A Holistic Payroll System - The Optimal Solution To Protect Information Against Cyber Attacks
When did the payroll system get out of business's hands? Businesses started to understand payroll is more than simply calculating salaries and bonuses. Their payroll process became bloated with plenty of information from various systems related to attendance checks, leave, and overtime,... and companies will have to establish them all. However, this approach poses major problems when it comes to preventing and mitigating cyber threats.
Using multi-party HR solutions comes with disadvantages
The HR outsourcing market has witnessed exponential growth over the past two decades, especially after the Covid-19 outbreak. A report by Global Industry Analysts, Inc. estimated that the market value of HR outsourcing reached $32.8 billion in 2020 and is expected to reach 45.8 billion USD in 2027, with annual growth of 4.9%. Accordingly, payroll outsourcing services are still a lucrative market, accounting for 46.5% of the total market value of HR outsourcing.
From the corporate perspective, outsourcing a comprehensive payroll system with multiple functions is always associated with financial challenges. This fosters many businesses to consolidate various service providers, such as payroll systems, self-service systems, timekeepers, etc., with the aim of cost reduction and operation optimization. Despite all the fringe benefits, the use of different systems comes at a price that poses great security risks for businesses, including cyber-attacks and information thefts. According to Trustwave Global Security, decisions to use outsourcing services from untrusted providers may lead to 63% of information and data breaches. Consequently, businesses will suffer heavy damages, estimated that the global loss due to cyberattacks in 2020 is up to 600 billion USD.
Nevertheless, the report states that up to 73% of businesses do not have a backup plan for their HR and payroll systems in case of an unexpected interruption. A recent PwC survey also reveals that only 40% of businesses understand the risks of data theft when working with third parties.
That is not to mention the complexity and hassle of managing a large number of providers concurrently. A typical example is the case of Mai Anh - HR manager at a frozen seafood processing import-export company, shared: "It is difficult to manage distinct tasks with each individual service provider. The worst possible is a tool can run into errors or need to change and updated. Then, we will have to go through a time-consuming process to fix and update all systems at once for synchronizing".
How to avoid falling into the data leak trap when outsourcing?
For businesses, outsourcing is an efficient solution that takes advantage of external resources to optimize costs and improve operations management inside. However, it is worth noting that companies may confront the hidden threats of outsourcing, namely important information leaks. Talentnet's experts - the leading HR solution provider in Vietnam, suggest three valuable tips for businesses to implement outsourcing without the fear of cyberattacks:
Screening international standard systems: Firms need to conduct clarification of their present information storage methods to establish core requirements of effective information security standards for service providers such as ISO 27001 certification. Besides, outsourced systems must meet the reliability criteria of customer data management services such as SOC II. By doing this, businesses can shortlist reliable and qualified service providers before handing over sensitive information.
Establishing preventative measures, back up data, and ensure continuing operations under any circumstances: Situational risks of natural disasters and epidemics are unavoidable and will cause payroll disruptions or severe system damages. In those cases, a professional payroll service provider will always have risk prevention measures such as regularly backing up data, running an alternative system simultaneously, or recovering data remotely. These are to maintain the workflows even when the primary system encounters failure. In addition, having specific restrictions on providing only the data necessary for payroll work can help mitigate significant losses when a data breach occurs.
Selecting an end-to-end HR solution: If facing trouble managing multiple outsourced services, companies should consider choosing a one-stop-shop of HR services that has full capability of providing a complete solution for their business.
The HR department will find it easier to control and monitor operations as all the needs are met by a single provider. Tasks are synchronized to facilitate a seamless process and reduce the risk of system collapse, thereby increasing work efficiency and reassuring businesses from the anxiety of information theft.
In today's highly competitive era, Talentnet's holistic payroll service has received great credibility and appreciation owing to its total solution package. It covers all tasks with diversifications from the international standard payroll system, a self-service dashboard easily accessed by both websites and mobile phones, employee information management services (such as holiday registration, overtime, insurance registration, etc.), and so much more.