an all-in-one HR suite, these steps will help you embed GDPR compliance into the core of your product and business operations. Grab the full checklist at the end of the article!
Table of Contents:
1. Conduct a Data Audit
2. Establish a Lawful Basis for Processing Data
3. Implement Strong Data Security Measures
4. Enable Data Subject Rights for Employees & Candidates
5. Define Data Retention and Deletion Policies
6. Ensure Third-Party & Vendor Compliance
7. Conduct Data Protection Impact Assessments (DPIAs)
8. Implement Privacy by Design
9. Appoint a Data Protection Officer (DPO)
10. Provide GDPR Training & Awareness
Conclusion
Frequently Asked Questions (FAQ)
Important: The content of this article is for informational purposes only and does not constitute legal advice. The information provided here is no substitute for personalized legal advice from a data protection officer or an attorney. We do not guarantee that the information provided is up to date, complete, or accurate. Any actions taken on the basis of the information contained in this article are at your own risk. We recommend that you always consult a data protection officer or an attorney with any legal questions or problems.