Traditional HR systems vs. modern secure platforms: What you need to know

This blog breaks down the key differences, helping you understand where traditional systems fall short - and what to look for in a future-ready HR, payroll and workforce management solution that protects your people and your business. 

Data security

Data is the lifeblood of any HR department, containing everything from payroll information to personal employee details. How that data is protected is arguably the most critical function of any system. This is where one of the starkest contrasts between old and new systems emerges.  

Traditional HR and payroll systems often have a relaxed approach to data security. Many were built long before cyber threats became a daily headline. As a result, they frequently suffer from outdated or entirely missing data encryption. This leaves sensitive information vulnerable to breaches and unauthorised access.  

Modern systems, in contrast, are built with a ‘security-first’ mindset. They employ end-to-end encryption, a robust method that protects data at every single point of its journey. From the moment an employee enters their bank details to when payroll is processed, the information is scrambled and unreadable to anyone without authorisation. This advanced approach ensures that even if data is intercepted, it remains useless. 

Access controls

Who can see what? This simple question has complex implications for privacy, compliance, and operational efficiency. The way HR systems manage user permissions has evolved dramatically, moving from a rigid, manual process to an intelligent, automated one.

In many legacy HR platforms, access control is a clunky, manual affair. Permissions are often granted on an ad-hoc basis, leading to a mess of authorisations that is difficult to manage and audit. This approach is prone to human error, an employee might retain access to sensitive data long after changing roles, for example. This not only creates significant security vulnerabilities but also bogs down administrators in tedious, repetitive tasks.

Modern HR systems have replaced this chaos with clarity. They use role-based access controls to automatically assign permissions based on an individual's job function. A line manager sees only their team's data, a finance professional sees only payroll information, and an HR director has a broader view. It’s logical, efficient, and secure.

To strengthen this, modern platforms integrate advanced security features like multi-factor authentication (MFA), which requires users to verify their identity through a second method, and single sign-on (SSO), which streamlines secure access across multiple applications. This powerful combination strengthens security and improves the user experience, making modern HR systems far more reliable and user-friendly. 

Compliance and regulatory challenges

Navigating the maze of compliance requirements has become a high-stakes game for HR leaders. Traditional systems, notorious for their patchwork solutions and manual recordkeeping, often make it easy to overlook important legal obligations. Missed updates or incomplete audit trails can lead to costly fines, damaged reputations, and even litigation.

59% of IT leaders manage multiple systems that must adhere to compliance requirements  

Modern HR systems, by contrast, are designed with compliance at their core. With built-in tools to manage global and local regulations, GDPR, ISO/IEC 27001, SOC 2, and more, these platforms automatically update to reflect the latest legal changes. Digital audit trails, standardized data handling, and robust reporting mean you can respond confidently to any compliance inquiry. Role-based access ensures sensitive information stays in the right hands, while automated documentation helps you pass audits with ease.

The verdict: a modern HR system is non-negotiable

‘Moving away from manual input has had a positive impact, hugely reducing the need for intervention and reducing the risk of errors.’ - Danske Bank  

Choosing between a traditional and a modern HR system is no longer a simple preference. It’s a strategic business decision with far-reaching consequences.

People First offers a clear path forward. The solution provides the fortified security, intelligent automation, and agile infrastructure necessary to protect your data, empower your people, and future-proof your organisation.  

Switching software may seem daunting, but the cost of inaction (in terms of risk, inefficiency, and missed opportunities) is far greater.  

It’s time to stop maintaining the past and start investing in your future.