The Great
Transformation Guide
ADP has authored a series of thought-provoking articles exploring the relationship between organisations and payroll. From the HR
and payroll challenges of global expansion to the rich resources of payroll data; from the payroll skills shortage to the true cost of
inefficient processes; this series helps to identify and solve obstacles and appreciate and embrace the ever-greater asset payroll
can become to companies navigating a treacherous business landscape.
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Safeguarding payroll data - critical
Personal data that you collect to process employee pay is an example of information that must always be properly secured. Protecting this data at a country level and overseas is now more complex than ever.
With an increasingly professionalised cybercrime industry and a more dispersed global workforce, tackling security weaknesses should be one of the top concerns on every company's agenda. And it is, according to ADP's global payroll research1. This reports that 99 per cent cent of HR, finance and payroll leaders say data security has become more important in the last 12 months with 46 per cent saying critically so.
While a more dispersed workforce has created challenges, such as an increase in security risks and complex regulations, it has also provided an opportunity for businesses to expand in ways they haven't done before.
Data security: the imperative skill missing within payroll teams
Having advanced digital skills should be a key component in a payroll strategy, yet current labour market conditions are hindering multinationals' efforts. ADP's study indicates that only 64 per cent of global business leaders say that they currently have the data security skill sets they need on their payroll team, with 27 per cent saying they want these skills but lack them.
To help prevent businesses from experiencing a security incident that could impact payroll, it's essential for firms to implement best practices security plans. However, ADP's research found that only around half of global business leaders (52 per cent) have developed a playbook and contingency plan across all their markets to protect their payroll operations worldwide, in the event of cyberattacks or critical system outages.
Going through the motions without an effective plan when it comes to protecting employees' pay-related information is a huge risk. It's also a legal requirement, considering that there are both stand-alone cybersecurity laws and cybersecurity aspects of existing privacy laws already in place. Expansion though presents an opportunity to carry out cybersecurity hygiene and identify where payroll data could potentially be misused or made vulnerable.
Download ADP's guide on safeguarding payroll data to learn how to identify potential risks in your existing payroll system(s), understand industry-based data security standards and discover more about the importance of physical aspects of payroll data security.
Sources: ADP
- The potential of payroll in 2024: Global payroll survey, ADP