Are Your Employment Records Safe in the Cloud?
In light of disruption brought on by recent winter weather and other devastating events like Hurricane Sandy, Paycom, a national payroll and human capital management technology company, reminds us of the importance of disaster recovery and business continuity planning. Today Paycom released an infographic designed to aid businesses looking for cloud-based solutions to remind them of the mandatory and complex HR record retention requirements that can be affected when selecting new technology.
Cloud-based applications offer a less expensive and more efficient alternative to hosting and managing internal hardware and software, but in order to minimize risk it is imperative for businesses to qualify their cloud-based vendor before they sign agreements and turn over sensitive information. Not all cloud technology is equal.
IBM reports 72 percent of all companies are at least piloting a cloud service, and the cloud computing market is expected to hit $72.9 billion by 2015. These numbers indicate as cloud services for businesses continue to increase so does the comfort level with cloud technology.
“Purchasing cloud-based storage and HR technology gives businesses the opportunity to make a quantifiable and very strategic impact on the company,” Paycom CFO Craig Boelte said. “Stability, data security and integration should be discussed in detail with any cloud-based HR technology and storage provider. This is why the checklist we’ve provided is such a great tool for businesses looking to invest in cloud computing.”
Most companies think of intellectual property, legal documents, customer information and accounting records as top priority for secure filing, but paperwork-laden HR departments are subject to complex record retention requirements and some of the greatest legal exposure. There are 17 federal laws that mandate employment record retention requirements, and government contractors are subject to additional requirements as are employers in states with laws governing employee files.
If employment records are not secure in the cloud or elsewhere, then breaches in security and damages for improper record keeping can cost employers hundreds of thousands of dollars in fines and penalties.
“We hope businesses utilize the checklist when choosing a cloud-based HR technology provider, because it will save them money and legal liability down the road,” Boelte concluded.