As company breaches continue to make headlines in the UK, data security has become the top priority for organisations adopting HR technology. Capterra’s 2025 HR Software Trends 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.
- 46% report that security concerns directly triggered their HR software purchases last year.
- Nearly half (45%) UK HR professionals are worried about privacy risks related to AI-powered HR tools (highest of all countries surveyed), reflecting heightened caution as more solutions offer AI capabilities.
“With increased scrutiny and public trust at stake, HR leaders in the UK face mounting pressure to ensure that new software—especially those with AI features—meets the highest standards of data protection,” says David Jani, senior analyst at Capterra. “Security should be embedded into every stage of HR technology adoption, from vendor selection to employee training, to foster trust and compliance.”
To reduce risks, organisations should choose HR software vendors with strong security certifications and transparent data management, and regularly update security protocols. Implementing access controls, encryption, and ongoing staff training is also essential, especially 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 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.
Staff may lack the expertise to safely use advanced HR tools, increasing data security risks. Companies should prioritise training and invest in learning management to ensure responsible use of these technologies.
HR still turns to AI as recruiting gets costly
Despite challenges, AI-enabled HR software offers clear benefits, such as automating tasks and improving candidate matching. Furthermore, 55% of HR software users leveraging AI report higher employee satisfaction or engagement, compared to just 38% among non-users.
As 66% of UK HR leaders expect recruiting costs to rise, HR can lean on AI to help streamline recruitment.
Read the full report and visit Capterra.co.uk to compare the best HR solutions.
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