Using an FMS helps reduce the risk of GDPR non-compliance
GDPR has several implications for HR. Here are three major areas of risk for organisations who use freelancers:
Personal data should only be held for as long as is needed, and only used for the purpose it was collected. There are wider implications around HR storing and collecting job applications, but for Freelancers an organisation should only collect and store information that will enable accurate allocation of work, and prompt payment.
Whereas there is little control over what data is collected and stored in an Excel file, a freelancer management system provides a solution through creating a standardised, compliant set of data fields held on any given freelancer.
The freelancer management system also provides a simple method for removing freelancer data after projects or engagements are complete.
Demonstrable transparency and accountability
Organisations must be able to provide details of how and where they collect, store and process personal data. GDPR provides individuals with free access to this data through a Subject Access Request.
For the organisation who has decentralised Excel files containing freelancer data, it will be nearly impossible to provide a complete view of the data they hold.
A freelancer management system provides a central, controllable facility where all freelancer data is stored. Each freelancer is also provided real-time access to their data via a secure platform, which greatly simplifies the processes of Subject Access Requests.
Securing people's data is one of the main objectives of GDPR. In the scenario where a large organisation stores its freelancer data in decentralised Excel files, it is also common for these Excel files to be share amongst colleagues by email. This is an extremely risky practice, which exposes the organisation to the risk of fines and loss of reputation as a result of causing a data breach.
Storing freelancer data in a freelancer management system helps improve data security in a number of ways:
- Provides a secure platform, with usernames and passwords for both organisation and freelancer
- Offers access control levels to ensure people can only access data they need and no more
- Facilitates effective collaboration and sharing, without the need for emailing data files