What are the HR Manager’s Obligations Regarding Confidentiality?

A number confidentiality obligations for human resources managers have been designed to safeguard employee information as well as information regarding business decisions and strategy.

In order for human resources professionals to safeguard employees, protect the business from competitors, and stay within regulations governing the human resources profession, confidentiality must be strictly maintained in several key areas. Human resources professionals who are unfamiliar with these requirements can benefit from learning a few basic pieces of information that should always be kept highly secure and confidential.

1. Private Employee Information

The nature of human resources work means that professionals often come into contact with employee information, ranging from basic contact information to Social Security numbers and tax details. It should go without saying that this information is highly sensitive and confidential, but many human resource managers often need to remind themselves and their employees just how important it is to keep this information safe, private, and away from the public eye.

In the modern era of electronic data storage and threats from hackers, this often means setting a corporate policy that keeps HR and employee data separate from other records and pieces of information. Usually, that means storing private employee data on a separate, cloud-based server with SSL encryption and other technologies. In many cases, the confidential nature of this data also forces HR managers to develop a system of record and accountability that shows who accessed sensitive data, when the data was accessed, and why it was accessed.

2. Legal Challenges and Sensitive Information

A human resources department often deals with data concerning legal issues and company litigation. Due to the nature of complex corporate litigation, this information should always remain confidential. Many companies choose to strictly control information to legal information regarding company liability, lawsuits, and strategic decisions. Typically, only a select number of HR managers have access to this information at any given time in a larger organization.

In addition to information concerning complex litigation, HR professionals must respect the confidentiality of Workers’ Compensation cases, employee medical data and information, injury documentation, and more. Much of this information is protected by the HIPAA Act, which also enforces strict financial penalties for organizations that don’t properly respect the security and confidentiality of employee medical records and related information.

3. Strategic Decisions and Business Strategies

In order to maintain a competitive advantage, many companies must make strategic decisions without the knowledge or input of their broader employment base. High-level business decisions and strategic imperatives must be kept confidential by HR managers. In most cases, HR managers are privy to these details because they’ll eventually be responsible for informing lower-level employees, hiring new employees to meet company objectives, and living up to equal opportunity laws in the process. Divulging these details, or storing them in a manner that is not secure, could place the company at risk. It could also result in major headaches related to ethics, hiring, and employee retention.

Confidentiality is a Key Part of HR Management

Human resources managers are responsible for managing more than their employees and basic corporate compliance. They must also handle the confidential details that help the company deliver benefits, meet strategic objectives, and handle legal challenges that might derail long-term plans. For this reason, the confidentiality obligations for human resources managers are significant and must be a top concern at all times, no matter the organization’s size or strategic objectives.

Related Reading: What are the Biggest Challenges Facing Human Resource Managers?