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The Long Arm of the Law: GDPR's Impact on HR Data

Although the European Union’s (EU) General Data Protection Regulation (GDPR) went into effect on May 25, 2018, many companies have only begun taking steps to comply, and most still have a long way to go. Human capital data, much of which qualifies as “sensitive,” must be protected more vigorously than other kinds of data. At the same time, both the volume and business value of HC data have dramatically increased. It’s not always clear what the impact of the regulation will be on data processing, especially on HC analytics. What’s HR’s role in protecting the personal data of employees, applicants, and contingent workers under GDPR?

EXECUTIVE SUMMARY

The European Union’s General Data Protection Regulation (GDPR), which went into effect on May 25, 2018, guarantees the right of individuals to be in charge of their own data and how it is used. It holds those who collect and use personal data—including employers—accountable for abiding by specific principles and practices. Companies must document their ongoing efforts to comply with GDPR and can be fined up to €20 million ($US 23.9 million) or 4 percent of their annual revenues, whichever is greater, for failing to meet the new standards. GDPR applies not only to EU companies but to any company outside the EU that stores or processes any personal data about individuals in the EU.

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AUTHORS

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Mary B. Young, D.B.A.

Principal Researcher, Human Capital
The Conference Board

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Marion Devine

Senior Human Capital Researcher, Europe
The Conference Board

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Amy Ye

Researcher, Human Capital
The Conference Board

GDPR AND HR CONTENT

PUBLICATIONS

Is GDPR the Death Knell for Human Capital Analytics?

September 14, 2018 | RESEARCH REPORT

The Long Arm of the Law: GDPR's Impact on HR Data

June 28, 2018 | RESEARCH REPORT

Managing Human Capital Risk

July 11, 2011 | RESEARCH REPORT

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