6. October 2026
HR software security: A guide for UK HR teams
Nicola Scoon
HR software security might feel like a consideration for your IT team, but it’s just as relevant for HR teams. Understanding the importance of data protection and security and the role software plays in that can help you make the right decisions about buying or switching HR systems, enabling integrations, setting policies, and building processes.
In this guide, we’ll explore why the security of your HR system matters, offer an explainer on key security terms, and share a guide on how to evaluate software vendors — including the red flags to watch out for.
Why is HR software security important?
HR software needs to be secure because HR teams handle sensitive data. Employees’ personal details, financial information, health records, and details about protected characteristics are all commonly stored in HR software — and these records should be protected against misuse, data breaches, and malicious attacks.
Businesses in the UK need to meet the UK GDPR’s requirements when it comes to data processing, storage, access, and retention. Information should only be held if necessary, and it should be stored and transferred securely using methods like data encryption, multi-factor authentication (MFA), and role-based access controls.
Taking HR data security seriously also improves employee trust, loyalty, and morale. Employees feel confident that their personal records are only accessed by the people that need to see them, and that everything is securely stored on servers and systems with adequate safeguards.
Common security-related terms and what they mean
Security term | What it means |
UK GDPR (UK General Data Protection Regulation) | The UK GDPR provides clear legal guidance on how organisations should collect, use, and store personal data — including employee records. |
EU GDPR (European Union General Data Protection Regulation) | The EU GDPR is the data privacy law that covers the EU, with similar rules to the UK GDPR. |
An international standard for managing information security. Organisations that are ISO 27001 certified have successfully implemented the framework and passed the independent audit. | |
An international code of practice for information security controls in cloud services. | |
SOC 2 (System and Organisation Controls 2) | A voluntary compliance standard for cybersecurity and compliance, developed by the American Institute of Certified Public Accountants (AICPA). |
A cyber security certification backed by the UK government. Organisations that complete the full technical audit and independent verification step can achieve Cyber Essentials Plus certification. | |
SSO (Single sign-on) | An authentication method that allows you to use one set of credentials (details) to access multiple websites, apps, or platforms. Examples include Okta and Microsoft Entra ID. |
MFA (Multi-factor authentication) | A security process that requires two or more types of verification to access a service, app, or platform. Verification methods can include passwords, PIN, authenticator apps, and biometric data. |
DPA (Data processing agreement) | A legally binding contract between the data controller and a data processor. Commonly used when data is outsourced to vendors outside the UK or EU. |
Subprocessors | A third-party vendor or provider that the data processor uses to store or transmit personal data on behalf of the original data controller. Examples include cloud hosting providers like AWS, or AI tools like Amazon Bedrock. |
Data residency | The physical location where data is stored and processed, often named as a specific country or area (e.g. UK or EU). |
SLA (Service level agreement) | A formal, legally binding contract that sets out expectations for the service provided, performance metrics, responsibilities, and response times. |
Data encryption | The conversion of readable information into an unreadable format. Sensitive data should be encrypted both ‘at rest’ (in physical storage and backups) and ‘in transit’ (as it moves across the network or servers). |
Access controls | A security process that restricts access to resources based on their identity, commonly grouped by role or use case. |
Penetration testing | Simulated cyberattacks designed to evaluate security measures and identify weaknesses so they can be patched. |
Audit logs | An automatic, time-stamped record of actions taken within a system or record. Designed to support compliance with GDPR and provide useful information in the event of an error or data breach. |
How the right HR software can support your overall security efforts
HR software cannot guarantee compliance, but the right system can support your wider data protection and security plans through features, settings, notifications, and workflows.
Here’s how HR software fits into your approach to data security:
Clear processes that support employee rights: Easily introduce workflows and forms to support data subject requests (DSRs), the right to erasure, and data retention periods.
Data stored in a single employee record: Centralise HR data in one system and within single records for individuals, to make it easier to comply with employee requests.
Secure and compliant data storage: Keep HR information stored within the UK or EU on servers with sufficient security controls and regular backups.
Role-based access controls: Lock down the system from unauthorised access and give individuals permission based on their role, so information is only visible to people that need it.
Complete audit logs: Create a reliable audit trail of who accessed records, when, and why, ready for a DSR or external audit.
Notifications for certificate expiry dates: Get automatic reminders about upcoming expiration dates on essential certifications, instead of having to rely on memory.
Security certifications and accreditations: Look for vendors with recognised accreditations, like ISO 27001, SOC 2, or Cyber Essentials.
Protecting your data
Data protection and information security are at the core of Personio’s products and services.
Visit Personio's Trust CentreHow to evaluate HR software vendors on security
To evaluate software vendors on data protection and security measures, consider their infrastructure, data encryption and security, access controls, certifications, and incident response process.
Assess vendors with a clear checklist, ask the right questions during and after your demo, and be aware of red flags that signal you need to take a closer look at their approach to security.
HR software security checklist
Use this checklist to evaluate each vendor’s ability to meet your requirements, followed by a score that captures your impression of their security measures: zero means they don’t meet your needs, and five means you feel fully confident in their ability to deliver.
Requirement | Does the vendor meet it? (Yes / No / Partly) | Score (0-5) |
Certifications (like ISO 27001 and SOC 2) | ||
Data residency in the UK or EU | ||
Data encryption (in transit and at rest) | ||
Regular backups | ||
Single sign-on (SSO) | ||
Multi-factor authentication (MFA) | ||
Customisable or role-based access controls | ||
Data processing agreement (DPA) | ||
Integration security monitoring | ||
Continuous security monitoring | ||
Regular penetration testing | ||
Compliant data retention and deletion periods | ||
Data exports | ||
Data subject request forms or workflows | ||
Staff and contractor offboarding and removal of access | ||
Incident response process and team | ||
AI in HR software governance |
Security questions to ask HR software vendors
Many software vendors have a trust centre that details their approach to data protection and infrastructure security, but it won’t answer every question you have. Here’s what to keep in mind (and ask) during or after your demo so you feel confident about the vendor’s security measures:
Is the system UK GDPR and EU GDPR compliant?
Where is data stored?
What security certifications does your organisation hold?
Can you provide a list of all subprocessors?
Can you share more information about how access controls are configured?
Where are audit logs stored and how long for?
How often are backups created and where are they stored?
Can you share your incident response procedure?
Do you conduct regular penetration testing and external security reviews?
Is our data used to train AI models?
Reg flags to be aware of
Most HR software vendors are aware of relevant data protection and security requirements, but some systems aren’t designed for the UK or may not have the experience, infrastructure, or certifications you’re looking for.
Watch out for these red flags:
No recognised security certifications
Data residency outside the UK or EU
No ongoing security monitoring
No role-based access controls
No multi-factor authentication (MFA) or single sign-on (SSO)
Unable to explain the process for dealing with incidents or data breaches
No information provided about subprocessors
Unable to confirm details about data backups or audit logs
No information about data privacy and security for AI features
Unwilling to answer detailed questions about data protection or security
A red flag doesn’t mean an automatic no, but it is a signal to ask more questions and follow up with your vendor to understand what they offer (and what they don’t).
Personio’s approach to security
Data protection and security is at the centre of Personio’s products and services. The system is built to be secure by design, and follows industry best practices for software security.
Personio’s security measures include:
Secure by design
Data hosted within the EU
Compliance with the essential requirements of the GDPR
ISO/IEC 27001 and ISO/IEC 27017 certified
Data encryption in transit and at rest
Information on all third-party mandatory and optional subprocessors
Internal and external security scans and tests
Detailed information about data privacy and security for AI features
Clear information security policy, data protection policy, and acceptable use policy
Documented disaster recovery plan
Easy-to-use incident and vulnerability report forms
Comprehensive trust centre with built-in security review feature
Learn more about Personio's security guidelines, reliability, privacy, and compliance.
Visit Personio's Trust CentreFrequently asked questions
What security standards are important for a UK business?
UK organisations should look for vendors that hold recognised certifications, like ISO 27001, SOC 2, or Cyber Essentials Plus. Some software vendors may hold multiple, while others will focus on one standard — like ISO 27001 and ISO 27017.
Where does UK HR data need to be stored?
Ideally UK HR data should be stored within the UK or European Economic Area (EEA). While it can be stored on servers outside these areas, it would need to satisfy strict legal safeguards and be part of a data processing agreement. Many UK organisations choose a vendor that stores data in the UK or Europe for more straightforward compliance.
Where is HR data stored with Personio?
Personio’s data is stored on servers located within the EU, including Frankfurt in Germany. Data stored in Personio stays within the EU.
Is Personio ISO 27001 certified?
Yes, Personio is both ISO 27001 and ISO 27017 certified. Evidence of these certifications and other industry standards can be found in Personio’s trust centre.
Does Personio have SOC 2?
Personio does not currently directly hold an SOC 2 certification, and instead is focused on European and international data standards. Personio is ISO 27001 and ISO 27017 certified and complies with the GDPR.
Disclaimer
Disclaimer: We would like to inform you that the contents of our website (including any legal contributions) are for non-binding informational purposes only and does not in any way constitute legal advice. The content of this information cannot and is not intended to replace individual and binding legal advice from e.g. a lawyer that addresses your specific situation. In this respect, all information provided is without guarantee of correctness, completeness and up-to-dateness.
