As company breaches continue to make the headlines in the UK, data security has become the top priority for organisations adopting HR technology. A survey* of over 3,200 HR professionals in 11 countries—with 296 in the UK— found that 75% of UK HR leaders consider security a critical feature when researching and implementing HR software.
Furthermore, 46% report that security concerns directly triggered their HR software purchases last year and 45% of UK HR professionals are worried about privacy risks related to AI-powered HR tools. This figure is the highest out of all the countries surveyed, reflecting heightened caution as more solutions offer AI capabilities.
To reduce risks and help to foster trust and compliance, organisations are advised to select HR software vendors with strong security certifications and transparent data management practices. Regularly updating and auditing security protocols is essential, particularly when integrating AI features that process personal data. Companies should also implement strict access controls and encryption, develop clear internal privacy policies, and provide ongoing staff training on data handling best practices.
These steps are especially important as UK HR teams often manage an average of five HR tools per organisation, which can increase exposure if not properly secured.
Urgent training needed as AI and HR software skills gaps widen
The survey also highlights a significant skills gap: While over 60% of UK organisations already use AI features in their HR software, 42% percent say a lack of AI expertise within their teams is a barrier to adopting it. In fact, training new users on HR systems in general is the main software-related concern for 54% of HR leaders, while 46% identify upskilling employees as their primary operational challenge for the coming year.
This poses additional data security risks as members of staff may lack the expertise needed to safely use advanced HR tools. Therefore, companies should prioritise comprehensive training and investment in learning management to ensure these technologies are used responsibly.
HR still turns to AI as recruiting gets costly
Despite these obstacles, the benefits of AI-enabled HR software are clear. For example, AI-powered recruiting solutions can automate repetitive tasks and improve candidate matching. As 66% of UK HR leaders expect recruiting costs to rise, HR can lean on AI to help streamline recruitment.
Furthermore, 55% of HR software users leveraging AI report higher employee satisfaction or engagement, compared to just 38% among non-users, and retention rates are also higher for AI adopters.
As the UK’s HR landscape evolves, organisations that prioritise security and training will be best positioned to unlock the full benefits of modern HR tech while protecting employee data.
