Putting Clients First: SOC 2 Compliance in HR Tech


October 1, 2021

Margaux Morgante

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5 min

SOC 2 compliant organizations have gone through rigorous external audits to ensure they have the infrastructure, tools, and processes to keep your data safe.

Kudos is committed to providing clients with the highest level of security assurance, and has officially completed its SOC 2 Type 1 Compliance and Certification

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When comparing vendors in the HR and Worktech space, one critical factor should be the security and privacy of employee data within the system.

So, what should you look for to ensure your data is safe and secure?

One way is to seek out a vendor with SOC 2 accreditation or what's more commonly referred to as a "SOC 2 compliant company". Kudos understands the importance of your data and information, and is proud to have this accreditation.

To explain the impact and importance of SOC 2 compliance, Henry Maphosa, an information security expert, answered some common questions about this important certification.

What is SOC 2 Type 2 Compliance?

SOC 2, developed by the American Institute of CPAs (AICPA), is a voluntary compliance standard which specifies how service organizations should manage customer data. The standard is based on the following Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy.

Being SOC 2 compliant assures customers and clients that a vendor or partner has the infrastructure, tools, and processes to protect their information from unauthorized access within and outside the firm.

Why is SOC 2 Compliance Important to Clients?

“If a company does not issue a SOC 2 report, it could raise questions regarding the controls they have in place or their commitment to security and compliance as an organization,” said Maphosa. “It also means more time spent investigating their security practices.”

For Kudos clients, SOC 2 compliance indicates they’re partnering with a provider who meets rigorous standards. Since the report is an independent validation, the client feels more assured that the company follows through on security, privacy, and compliance promises.

Why is SOC 2 Compliance Crucial in the HR Tech Space?

Software and vendors in the HR and Worktech space often store personally identifiable information (PII) like names, phone numbers, or even SSN numbers. Some platforms also hold confidential business information like HR budgets or company goals which are especially vulnerable and critical to protect.

For Kudos, SOC 2 compliance assures HR leaders that any information stored in the Kudos platform, including individual personal profile information and the contents of recognition messages, is all secure and private.

Given the sensitivity of personal data involved in all aspects of Human Resources Management, Kudos views SOC 2 compliance as a necessary demonstration of client support.

Data Security and Kudos

Kudos is committed to providing clients with the highest level of security assurance, and has officially completed its SOC 2 Type 1 Compliance and Certification. Kudos completed the independent platform and systems compliance audit with zero exceptions, meaning all controls were designed effectively.

If you’re currently evaluating employee recognition systems and would like to learn more about the importance of security and privacy, please do not hesitate to reach out.

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About Kudos

Kudos is an employee engagement, culture, and analytics platform, that harnesses the power of peer-to-peer recognition, values reinforcement, and open communication to help organizations boost employee engagement, reduce turnover, improve culture, and drive productivity and performance. Kudos uses unique proprietary methodologies to deliver essential people analytics on culture, performance, equity, and inclusion, providing organizations with deep insights and a clear understanding of their workforce.

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