What is the Impact of GDPR and Hiring in Europe?

April 04, 2018

One of the biggest challenges for companies looking to expand internationally in Europe is the enforcement of the EEA’s General Data Protection Regulation (GDPR).

GDPR will come into full effect at the end of May 2018 and will permanently change how businesses handle personal data and do business in the EU. It presents many hurdles in regards to how companies will process and store personal data.

What is GDPR?

GDPR is primarily concerned with how companies manage and store personal data that originates in the EU. All companies that manage personal data of EEA residents (which most EU businesses do) are required to put specific safeguards in place to protect that data.

This includes basic information like names, addresses, computer IP addresses, and location details. And GDPR makes no distinction between whether that data is private, public, or work-related.

Here is a basic overview of some of the GDPR provisions:

  • Individuals have the right to access their personal data and find out how it is being used.
  • Individuals have the right to edit, transfer, or delete their data entirely.
  • Before companies gather data about an individual, customers must give their consent.  
  • In the event of a data breach, certain individuals have the right to be notified within 72 hours.

GDPR will affect U.S. companies in a number of ways. Of course, this will have an impact on how companies interact with overseas customers and vendors. But it will also affect how employers protect the privacy of their foreign employees.

How Will GDPR Impact Global Businesses?

There are currently 28 member states in the European Union. The EU allows many of these member states to change some of the core concepts of GDPR to fit their local area. This means your business will not only be held to the EU’s standards but to the individual GDPR regulations in each member state you do business in.

Your company will need to remain vigilant in order to comply with GDPR regulations. Failure to comply with these regulations could result in huge fines and penalties.

Even a small technical error could cost companies millions of dollars. And failure to comply with the foundational principles of GDPR could result in fines of up to €20 million or four percent.

According to a recent PwC survey, the cost of preparing for GDPR is steep. 68 percent of U.S.-based companies anticipate spending up to $10 million to comply with GDPR regulations. Nine percent expect to spend even more.

How Clearfront HR Can Help

In order to prepare for GDPR, companies need to have procedures in place for how they will handle and store personal data. Here are a few questions companies should begin to consider:

  • How will you allow individuals to give consent?
  • How will you ensure that individuals can delete, change, or transfer their data?
  • How will you keep this data secure?
  • What will you do in the event of a data breach?

Meeting the requirements of GDPR puts many companies in a difficult position. Fortunately, you don’t have to navigate these changes on your own. By partnering with Clearfront HR, you ensure that your company is GDPR compliant without a lot of extra work on your end.  

Let Clearfront HR address the legal, technical, and procedural implications of GDPR. Get in touch today to learn more about our services.