Press Play: The Rising Stakes of Data Security: Why SOC 2 Compliance Matters More Than Ever for HR

Last week, we announced a major milestone: our SOC 2 compliance. It might not be the most glamorous news, but it's sparked important conversations with our customers, particularly those in HR and People teams. The significance of this achievement lies in the critical nature of the data these teams handle.

HR professionals are entrusted with a treasure trove of sensitive information: employee records, applicant details, partner data, and even customer information. Protecting this data isn't just a best practice; it's an absolute necessity. The risks associated with data breaches are far-reaching, impacting not only the company itself but also every stakeholder who interacts with the business.

Recent headlines underscore the urgency of this issue. Disney, Truist Bank, and Paychex have all fallen victim to data breaches, exposing employee information and highlighting the vulnerability of even the most established organizations. In the UK alone, employee data breaches surged 41% in 2023. The consequences of these breaches are significant. The IBM Cost of a Data Breach Report 2024 reveals that the average cost of a data breach now stands at a staggering $4.45 million (up 10% from 2023 and the most expensive global average ever).

For HR teams, the stakes are particularly high. The personal and sensitive nature of the data they manage makes them a prime target for cybercriminals. The fallout from a breach can be devastating, affecting employee morale, jeopardizing recruitment efforts, and even exposing the company to lawsuits. In this landscape, SOC 2 compliance is more than just a checkbox. It's a powerful demonstration of a company's commitment to data security. It proves that an organization has implemented and maintains rigorous controls to protect sensitive information.

What a SOC 2 Type 2 attestation proves

Data security

A SOC 2 report proves that a company has robust security measures in place and that they consistently follow these practices at all times. It's not just about having good intentions, it's about proving that you follow through.

Risk mitigation

Think of SOC 2 companies as being prepared for just about anything. They have plans and procedures in place to deal with various challenges, including data breaches, system outages, disaster recovery, and more. These plans aren't just theoretical; they've been tested and verified by independent auditors.

Reliability and availability of the service

SOC 2 isn't just about keeping data safe, it's also about making sure the service is up and running when you need it. It's like having a guarantee that the platform will be there for you.

Shows continuous improvement

SOC 2 isn't a one-time thing. It's an ongoing process that encourages companies to constantly improve their security measures as they grow and evolve. It's a commitment to always being and doing better.

Trusted — and safe — partnerships

For HR teams, partnering with SOC 2 compliant vendors is essential. It provides assurance that their data is handled with the utmost care and that their vendor prioritizes security.

The increasing frequency and severity of data breaches serve as a stark reminder that security is not a luxury but a necessity. For HR and People teams, safeguarding sensitive employee information is paramount. SOC 2 compliance offers a crucial layer of protection, ensuring that data is handled responsibly and securely. In a world where data breaches are increasingly commonplace, choosing SOC 2 compliant vendors isn't just good business, it shows that they care about their customers.

With SOC 2-compliant vendors, businesses can trust that their data is safe and just focus on doing great work.

Are your company’s software vendors SOC 2 compliant? If they’re not (or if you’re unsure), we’d love to discuss why Vouch takes a different approach to many other vendors in the space.