The consequences of trying to save up money by using outdated software and not training staff on best practices can bring any HR startup to its knees with just one phishing email.
When a single phishing email can crash operations, the question is no longer if human resources startups in Africa can afford cybersecurity, but whether they can afford to ignore it.
Sometimes people ask what it is like to overlook cybersecurity. Usually one could reply with a simple “Prevention is better than cure.” However, to make it more realistic, a befitting response would be imagining someone breaking in through the front door and carting away valuables, including those bought and lent.
“Data loss and data breaches are higher for HR startups. As of 2024, the average cost of a data breach was estimated at $4.45 million,” Delight Hamilton, Information Security Leader at PiggyVest, told Techpoint Africa.
“When you are handling employee records, payslips, and personal details, one breach can end your business.”
While there is a tendency to save up on expenses, Mishael Harry, Founder of Nigeria’n HR platform SalarioPay, says HR startups should “invest in robust cybersecurity systems and train employees on best practices.”
According to him, fraud, cybersecurity threats, and security concerns for employees and assets can be addressed with an adequate budget for cybersecurity.
“But we don’t have the budget. Cybersecurity is expensive. Well, so is dealing with the aftermath of a breach,” an HR expert added.
Despite warnings, many HR-focused startups across Africa are still unprepared. In April 2025, a Kenya-based payroll platform suffered a ransomware attack that exposed sensitive employee records from over 50 companies.
The breach reportedly took weeks to resolve and cost the company financially and reputationally.
Cybersecurity often gets overlooked in the rush to launch and scale. But HR tech platforms do not just run on code; their relevance is built on trust.
Where the risks lie
HR startups handle some of the most sensitive data in any business ecosystem: banking details, identification numbers, employment contracts, and medical histories. Any breach affects their clients, erodes user trust, violates data protection laws, and opens the door to litigation.
As a startup handling some of the most critical information of people, including sensitive data, if a hacker happens to gain access, it’s not only considered a breach but also a full-blown disaster. The scariest part is not realising the damage until it’s already done.
In Africa, where the stakes are a bit higher, many startups are moving online due to the steady rise in digital transformation without an appropriate understanding of the risks attached. As a result, their lack of awareness and resources can make them prime targets for cybercriminals.
According to tech experts, running a human resources platform without considering robust cybersecurity measures “is no different from throwing a large party with all the drinks and food where anyone can walk in and take what they want without any trace.”
For HR startups in Africa, beyond helping organisations handle onboarding, payroll, time tracking, and other HR functions seamlessly, there’s a whole lot that goes into protecting the information of job candidates and other details of employees. Cutting corners in anything is dangerous and could lead to disaster if not quickly addressed. It’s a different story cutting corners when handling payslips and data for insights.
The cost of cutting corners
Outdated software, weak passwords, and untrained employees are some of the most common ways HR startups expose themselves to risk. These vulnerabilities are often brushed aside in favour of rapid growth or investor demands. “Cybersecurity is expensive, one HR consultant admits, “but so is dealing with the aftermath of a breach.”
For instance, in April 2023, Website Planet discovered that Plateau State Contributory Healthcare Management Agency (PLASCHEMA) had unsecured AWS S3 data buckets containing approximately 45GB of personal information about 37,000 individuals, including identification documents and photos.
In some cases, cyber attacks remain undetected until it’s too late. The real danger? Not knowing what was taken or how far the damage has spread until people start asking questions.
Building a culture of security
Instead of thinking of cybersecurity as an afterthought, Hamilton said HR startups need to build with security in mind. He outlined the A-Z approach that startups can adopt, including:
- Access control to limit data exposure
- Backup and recovery plans for data loss
- Endpoint security for mobile and remote workers
- Human training to prevent social engineering
- Zero trust architecture to ensure no implicit access is granted
This proactive framework not only reduces risks but also “boosts compliance with local and international data laws.”
Avoiding compromise on security isn’t just a technical requirement for HR startups; it’s a business imperative to staying afloat. In Africa’s competitive startup ecosystem, where trust is the currency of survival, compromising on security can be the difference between succeeding and failing.
