Are you keeping benefits data in your HR system? While there are advantages to storing this data, there are dangers too. If you are considering adding benefits data to your HRMS or already have it stored, here are some things to keep in mind.

Benefits data, or data needed to support benefits processes, can include employee enrollment in medical, dental, life insurance and/or similar plans. It also includes sensitive data that are tied to each employee, such as social security number, date of birth, the employee’s full name and home address. If a health plan includes dependents, similar data will be required from these individuals as well. Such a collection of data associated with an employee can become a target for those with malicious intent or those seeking to perform identify theft.Benefits_Data_Security_v2

HRMS systems play an important role in storing this data, but it requires additional security to protect the data from being exposed. One of the first things to ask is if you have a business reason to store the data that you are keeping. For example, if none of your vendors or processes need a dependent’s social security number, then it’s best not to store that data in the first place. It’s also healthy to review your outgoing interfaces annually. Question your vendors to confirm that the data on your interfaces is needed for their processes. Finally, consider carefully who has access to this data. If a member of the HR department is not using this data in their everyday work, then best practice is to remove the access.

Benefits data can be complicated, but if you keep it secure, holding it will provide advantages for your business.

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