Data security is an increasing concern for many small business owners. While headlines focus on data breaches at larger companies, cybersecurity statistics suggest that as much as 43% of all cyberattacks are against small businesses. Cybersecurity is thus a pressing concern, both for the sake of your customers and for your employees.
If you’re looking to a PEO for HR outsourcing solutions, you may be concerned about how secure your company’s data will be with your new partner. This concern for security is an important consideration for small business owners working with a PEO, as the organization will be responsible for a great deal of your employees’ personal information.
PEOs can be secure with your personal data. However, before you agree to join with a PEO, you should know what policies your new partner has for protecting the data it houses.
If you need help finding a secure PEO, NetPEO can help you. Our PEO brokers have years of experience helping all types of business owners find the right PEO. We can help you find a PEO that has the data security protocols you need to feel safe. Just call us today at (678) 376-1212 to get started.
Determining the Quality of Your PEO’s Cybersecurity
Among the many factors you should look for in a PEO is a robust cybersecurity infrastructure. Your PEO will have access to critical pieces of your employees’ personal data, including social security numbers, home addresses, birthdates, and more. If the PEO is administering your employees’ benefits, they may have access to data protected by HIPAA.
Feeling secure that your PEO will manage this information properly is important for your own peace of mind and can help quell any potential liability concerns.
Understand What Laws Govern PEOs’ Data Policies for Clients
There are no universal guidelines for data privacy in the U.S. today. Instead, data privacy laws are different at the federal and state level, and they can vary across industries.
PEOs may have clients in multiple states. As such, they may be required to have security procedures in place that meet these different standards. Ask your PEO partner about its client base and what data privacy laws are applicable to them.
Assess Their Internal Data Security Requirements
You should assess your PEO partner’s internal security policies. While no system can be 100% foolproof, many steps can be taken to prevent internal and external data breaches.
Ask your PEO partner about:
- Their employee password security requirements
- Their written information security program
- Employee training on data breaches and data security best practices
- Steps taken to prevent successful phishing attempts and other malicious attacks
You should be able to get a sense that all the people working at your PEO understand the need for the best data security practices.
Meet With Their IT Department
When you meet your new PEO’s team, make sure that you also get to meet members of their IT department. Robust cybersecurity policies require company-wide compliance, but their IT department may be better able to address specific concerns about how the department views and handles private data.
Improve Your Own Cybersecurity
While it is important that you feel secure with your PEO’s cybersecurity infrastructure, it’s also critical that you make sure to protect your employee’s personal information. A robust cybersecurity program at your PEO won’t do your employees much good if their data can be compromised on your end.
The Federal Trade Commission (FTC) recommends that all businesses have a sound data security plan. A sound data security plan should entail:
- Keeping track of what personal information you have access to, both physically and digitally
- Only holding onto private information that is necessary for your business
- Maintaining physical security, electronic security, and up-to-date employee training on data security policies and practices, as well as monitoring security policies for contractors
- Disposing of sensitive information safely as soon as your need for it is complete
- Devising a plan to handle security incidents
Work With a PEO Broker to Help Secure Your Data
Finding the right PEO means making sure that they have the services your company needs, pricing options that work for your budget, and the ability to keep your data secure. Narrowing this down can be a time-consuming project for an already overworked small business owner.
Fortunately, you don’t have to work alone on finding the right PEO for your company. The PEO brokers at NetPEO are here to aid in your search. Using our network of trusted providers, we can help you find a PEO that will securely provide you with the services you need.
For your free initial needs analysis, call the PEO brokers at NetPEO by dialing (678) 376-1212 or complete the contact form on the right side of this page.