Time-tracking systems for employees are software applications that enable managers and employers to keep track of and assess the working hours, tasks, projects and activities of their staff members. These systems offer advantages, including time and cost savings, increased accountability and transparency, improved productivity and efficiency, enhanced collaboration and communication and better employee engagement and satisfaction. 

However, knowing the challenges and risks associated with data security and privacy when using these systems is important. In this article, we will explore some of the issues concerning data security and privacy in the best employee time tracking systems while discussing strategies to address them effectively.

What are the Data Security and Privacy Issues in Employee Time Tracking Systems?

Employee time tracking systems gather, store, and process data. Transmit a volume of sensitive information related to employees and their work. This information may include details (such as name, email address, phone number, etc.) related to specifics (like tasks, projects, deadlines, goals, etc.) activity data (such as app usage, web browsing data, screenshots, keystrokes, mouse clicks) location details (such as GPS coordinates and geofencing zones) and financial particulars (like pay rates, invoices, expenses). 

While this data holds value for both employers and employees alike, it is also susceptible to access or misuse by hackers or malicious insiders. It’s important to be aware of security and privacy concerns associated with employee time-tracking systems. Some of the issues that may arise include:

Data Breaches: Unauthorised access to data stored or transmitted by employee time tracking systems can occur through means such as passwords, phishing attacks, malware infections, network vulnerabilities or human mistakes. When data breaches happen, they can lead to consequences like loss or corruption of data, identity theft, fraud, blackmail, damage to reputation, legal liabilities and regulatory fines.

Data Privacy: The concept of data privacy pertains to individuals’ ability to control the collection, usage, sharing and deletion of their data by employee time tracking systems. Data privacy violations can occur when these systems gather irrelevant data, employ the data for purposes not agreed upon by employees, disclose the data to parties without the employee’s knowledge or consent or neglect to remove the data once it is no longer necessary or requested by employees. Such violations can lead to a loss of trust, dissatisfaction, resentment and legal action on the part of employees.

Data Compliance: Data compliance refers to the responsibility of employee time-tracking systems to adhere to the laws and regulations that govern how data is collected, used, stored and transferred across jurisdictions. Ensuring data compliance can be a task for employee time-tracking systems that operate in countries or regions with differing or conflicting data protection laws. 

For instance, there are regulations like the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in the United States and the Personal Data Protection Act (PDPA) in Singapore. Noncompliance with data regulations can lead to penalties, fines or even bans imposed by authorities.

How to Address the Data Security and Privacy Issues in Employee Time Tracking Systems?

Employee time tracking systems can address data security and privacy issues by adopting some of the best practices and measures, such as:

Data Encryption: Data encryption involves converting data into a format that authorised individuals can only decipher using a key. Data encryption in employee time tracking systems helps safeguard the information against access, misuse, theft, loss or harm. When stored (on devices or servers), these systems must encrypt the data. During transmission (over networks or the Internet).

Data Minimisation: Data minimisation involves gathering and keeping the pertinent information required for employee time-tracking systems. By practising data minimisation, these systems can effectively mitigate the risks and expenses associated with data security and privacy. Employee time tracking systems must refrain from collecting or storing any sensitive data that is unnecessary or has not been consented to by the employees, including biometric information, health records, political viewpoints, etc.

Data Consent: The authorisation of employees to employee time tracking systems allowing them to gather, utilise, share or erase their information is termed as data consent. This practice of data consent enables employee time-tracking systems to honour the rights and preferences of employees concerning their data privacy. These systems must acquire informed and unambiguous consent from employees before collecting or utilising their data.

Data Security Policy: A data security policy refers to a collection of regulations and principles that outline the procedures and safeguards employed by employee time-tracking systems to manage and safeguard the data they gather. A data security policy aims to establish a uniform structure to ensure the confidentiality and privacy of information within employee time-tracking systems. These systems need to develop and enforce a data security policy encompassing areas like categorising data controlling access to implementing backup and recovery measures addressing potential breaches.

Examples of Employee Time Tracking Systems with High Data Security and Privacy Standards

You’ll come across various employee time tracking systems in the market, each offering features, benefits and pricing options. Let me share examples of the best employee time tracking system that emphasises ensuring your data’s security and privacy.

ProHance: ProHance is a gen-next workplace analytics and operations enablement platform that helps leaders make smart decisions in managing a distributed and hybrid workforce. ProHance uses advanced encryption algorithms to secure the data at rest and in transit. It also follows the principle of data minimisation and collects only work-related information from employees.

Hubstaff: This platform is used for managing your workforce, enabling employees to be more productive. It gives employees control over the data they share with their managers or employers.

Toggl: Toggl is a software that tracks time and helps employees keep track of the time they spend on tasks and projects. It prioritises data consent. Only collects relevant information for its intended purposes.

Conclusion

Using employee time tracking systems can simplify your operations. It’s crucial to prioritise data security and privacy. Opting for reputable best employee time tracking software, like ProHance, Hubstaff, Toggl or Time Doctor, is recommended to ensure protection. Many companies trust ProHance as a workplace analytics and operational support platform that empowers leaders to manage distributed and hybrid workforces efficiently. ProHance not only safeguards and minimises the data it collects but also offers real-time insights, streamlines tasks, and seamlessly integrates with popular tools.