Which statement is true regarding custom employee relationship security functionality?

Custom employee relationships can be used to constrain security permissions, making this statement true. This functionality allows organizations to define specific relationships among employees that can impact the visibility and access permissions to various functionalities and information within the system. For instance, if an organization has a custom employee relationship defined as "manager" or "direct report," security permissions can be set up to ensure that only individuals in a certain relationship can access specific data or perform certain actions.

This capability is particularly useful for organizations that need to maintain strict control over who can see or edit sensitive information, ensuring compliance with internal policies and necessary regulations. By using custom employee relationships, companies can better tailor their security settings to match their organizational structure and operations, thereby enhancing data security and integrity.