As UK organizations face increasing data breaches, Capterra’s 2025 HR Software Trends Survey highlights data security as the top priority for HR technology adoption. Surveying over 3,200 HR professionals across 11 countries, including 296 in the UK, the study underscores the critical need for secure, AI-driven HR solutions to ensure compliance and trust while addressing skills gaps.
75% of UK HR leaders prioritize security in HR software selection.
46% made HR software purchases due to security concerns in 2024.
45% express privacy concerns over AI-powered HR tools, highest globally.
42% cite lack of AI expertise as a barrier to HR tech adoption.
55% of AI-using HR teams report higher employee satisfaction.
66% expect rising recruiting costs, driving AI adoption for efficiency.
With frequent data breaches in the UK, 75% of HR leaders consider security a critical feature when selecting HR software, and 46% report that security concerns prompted purchases in 2024. “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. Organizations are urged to select vendors with robust security certifications, implement encryption, and maintain strict access controls to mitigate risks.
The survey reveals that 45% of UK HR professionals are concerned about privacy risks in AI-powered HR tools, the highest rate among surveyed countries. This reflects growing caution as AI capabilities expand in HR software. To address these concerns, companies must prioritize transparent data management and regular security protocol updates, especially as UK HR teams manage an average of five tools, increasing potential vulnerabilities if not properly secured.
Despite 60% of UK organizations using AI in HR software, 42% report a lack of AI expertise as a barrier to adoption. Additionally, 54% of HR leaders cite training on HR systems as their primary software-related concern, with 46% identifying upskilling as a key operational challenge for 2025. “Security should be embedded into every stage of HR technology adoption, from vendor selection to employee training, to foster trust and compliance,” says David Jani. Investing in learning management systems is critical to ensure staff can safely use advanced tools, reducing security risks.
With 66% of UK HR leaders anticipating rising recruiting costs, AI-driven HR tools offer significant benefits, including task automation and improved candidate matching. Notably, 55% of HR teams using AI report higher employee satisfaction or engagement, compared to 38% of non-users. These advantages help streamline recruitment and enhance employee experiences, making AI a strategic investment despite implementation challenges.
Capterra’s 2025 HR Software Trends Survey highlights the dual focus on data security and AI skills training for UK HR professionals. By adopting secure, AI-enabled HR solutions and prioritizing employee training, organizations can navigate privacy concerns, reduce risks, and enhance operational efficiency in an evolving talent landscape.
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