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EU-GDPR: Challenges for Recruiters and HR domain

As mentioned in our previous blog posts, from May, the Federal Data Protection Act is no longer valid, because then ends the transitional period of the new, General Data Protection Regulation. Together with all other domains, there are also basic obligations in the area of human resources: although a recruiter must already be careful to ensure that data are particularly protected by applicants, the protection is significantly expanded.

Especially with data collection, processing and security, a recruiter should be well informed, otherwise, it’ll endanger high penalties. Here below, we’ve listed the biggest challenges possible for recruiters vis-à-vis EU GDPR:

 

Profiling – Changes in the recruitment research

 

In case of a shortage of skilled workers, the active search for personnel becomes more and more important. To do this, a recruiter must actively collect data. Consequently, this data collection will not change. However, as soon as this information is reused, there is a lot to consider. Affected individuals must be informed before data processing that their data will be used for profiling. Recruiters have to provide information at this point, what happens to the data afterward.

If a candidate is suitable for the job then the HR must inform other candidates immediately about the planned duration of their data storage and their right to delete the data. This becomes particularly problematic for companies that specialize in data collection. The reason for this is that the new regulation sets a short deadline of 72 hours for the publication and deletion of data. For long-term storage of data, there is a case-dependent period of two to six months. A declaration of consent provides a remedy at this point, this way, the recruiter gets the ability to save data longer. The purpose of the stored data, transparent information, communication and modalities of data subject should always be indicated. (Chapter 3 of the EU GDPR “Rights of the data subject”, Art. 12-23).

 

Data Processing – What must be considered for public sources?

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EU GDPR does not have any exemption for data processing from publicly available sources. Means recruiters are required to provide the data collection. However, this communication does not have to be direct, because a reference in a publicly accessible privacy policy of the companies involved is sufficient.

However, a nonspecific survey and its analysis, keyword: Big Data, is strictly regulated by the EU GDPR. This is because the related data are not kept. Rather, in the case of large data collections, the collected information is checked for value only afterward. These data must be anonymized and may only be used for statistical evaluation (Chapter 9 of the EU-GDPR “Provisions relating to specific processing situations”, in particular Art. 89).

 

Privacy – How does sensitive information remain confidential?

 

It is important for recruiters and businesses to review and align privacy information. Because the burden of proof in the case of non-compliance with data protection lies not with the person who identifies a security deficiency, but with the respective company. An offense in data protection is not only the missing deletion or informing a data collection: It is already sufficient if the purpose of the data processing is not specified or there is no regular check on the security of the personal data.

The financial consequences increase with the new regulation and amount to up to 4% of the total worldwide achieved annual turnover of the previous business year. It should, therefore, be ensured a data management system that guarantees a secure, confidential storage of personal data (Chapter 8 of the EU-GDPR “Remedies, Liability and Penalties”, in particular, Art 83).

 

Conclusion: Recruiters and HR companies must act compelling

 

No secret: recruiter will also change a lot from May 2018 at the latest because they handle sensitive information about potential job candidates on a daily basis. Recruiters must communicate much more openly with their data collections and their use. Big data handling will be much more severe and IT security will play a crucial role in 2018 and later on. For this reason, recruiter, but also companies should be informed in detail about the EU GDPR. It is not only a challenge but also a great opportunity for recruiters and HR companies to set themselves apart from the competition on an international level with the new standard.

Artificial Intelligence and the Corporate World Transformation

Worldwide Analytics Cognitive AI and Big Data Predictions

Worldwide, companies collect and own huge amounts of data in the form of documents. Due to a lack of digitization, these can often not be served for business processes – or only with a huge manual effort behind. These documents usually contain important and business-critical information, so the loss or even the time delay in gathering information can have a major impact on the success of a business.

 

However, with the rapid advances in automated text capture cognitive technology, organizations are now able to easily digitize, classify, and automatically read their unstructured business documents for transfer to relevant business processes. With such fully automated solutions, companies can not only save time and money, but also greatly improve the data quality in their systems and massively accelerate response times and important decisions.

 

Especially computer vision has evolved enormously in recent years. The ability to quickly recognize and process text on each device has greatly improved since the time when documents had to be scanned and analysed with OCR technology. This rapid development is also reflected in the numbers in the industry: IDC predicts that the world market for content analytics, discovery and cognitive systems software will reach $ 9.2 billion by 2019 – more than twice as much as in 2014. To make the most of these market changes, IT solution providers need to better serve the rapidly growing needs of machine learning and artificial intelligence (AI). Only then can they meet the customer requirements of tomorrow and remain relevant.

 

Employees in the center of each business

 

There is a groundless fear that artificial intelligence automation solutions could replace skilled employees in companies. Despite or because of solutions based on artificial intelligence, well-trained employees are needed who understand the core values of the company as well as the technological processes. People have qualities that AI solutions depend on, such as empathy, creativity, judgment, and critical thinking. That’s why qualified employees are essential for the success of a company in the future as well.

 

Companies as drivers of digital transformation

 

Businesses first and foremost require systems that support and relieve their professionals of their day-to-day routine work, enabling them to work more productively and creatively. Above all else, modern systems must be capable – on the basis of past experience – of learning behaviour independently and of making suggestions for the future course of action. To do this, companies need professionals who are able to lead these systems to enable automated workflows in the first place.

 
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Robotic Process Automation (RPA) and machine learning drive the automation of routine repetitive tasks. RPA software is a powerful solution for more efficient manual, time-consuming and rule-based office activities. They reduce throughput times and at a lower cost than other automation solutions. In addition, artificial intelligence will make more types of these tasks automatable. The combination of RPA and machine learning will undoubtedly create a large market segment with high demand; namely for the identification of processes and their intelligent implementation.

 

The next five years

 

It is expected that once companies have automated various tasks through the use of artificial intelligence, they will increasingly want to monitor and understand the impact of these processes on their organization. As a result, they will undergo a fundamental change over the next three to five years. This is mainly due to the convergence of RPA and AI in the following areas:

The use and advancement of RPA will entail a wave of machine learning advancements, such as: for task automation or document processing. Even processes that affect basic decision-making benefit greatly from RPA. Use cases traditionally associated with capturing data from documents, on the other hand, will converge with ever new document-based RPA use cases. AI technology is now being used more widely and offers advantages for the identification and automation of processes as well as their analysis.

 

AI will also lead to the automation of basic tasks performed today by qualified staff. It will have a major impact on the composition and size of the workforce of companies, especially in the fintech, health, transport and logistics sectors. Above all, companies from all industries benefit from optimized processes for customer relations. However, authorities can also offer citizens quicker reaction times and improved service through intelligent automation.

And finally, robotics is much more than just R2-D2 or C-3PO. Software robotics will think much faster than most people, penetrate the work environment in companies – in data and document capture, RPA, analytics and for monitoring and reporting – intelligent and situational.

 

Ready for change

 

Businesses need to prepare for the age of AI today to stay successful. This requires a significant shift in the required skills in the company. Above all, it is up to the employees to be open to the new technologies and to see them as an opportunity to gain competitive advantages.

In general, intelligent systems will do more work in the future. For example, in the case of lending, the role of the person in charge will continue to decline because the system will be able to independently make intelligent decisions based on the borrower’s previous financing behaviour. Ultimately, the clerk only has to worry about rule-based exceptions. This will relieve the loan officers of many routine tasks, allowing them to spend more time on customer care. Overall, this significantly increases bank productivity.

A further shift in competence results from the fact that the process requires less human control and expertise. As software becomes increasingly knowledgeable, it becomes less dependent on employees. This means that their duties are smaller, but at the same time more responsible.

CISCO: Cloud networking trends

Essential characteristics of cloud

The annual Cisco Global Cloud Index (2016-2021) shows that data-center traffic is growing rapidly due to increasingly-used cloud applications. According to the study, global cloud traffic will reach 19.5 zettabytes (ZB) in 2021. This is an increase of 6.0 ZB compared to 2016, which is 3.3 times higher, with an annual growth rate of 27%. In three years, cloud traffic will account for 95 % of total traffic, compared to 88 % in 2016.

According to the study, both B2C and B2B applications contribute to the growth of cloud services. For consumers, video streams, social networking, and web search are among the most popular cloud-based apps. For employees, it’s ERP, collaboration and analysis solutions.

 

Security and IoT as a growth driver

Increasing IoT applications, such as smart cars, smart cities, connected healthcare and digital care, require a highly scalable server and storage solutions to meet new and expanded data center needs. In 2021, there will be 13.7 billion IoT connections, compared to 5.8 billion in 2016, the study said.

In the past, security concerns were a major barrier to cloud usage. Improvements in data center control and data control reduce the risk to businesses and better protect customer information. New security features coupled with tangible benefits from cloud computing, such as scalability and efficiency, play an important role in cloud growth.

 

Hyperscale Datacenters Growth

The increasing demand for data center and cloud capacity has led to the development of hyper-scaled public clouds based on Hyper-scale data centers. The study predicts that there will be 628hyper-scale data centers worldwide in 2021, compared to 338 in 2016, nearly the double. In three years Hyperscale data centers will have:

  • 53 % of all data center servers (2016: 27 %)
  • 69 % of the computing power of data centers (2016: 41 %)
  • 65 % of data center data stored (2016: 51 %)
  • 55 % of all datacenter traffic (2016: 39 %)

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The growth of data center applications is exploding in this new multi-cloud world. The predicted increase requires further innovation, especially in the public, private and hybrid cloud sectors.

 

Virtualization of data centers and cloud computing growth

By 2021, 94 % of the workloads and server will be processed in cloud data centers, the remaining 6 % in traditional data centers. All data center workloads and server instances will more than double (2.3x) between 2016 and 2021, while cloud-based workloads and server instances will almost triple (2.7x) over the same period).

The density of workloads and server instances in cloud data centers was 8.8 in 2016, rising to 13.2 by 2021. In traditional data centers, density increases from 2.4 to 3.8 over the same period.

 

Big Data and IoT fuel data explosion

Worldwide, the amount of data stored in data centers will increase almost fivefold, from 286 Exabytes in 2016 to 1.3 ZB 2021 (4.6x, with annual growth of 36%). Big data will grow almost 8x, from 25 to 403 EB. In 2021, it will contain 30 % of all data stored in data centers compared to 18 % in 2016.

The amount of stored data in devices in 2021 will be 4.5 times higher at 5.9 ZB than data stored in data centers. Mainly due to the IoT, the total amount of generated data (which will not necessarily be saved) will reach 847 eg by 2021, in 2016 it was 218 eg. This generates more than 100 times more data than saved.

 

Applications contribute to data growth

By 2021, Big Data will account for 20% (2.5 ZB annually, 209 EB monthly) of data center traffic, compared to 12 % (593 EB annually, 49 EB monthly) in 2016, video streaming will account for 10 % of data center traffic, compared to 9 % in 2016. Video will account for 85 % of data center traffic to users, compared to 78 % in 2016, internet search will account for 20 % of data center traffic, compared to 28 % in 2016, social networks will account for 22 % of data center traffic, compared to 20 % in 2016.

 

SaaS is the most popular cloud service model by 2021

By 2021, 75 % (402 millions) of all cloud workloads and server instances will be SaaS-based, compared to 71 % (141 million) in 2016 (which represents 23 % of annual growth).

16 % (85 millions) of all cloud workloads and server instances will be IaaS-based, compared to 21 % (42 million) in 2016 (which represents 15 % annual growth).

9 % (46 millions) of all cloud workloads and server instances will be PaaS-based, compared to 8 % (16 million) in 2016 (which represents 23% annual growth rate).

 

As part of the study, cloud computing includes platforms that provide continuous, on-demand network access to configurable resources (e.g., networks, servers, storage, applications, and services). These can be quickly deployed and shared with minimal management effort or interactions with service providers. Deployment models include Private, Public, and Hybrid Clouds. Cloud data centers can be operated by both service providers and private companies.

 

The key differences between cloud data centers and traditional data centers are virtualization, standardization, automation, and security. Cloud data centers offer higher performance, higher capacity, and easier management compared to traditional data centers. Virtualization serves as promoter for the consolidation of hardware and software, greater automation and an integrated approach to security.

When is a Cloud Service Provider GDPR-suitable?

Cloud providers are much more committed to the Data Protection Regulation (GDPR) than before. As of 25 May 2018, the new regulation on the processing of personal data will apply – but what exactly does that mean for us as a cloud user? How do you know if a service or provider meets GDPR requirements? And when does a cloud service actually qualify as a GDPR -compliant?

 

The values governing the processing of personal data are initially governed by Article 5 (1) of the GDPR; Further regulations can be found, inter alia. in Articles 25 and 32. In what follows, explanations on main demands are, especially in relation to cloud services, can be found.

 

Data must be processed lawfully and fairly – GDPR Art. 5

 

The processing of personal data in the cloud is legal only if the data subject has consented or if another legal basis exists. The data processing must take place in a manner that is comprehensible to the person concerned, i.e. the cloud provider must be able to provide clear guarantees as the transparency is now included as a fundamental aspect of these principles.

 

Confidentiality, integrity and availability – GDPR Art. 5.1 f & Art. 32

 

The data must be processed in a manner that ensures adequate security of the data, including protection against unlawful processing, loss or damage. Furthermore, the processing must not be expected to breach the dignity of the persons concerned or to restrict their freedoms.

 

Security and state of the art processing- GDPR Art. 32

 

During the processing, a sufficiently high security must be guaranteed. The legislator demands that the level of security be constantly improved and always based on the so-called “state of the art” methods.

 

Privacy by Design and Privacy by Default – GDPR Art. 25

 
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Taking into account the state of art, Data protection must be guaranteed by privacy-friendly technology design (Privacy by Design) and privacy-friendly default settings (Privacy by Default).

 

Accountability – GDPR Art. 5.2, Art.28, Art 30 & Art.35  

 

Basically, the controller is responsible for compliance with all mentioned requirements and must be able to prove this in advance (accountability). He must include the processing in the cloud in his directory of processing activities and, if necessary, conduct a risk analysis, a so-called privacy impact assessment. The controller now shares this responsibility with the cloud provider, who in turn also has to provide sufficient guarantees that the requirements of the GDPR are complied with.

 

Processing – GDPR Art. 28

 

In cloud computing, the user orders the provider to process the data. In order for the cloud user to be able to live up to his responsibility to the data subjects in this case too, he ensures his agreement with the cloud provider with an order processing agreement that also fulfils the requirements of the GDPR. Part of such an agreement must be that the cloud provider provides all information necessary to demonstrate compliance with the requirements.

 

Proof by certificates

 

Of course, for you as a cloud user, it is difficult and almost unacceptable to check compliance with these requirements yourself. It is helpful that cloud providers can use an “approved certification process in accordance with Article 42 to demonstrate compliance with the above requirements. Although no “approved” certificate is yet available, this does not mean that certificates specifically aimed at the requirements of the GDPR cannot already be used as proof of GDPR conformity.

 

For example, the Trusted Cloud Data Protection Profile (TCDP) was developed with respect to the GDPR. Certifications according to the TCDP should be converted into certificates according to the GDPR standard after the extension of the procedure and standard test. With the research project “AUDITOR” there is also a follow-up project to the TCDP, whose goal is the conception and implementation of an applicable EU-wide data protection certification of cloud services. The first catalog with certification criteria should be completed by the end of April 2018.

 

So, if you choose a cloud service that is TCDP certified, you’re already on the safe side; From the deadline of May 25, you should additionally ensure that the conversion into a certificate according to the GDPR standard actually takes place or that the service proves compliance with the GDPR with another suitable certificate.

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