On file in the cloud

There is no time to lure the best minds, support employees, push through flexible working hours or promote the corporate brand. However, if their processes run automatically, transparently and tightly, this creates scope for strategic work.

This is precisely where modern HR solutions such as the digital personnel file or a certificate generator come in. Cloud applications in particular offer clear advantages: for example, fast implementation, low operating and investment costs, better scalability and location-independent access options.

Of course, such solutions can also be seamlessly integrated into SAP ERP HCM and SuccessFactors systems such as Employee Central. This means that the path of a document through the HR department can be mapped quickly, efficiently, error-free and seamlessly. But is the cloud really the right place to store highly sensitive HR data and documents?

The fact is: without suitable technology, it will be difficult to equip yourself adequately for the challenges of the future in HR. What's more, HR managers who fail to be part of the digital transformation will make themselves superfluous in the long term and thus jeopardize their existence.

However, it is also a fact that personal data is always involved in the HR sector. And as soon as this data is involved, particular caution is required. It is therefore clear that the topic of data protection and security is even more important here than in other areas of the company.

And where is data more secure than in a locked filing cabinet in the company or, if it has to be digital, then at least on your own servers in the basement? After all, that way you have control yourself.

What are professionals for?

Many people forget that there is always a latent risk of irrevocably losing all data in the event of a fire, water damage or burglary when storing it in their own company. It is also difficult to comply with statutory retention and deletion periods within the company, and this requires enormous administrative effort.

For example, application documents may only be archived for six months or warnings for two to three years. If personnel data is stored digitally in-house, the IT department always has access to all information.

No matter how you look at it, someone is always the administrator. In a professionally operated cloud, on the other hand, comprehensive rights management can be used to define and control who has access to which data and what they are allowed to do with it - i.e. read, print or edit.

Ensuring role management by your own IT department is a Herculean task with a large workforce or frequent employee changes. Added to this is the "weak point of employees".

How quickly can a single employee unknowingly cause major damage to the company in a hurry with an incorrectly set checkmark for access rights or with an infected USB stick?

Above all, however, hardly any IT department is in a position to offer such a high level of availability, access and data security for sensitive information as professional data center operators can.

This is because they offer a wide range of precautions that usually far exceed the measures taken by the company. All major cloud providers offer their customers detailed service level agreements (SLAs) that guarantee companies the highest levels of service and security.

This includes regular patching, i.e. the installation of updates, proactive monitoring to prevent any foreseeable damage and automated troubleshooting in systems.

Experience shows that this works less smoothly and automatically in many companies. By opting for the cloud, you are handing over your data to professionals who are familiar with it instead of relinquishing control.

Not to forget: As specialists, cloud providers can guarantee smooth operation without data loss even in the event of a disaster. Sophisticated, geographically distributed backup systems ensure reliable backup, even if a data center should fail. Data is also transferred and stored in encrypted form.

No cloud is not a solution either

The location of the cloud provider plays an important role in this context. It is advisable to choose a provider based in Germany, because as such it is subject to the strict German data protection guidelines.

With a service provider from the USA, on the other hand, you are on shaky ground. This is because German companies themselves are responsible for ensuring compliance with local data protection guidelines.

They may only transfer personal data to non-European countries if there is an adequate level of data protection there. Otherwise there is a risk of heavy fines. And of course, not all clouds are the same.

Choosing the right cloud provider and model is therefore crucial. Storing sensitive personnel documents in the cloud requires secure and reliable data transmission to the server. Companies should therefore only operate HR solutions such as digital personnel files in a controlled cloud.

If you also transfer the data to the server in encrypted form via a secure VPN tunnel, you are on the safe side. A sophisticated authorization concept regulates how users identify and authorize themselves.

This means that only authorized persons can access certain personal documents. Encrypting the documents on the server provides additional data security. Special filing formats guarantee legally compliant and audit-proof archiving of all personnel data.

The stored information is available for retrieval, traceable, unchangeable and secure on the server. HR managers with the highest level of authorization can view and edit information on all employees at any time at the click of a mouse.

Given the right model, the cloud makes it possible to quickly achieve great success with little investment in efficient and transparent HR processes. Anyone who forgoes the comprehensive benefits of modern cloud solutions due to security concerns is also ignoring the enormous savings potential and ultimately risking their own competitiveness.

In plain language, this means that no cloud is not a solution. Especially as digital personnel files from the cloud offer significantly greater flexibility, efficiency and great cost-saving potential compared to paper-based administration.

Thanks to the quickly retrievable, digitized documents at the touch of a button, the HR department gains greater information and information readiness, which benefits both employees and managers.

Upstream and downstream processes such as the automatic creation of documents, approvals and authorizations as well as access from mobile devices can now be combined with a digital personnel file on a modular basis.

Pioneer of digitalization

More and more companies are recognizing precisely these advantages. A survey by Oracle and IDG Connect confirms that for the majority of companies - even in Germany, which is particularly skeptical - security concerns with regard to the cloud are increasingly receding into the background.

This also applies to the Industry Solutions division of Lufthansa Systems. Under the project name "HR Archive for LGBS - The digital personnel file at Lufthansa", the globally active Group converted all subsidiaries to a standardized system.

The digital personnel file in the cloud now enables the location-independent processing and centralization of more than 100,000 employee files and has thus helped to optimize HR processes at Lufthansa Group-wide.

All in all, the cloud offers great potential for savings and benefits for users at the same time - important prerequisites for future competitiveness. Personal data is usually even more secure with a certified, professional provider than in your own company.

So there is no longer any reason to insist on paper-based processes. This also or especially applies to HR. With the right solutions, the HR department can even take on a pioneering role and create more time for strategic tasks by automating administrative processes.