Safeguarding Employee Data: Why SOC 2 Compliance Matters in HR Tech

For business leaders or human resources, it’s important for you, your organization, and your people to know they can trust the platform or software they use with their sensitive data. Cooleaf is proud to announce that we are SOC 2 security compliant, putting your people’s information security first.

SOC 2 is a dynamic compliance that service organizations, like Cooleaf, undergo to show commitment to standard trust service principles that keep you and your company’s data secure.

In the new year, about 50% of HR professionals and workplace leaders are looking to adopt more AI and HR tech efficiencies, which means data security should be at the top of your list when it comes to shopping for the next CRM, HRIS, or even employee engagement platform. These providers house important employee and business information, so it’s up to you to protect against potential threats from the start.

Strong security practices prevent data breaches, which can impact employee trust and an organization’s reputation. More importantly, creating an online workspace that’s safe and secure shows your employees that you value their privacy too.

Cooleaf’s SOC 2 compliance sets us apart in HR tech and tells our partners that we prioritize and respect their privacy and information.

What does SOC 2 mean and why is this important for HR professionals? Read below to learn the basics and best practices for HR tech and security controls.

What is SOC 2 compliance?

SOC 2— short for System and Organization Controls 2— is a voluntary compliance standard developed by the American Institute of Certified Public Accountants (AICPA). It’s a difficult process that requires an extensive third-party review of an organization’s operations and security protocols.

The SOC 2 framework is broken into 2 types and must be performed by an independent credited CPA firm. SOC 2 Type 1 is a smaller audit that looks at internal controls and processes at a single period of time and can be conducted in a few weeks. Organizations go towards this option depending on their timeline, and many inevitably undergo Type 2 audits down the line.

Most trusted service organizations will have SOC 2 Type 2. It’s more extensive and does require more time and resources because it covers the following 5 compliance requirements, otherwise known as Trust Services Criteria (TSC):

• Security - protecting information from unauthorized access
• Availability - employees and users can count on you
• Processing integrity - checking to see if platform operations work as intended
• Confidentiality - protecting confidential information for users
• Privacy - safeguards against unauthorized users

Cooleaf has SOC 2 compliance Type 2, ensuring our customers and their teams are secure.

Why SOC 2 compliance is important for HR tech

Service organizations across several industries that offer software (Saas), platforms (Paas), or infrastructure as a service (Iaas) undergo SOC 2 accreditation to showcase their commitment to security compliance and data privacy.

As an HR professional, your team might rely on service providers to help you manage everything from employee benefits to onboarding, so it’s important to know that your employees’ sensitive information like social security numbers, Driver’s Licenses, or trade secrets are secure.

Regulations like the General Data Protection Regulation (GDPR) protect individuals online, but it is up to the employer to maintain a safe, secure online work environment. That’s why Systems Organization Control (formerly Service Organization Control) works with providers like Cooleaf to ensure that teams can trust and feel confident while using our platform.

Having SOC 2 compliance, Cooleaf works hard to meet the rigorous standards to prevent data breaches and ensure our customer data is secure. Specifically with Cooleaf, as an employee engagement platform, you can trust that employee information, recognitions, comments, and activity on the app or desktop are secure.

Data security best practices for HR teams

Now that you understand SOC 2 compliance, prepare yourself and your team with the best cybersecurity practices too!

Train your team on security practices

Many teams utilize annual or bi-annual security training to equip their team members with the best practices on individual cybersecurity and risk management. Give employees the resources on simple things they can do at work to protect themselves and their team.

Also use this opportunity to walk your team through your organization’s HR Data Security Policy, which should include the basics like how your organization manages CIA:

• Confidentiality - preventing unauthorized access to sensitive data
• Integrity - maintaining accurate information
• Availability - who should have access to certain information or drives has proper access

Require double authentication log-in & strong passwords

Multi-factor authentication like having phone verification or additional secure authenticator apps to sign into corporate accounts is a standard step that can help prevent any security incidents at the first layer.

You should also require strong passwords and recurring updates as part of your team’s offense to potential risk. As a tip, don’t require password updates too often as this can diminish the strength of the password. People tend to get a little lazy when they need to create passwords multiple times a year.

Conduct a cyber security assessment

When it comes to cyber attacks, your best defense is a strong offense. Work with your team to undergo a risk assessment or full cyber security audit.

There are three main types of cyber security assessments: compliance, risk, and maturity assessments. Work with your IT team or even a third-party risk management organization to complete a full audit report that will test vulnerabilities and recommend best practices or training for your team.

A vulnerability scan will help you review your IT infrastructure, from web applications, networks, APIs, etc. It can help you determine security measures for the future. Be sure to continuously check throughout the year too!

Looking for a secure employee engagement platform?

Finding a platform you can trust for your employee engagement initiatives doesn’t have to be hard. Cooleaf prioritizes your comfort and security, so your people can participate in employee recognitions, learning and development training, or wellness activities confident that they’re data is secure.