How HR System Architecture Impacts Data Security
A close look at HR system design—especially the contrast between Single-Tenant and Multi-Tenant models—reveals just how critical data protection has become in today's business landscape. HR records are both sensitive and highly attractive to cybercriminals, a reality underscored by multiple high-profile breaches. In 2025, for instance, Allianz Life confirmed a data leak affecting most of its 1.4 million U.S. clients. Attackers gained entry through a third-party cloud system, compromising financial professionals and some employees. This incident highlights the dangers inherent in Multi-Tenant architectures.
Another major cyberattack hit Capita in 2023, leading to a £14 million fine from UK regulators in 2025. The breach exposed personal data—including financial details—of 6.6 million individuals. These cases make it clear that choosing the right HR system architecture demands careful consideration, especially given strict data processing regulations like Ukraine's Personal Data Protection Law, GDPR, and NIS2.
Why Single-Tenant Architecture Stands Out
Against this backdrop, Ukrainian company HURMA markets itself as the country's only HR system built on a Single-Tenant model. This approach gives each client a separate, isolated environment, significantly reducing the risk of data leaks.
“Companies handling sensitive information often come to us because we use Single-Tenant architecture. Every client's data is kept separate—while in other products, data from multiple companies, sometimes competitors, is stored together… It's the best model, and it's unique on the market.” — Volodymyr Fedak, CEO of HURMA
Data security in HR systems is paramount, especially considering that HR teams can spend up to 43% of their time on operational tasks. Equally important is a system's ability to meet European GDPR standards. This makes Single-Tenant architecture particularly appealing for fast-growing companies and sectors where handling sensitive data is mission-critical, such as fintech, healthcare, and defense.
Natalia Vysotska, Head of HR at codeIMPL, stresses the importance of choosing a reliable system:
“We tried one of the popular Ukrainian systems before and I was very dissatisfied. One time, their privacy settings completely broke down. It's a good thing I happened to check it on a Friday evening, saw the issue, and fixed the access permissions in time. After that, we switched to HURMA.” — Natalia Vysotska, Head of HR at codeIMPL
In short, Single-Tenant architecture offers clear advantages: lower risk of data breaches, simpler communication with technical teams, and greater confidence when scaling. These benefits make it especially valuable for organizations working with sensitive information. As cyber threats continue to rise, data security has become a top priority for every business.
Given the growing importance of protecting personal data in HR systems, companies must carefully evaluate their architectural choices. Data leaks not only damage reputations but can also lead to massive financial losses. The decision between Single-Tenant and Multi-Tenant architectures affects not just security, but also customer trust—a critical factor for any company operating in sensitive fields.