How secure is your employee data from the growing threat of cyberattacks? More and more data breaches are happening, affecting organizations of all sizes. For payroll and HR professionals, these breaches carry heightened risks due to the sensitive nature of employee data, including Personal Identifiable Information (PII) and financial records.
The Oct. 2023 breach at UKG, a well-known payroll and HR provider, serves as a stark reminder that no organization is immune to cyberattacks. This incident underscores the need for robust cybersecurity measures to protect against potential threats.
Recent findings from the 2024 Cost of a Data Breach Report reveal how critical it is for organizations to invest in robust cybersecurity measures to protect employee data. This article explores the true cost of a data breach—to your company and to your employees.
The 2024 Cost of a Data Breach Report, conducted by the Ponemon Institute and sponsored by IBM Security, analyzed 604 organizations impacted by data breaches between March 2023 and February 2024. The findings highlight significant increases in both the frequency and financial impact of breaches:
Organizations that invest in advanced security measures, like those offered by Greenshades, can significantly reduce the likelihood of data breaches, and the associated costs that come with them. Features such as multifactor authentication and regular vulnerability assessments are proven to mitigate risks and keep sensitive data secure.
The 2024 report highlights emerging challenges, particularly the growing risks associated with shadow data—unmanaged information stored outside of secure systems. Shadow data was a factor in 35% of breaches, making these incidents 16.2% more costly and requiring 24.7% longer to resolve compared to breaches without shadow data. Payroll and HR systems are especially vulnerable to this issue, as sensitive files are frequently shared across multiple platforms, increasing the risk of exposure.
Overall, these numbers underscore the growing financial stakes for organizations that handle sensitive employee data.
A breach of payroll and HR systems has implications that extend far beyond financial losses. It creates stress for employees and erodes trust in the employer.
Breaches involving employee PII accounted for 40% of all breached records in 2024. Each record cost an average of $189, making these breaches one of the most expensive types organizations face.
The effects of data breaches on employees are personal and often long-lasting. When PII is exposed, individuals are vulnerable to identity theft, fraud, and ongoing concerns about personal security.
Employees frequently invest significant time and energy resolving issues caused by breaches, such as monitoring accounts and updating credentials. They also expect their employers to actively mitigate these impacts by offering support such as identity theft protection, credit monitoring, or other forms of compensation.
By taking proactive and empathetic steps, companies can restore trust and demonstrate their commitment to employee well-being. With Greenshades’ robust security framework, businesses can protect employee data and prevent breaches before they occur. Our platform’s multifactor authentication, IP whitelisting, and vigilant monitoring create a secure environment for payroll and HR systems, giving employees and employers peace of mind.
A recent breach involving UKG Inc. exemplifies these challenges. In October 2023, sensitive employee information, including Social Security numbers and salary details, was inadvertently shared. UKG responded by offering 24 months of free credit monitoring to affected individuals.
Data breaches affect more than just the bottom line—they disrupt business operations and erode long-term organizational health.
For industries like payroll and HR, where continuity is critical, the stakes are even higher.
The financial and temporal impacts of breaches also vary by industry. Highly regulated sectors like healthcare and finance face longer recovery times and higher costs due to stringent compliance requirements and penalties. By contrast, less regulated industries tend to resolve breach-related expenses more quickly.
Data breaches can have far-reaching consequences, but businesses that take proactive steps can minimize downtime, accelerate recovery, and safeguard their operations. By combining technical defenses, employee training, and response planning, organizations can build a resilient security framework.
Maintaining a comprehensive approach to security can enable your team to maintain continuity even in challenging circumstances. These proactive measures can strengthen your organization’s ability to detect and prevent threats:
Greenshades ensures a fortified digital environment for seamless workforce management. Our platform undergoes regular SOC1 and SOC2 evaluations, prioritizing data security and confidentiality. With comprehensive vulnerability assessments, we reinforce its robustness against threats. We also provide:
At Greenshades, we recognize that technology alone cannot eliminate the risk of data breaches. Addressing the human element is crucial, as even small mistakes can lead to significant consequences. Empowering your workforce with knowledge and tools reduces risks and fosters a culture of security awareness.
Key initiatives to consider include:
While preventive measures are essential, businesses must also evaluate their readiness to respond effectively to a breach. Key strategies can significantly influence the overall cost and duration of a data breach:
By adopting these strategies, businesses can reduce financial losses and improve their resilience to future breaches.
Don’t let data breaches disrupt your business or jeopardize employee trust. With Greenshades’ proactive security measures, you can safeguard sensitive information and maintain operational continuity.
Contact us today to learn more about our security offerings and how we can help safeguard your organization against the unforeseen.