Nicol Myburgh, Head: HCM Business Unit, CRS Technologies.

Expanding into international markets offers companies exciting opportunities for growth. Beyond reaching broader customer bases and increasing global influence, this venture also opens doors to diverse new talent pools.

However, as Nicol Myburgh, Head of HR Services at CRS Technologies points out, managing a global workforce brings unique challenges, particularly when it comes to safeguarding employees’ sensitive payroll and HR information.

“Navigating the intricate web of data protection laws can quickly become overwhelming, but this is where an employer of record (EOR) is indispensable, ensuring the security of sensitive employee data through comprehensive compliance with local regulations, advanced technology, rigorous certification and a strong focus on employee training and response planning.”

The right side of the law

A key responsibility of an EOR is to ensure that sensitive payroll and HR data is managed in line with each country’s data protection laws. This can be tricky, Myburgh notes, as every country has its own set of rules, but an EOR brings the expertise needed to handle this complexity with ease.

“It ensures that data is collected, stored and processed in line with regulations like the Protection of Personal Information Act (POPIA) in South Africa, the General Data Protection Regulation (GDPR) in the European Union and other local laws. Compliance with these regulations is essential to avoid hefty fines and reputational damage, and keep the business on the right side of the law.”

Leveraging advanced technology

Sophisticated security measures are critical for protecting sensitive information from unauthorised access and cyber threats, Myburgh continues. “An EOR employs robust encryption protocols to ensure that sensitive information is always protected, whether it’s being stored or sent across borders.

“Additionally, strict access controls and multi-factor authentication ensure that only authorised personnel can access sensitive data, while regular security audits and assessments help to identify and address any potential vulnerabilities before they can be exploited.”

The significance of certification

Partnering with an ISO 27001-certified EOR adds a valuable layer of security during international expansion, giving companies the peace of mind that their payroll and HR information is safeguarded by a globally recognised framework.

ISO 27001 outlines best practices for managing information security risks, ensuring that data is protected against threats such as breaches, leaks and unauthorised access, Myburgh explains.

“This certification showcases the EOR’s commitment to high security standards and confirms that it has implemented a rigorous Information Security Management System (ISMS) to keep sensitive data secure.”

The human element

While technology plays a crucial role data security, Myburgh emphasises that the human element is equally important. “Regular training sessions are essential for educating employees on best practices for data protection, such as how to spot phishing attempts and other common threats.

“In the unlikely event of a data breach, the EOR has a comprehensive response plan ready to go. This plan is specifically designed to swiftly contain the breach, minimise any damage and notify affected parties as required by law.”

In today’s interconnected world, partnering with an EOR is a smart move for any business aiming to protect sensitive payroll and HR information across borders, Myburgh concludes. “With the assurance that your international workforce is managed with the utmost care and professionalism, and that employee data is securely handled in line with global standards, companies can focus on what really matters – growing the business.”