In today’s world, where data breaches and privacy violations make headlines almost weekly, businesses are increasingly concerned about protecting sensitive information. While IT and legal departments typically handle data protection, HR departments deal with some of the most sensitive data an organization holds—employee records, health information, payroll data, and more. This leads to the question: should every HR department have a Certified Data Protection Officer (CDPO)?
The Growing Complexity of Data Protection Laws
HR departments are already overburdened with numerous responsibilities, from recruitment to employee relations. However, the complexity of data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe and various data privacy laws in countries like the Philippines, Singapore, and the U.S., adds a new layer of responsibility for handling employee data.
Failure to comply with these regulations can result in massive fines and damage to a company’s reputation. In 2020 alone, companies faced over $182 million in GDPR fines, with more than 281,000 data breach notifications across the EU. Given the potential consequences, it’s increasingly clear that organizations need an in-house expert to navigate the complex web of data privacy laws, particularly within HR, where the risk of mishandling sensitive information is high.
Why HR Is a High-Risk Department
Employee data is one of the most valuable (and vulnerable) assets within an organization. It includes everything from Social Security numbers and health records to performance evaluations and disciplinary actions. The digital transformation of HR processes—such as electronic records and cloud-based HR systems—has increased the risk of data breaches. According to IBM’s 2022 Cost of a Data Breach Report, employee records are among the most targeted types of data, accounting for a significant percentage of breaches.
Considering this, HR departments are a natural target for cybercriminals. The argument for having a Certified Data Protection Officer (CDPO) in HR becomes even stronger when we realize that HR professionals often lack the specialized training needed to ensure compliance with data privacy laws.
What Does a CDPO Bring to the Table?
A Certified Data Protection Officer brings a wealth of knowledge about data protection laws, data processing best practices, and the technical measures required to safeguard sensitive information. The CDPO certification focuses on developing expertise in managing and securing personal data across an organization, particularly in high-risk departments like HR.
Having a CDPO in your HR department not only ensures compliance with local and international data privacy laws but also instills confidence in employees, knowing that their personal information is being handled responsibly and securely.
Moreover, a CDPO provides training to the rest of the HR team, ensuring that data privacy principles are followed across all processes, from hiring to employee exits. They also handle data breach responses, ensuring the organization remains compliant with legal reporting requirements in case of a breach.
The Counterpoint: Are CDPOs Overkill for Smaller Organizations?
While it’s easy to see the benefits of having a CDPO in larger organizations with thousands of employees and complex HR systems, smaller businesses might question whether this role is necessary. For companies with fewer resources, assigning data protection responsibilities to an external consultant or a multi-disciplinary role, such as IT or legal, may be a more cost-effective option.
However, even for smaller companies, the cost of non-compliance with data protection laws could far outweigh the investment in hiring or training a CDPO. As data protection regulations become stricter and more far-reaching, the need for specialized knowledge becomes crucial, regardless of company size.
Conclusion: The Case for a CDPO in HR
While the decision ultimately depends on the organization’s size, industry, and risk profile, having a Certified Data Protection Officer in HR can provide a vital layer of protection for sensitive employee data. For larger organizations, it’s almost a necessity. For smaller companies, investing in a CDPO—or at least training HR professionals in data protection—can mitigate significant risks.
In an era where data privacy is paramount, the role of a CDPO in HR is more than just compliance—it’s about building trust, safeguarding employee information, and ensuring long-term business security.
