Have you ever wondered how companies make sure the personal data of applicants and employees stays protected? From job applications to payroll to internal HR processes: data protection isn't just a legal obligation — it's also a sign of respect and responsibility toward your own team. At heyData, we take this topic very seriously, and today we want to show you how our People and Culture team handles data protection and stays GDPR-compliant.
Why Does It Matter?
People and Culture teams are known for working with a lot of sensitive data — from personnel administration to payroll to applicant management. As you can imagine, this involves collecting a lot of personal and sensitive data that's essential to the work of the People and Culture team. To keep the data of our employees and applicants well protected, using the right tools — such as our HR information system (HRIS) Personio or a GDPR-compliant password manager — is a key building block of our data protection concept. It matters to us that Personio and 1Password, as German companies, are required to comply with strict German data protection laws and the GDPR, which gives us extra peace of mind.
See also: Secure Remote Work: Essential Data Security Tips for Employers and Employees
How We Ensure Data Security
Using an HRIS in a GDPR-Compliant Way
On the People and Culture team at heyData, we mainly work with Personio, a German all-in-one HR software. With Personio, we manage all HR processes centrally and efficiently. Some of the key features we use include:
- Centralized Data Management: By managing all employee data centrally in Personio, we keep a clear overview and minimize sources of error.
- Permission and Role Management: Only authorized people have access to sensitive data. Personio's sophisticated permission and role management ensures everyone only sees the data they actually need.
- Automated Processes: Automation doesn't just boost efficiency — it also ensures data protection policies are consistently followed.
Data Deletion and Retention
Another important aspect of data protection is data deletion. It's essential that personal data isn't kept longer than necessary, both to protect individuals' privacy and to comply with legal requirements. At heyData, we've implemented clear policies and processes to ensure this.
- Regular Reviews: We regularly review our databases to identify outdated data.
- Automated Deletion Periods: We've set up automated deletion periods in our tools that ensure data is deleted once the legal retention period expires. This is especially important for applicant data.
- Manual Reviews: When needed, we carry out manual reviews and deletions to ensure no sensitive data is stored without authorization.
Sensitive Data in Safe Hands: How We Maintain Confidentiality
Keeping employee data confidential is our top priority. We've implemented various measures to ensure this data stays protected — covering technical, organizational, and personnel measures to guarantee the highest security standards:
- Encryption: All sensitive data is stored encrypted, both in transit and at rest.
- Training: Our employees are regularly trained on data protection and data security topics through the heyData Academy to ensure they know the key principles and best practices.
- Access Controls: Strict access controls ensure that only authorized individuals have access to confidential information.
Teamwork and Data Protection: Staying Continuously Compliant
We quickly realized that data protection isn't a one-off project, but an ongoing process. We rely on proven tools and have clear processes and policies in place to ensure we act in a GDPR-compliant way at all times. Data protection is a team effort, and everyone at our company plays a part in protecting the data of our employees and of external individuals or companies as effectively as possible. Failing to meet these standards can have serious consequences:
- Steep Fines: GDPR violations can result in substantial fines that threaten a company's financial stability.
- Loss of Trust: Data breaches can permanently damage the trust of employees, customers, and partners, negatively impacting the company's image.
- Operational Consequences: Data protection incidents can significantly disrupt internal workflows and lead to inefficient processes and additional costs to manage the situation.
See also: The Consequences of Non-Compliance
Below, you'll find a checklist for your People and Culture team with our top tips for improving data protection at your company and staying GDPR-compliant.
Data Protection in HR: GDPR Guide for HR Teams | heyData
Learn how HR teams process applicant and employee data in a GDPR-compliant way — including ROPA, TOMs, DPIAs, DPAs, and the EU AI Act.
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FAQ
Why does data protection play such a crucial role in people & culture management?
Why does data protection play such a crucial role in people & culture management?
HR involves processing particularly sensitive data. This includes not only standard information such as contact details or social security numbers, but often also special categories of personal data under Art. 9 GDPR, such as health data (sick notes), religious affiliation (church tax), or severe disabilities. Data protection violations in HR are not only serious from a legal perspective — they also destroy the fundamental relationship of trust between employer, staff, and applicants.
What data protection requirements apply to candidate selection (recruiting)?
What data protection requirements apply to candidate selection (recruiting)?
Strict rules apply as early as the application process. Personnel data may only be processed for the decision on establishing an employment relationship (Section 26 BDSG). Once the application process is completed and a rejection has been issued, application documents must generally be deleted after no more than 6 months (the deadline for defending against claims under the AGG). Longer storage, for example for a talent pool, is only permitted with the applicant's explicit and voluntary consent, which can be withdrawn at any time.
How must personnel files be protected in day-to-day work?
How must personnel files be protected in day-to-day work?
Whether digital or in paper form: personnel files are subject to strict confidentiality and security standards (Art. 32 GDPR). Companies must ensure that only authorized HR staff or managers with a legitimate interest have access to specific file contents (need-to-know principle). For digital HR software solutions, granular role and permission concepts, two-factor authentication (2FA), and encrypted storage are mandatory to prevent unauthorized access.
How does practical collaboration between HR and data protection officers succeed?
How does practical collaboration between HR and data protection officers succeed?
Data protection should be established in the people operations team not as an obstacle, but as a mark of quality. Successful practice includes the following points:
- Early involvement: Consult the data protection officer (DPO) as early as the introduction of new HR software, time tracking tools, or feedback processes (privacy by design).
- Involve the works council & employee representatives: Technical systems for monitoring behavior or performance (e.g., AI video interviews, tracking software) require clear works agreements and transparency.
- Employee awareness: Regularly train the people & culture team on data protection issues to create awareness of data breaches and the confidential handling of colleagues' data.
