Putting Clients First: SOC 2 Compliance in HR Tech


October 1, 2021

Margaux Morgante

X 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. To explain the impact and importance of SOC 2 compliance, Henry Maphosa, Director of Technology at Kudos®, answered some questions about this important certification.

Putting Clients First: SOC 2 Compliance in HR Tech
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When considering and comparing vendors in the HR/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, Director of Technology at Kudos®, answered some common questions about this important certification.

What is SOC 2 Type 2 Compliance?

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

Why is SOC 2 compliance important to Kudos® Clients?

“We recognize the importance of this report and its usefulness to clients,” says Henry. “It’s recognized by procurement, security, legal, and privacy teams. Essentially, the report contains anything you’d like to, and need to, know about us a vendor.”

In his role as a Director of Technology, Henry often evaluates software systems and tools himself, so he understands the importance and practicality of this certification firsthand. “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,” explains Henry. “It also means more time spent investigating their security practices.”

For Kudos® clients, SOC 2 compliance indicates that they’re partnering with a provider who meets rigorous standards. Henry adds, “because this report is an independent validation, you get more assurance that we do what we say we do from a security, privacy, and compliance perspective.”

Why is SOC 2 compliance especially crucial in the HR Tech Space?

Software and vendors in the HR/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 input into the Kudos® platform, including individual personal profile information and the contents of recognition messages, is all secure and private.

Henry ends by stating that given the sensitivity of personal data involved in all aspects of Human Resources Management, “SOC 2 compliance is critical for Kudos® to demonstrate our commitment to supporting and protecting our clients.”

Data Security & 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.

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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