The Download: HR Technology Trends, September 2025

Over the past few months, the conversation has shifted from "what tech can do" to "what tech forces HR to do differently." Security, consolidation, platform wars, and the uneven labor effects of artificial intelligence have all risen to the top. 

For CHROs, the question is less about piloting cool tools and more about governing risk, rewards, and organizational design for a hybrid human–agent future. Here is our monthly roundup of key developments in HR technology, plus insights on how to tap into the power of those trends: 

1. When Hackers Hit HR: Lessons from the Workday Breach 

The Download: Workday recently confirmed a breach in which hackers exfiltrated personal information from a third-party customer relationship database. The enterprise AI resource planning firm said there was no indication that customer tenants were accessed, but it's possible that the stolen contact data could be leveraged for large-scale social-engineering attacks. 

The Upload: HR leaders can't treat vendor security as just IT's problem. Breaches put employee trust, engagement, and even retention at risk. Demand transparency from vendors, bake incident response into communication plans, and test your ability to notify and support affected employees quickly. Procurement and HR must now jointly own this risk.

2. Benefits Consolidation: Simplicity, But More Vendor Risk 

The Download: Gusto, an HR tech company valued at nearly $10 billion, acquired Guideline, a retirement plan provider focused on small- to medium-sized businesses. This signals continued consolidation of payroll/benefits stacks into single vendors that serve small and mid-market employers. The move brings retirement plan administration closer to payroll, human resource information systems (HRISs), and benefits admin under one roof.

The Upload: Bundling payroll, HRISs, and retirement can simplify administration and boost participation. But it also concentrates risk in fewer vendors. Use this trend to rethink total rewards. Integrated data makes it easier to spot gaps and target financial wellness programs. Negotiate for open data access to avoid vendor lock-in. 

3. AI's Early Impact: Job Losses and Premium Pay

The Download: Framing the results as "canaries in the coal mine," Stanford's Digital Economy Lab released a report saying that since the widespread adoption of generative AI (GenAI), early-career workers (ages 22-25) in the most AI-exposed occupations experienced a 13% decline in employment. The report — which also highlighted wage premiums for AI skills and meaningful shifts in task composition — is a reminder that empirical effects of AI are emerging now, not sometime down the road.

The Upload: CHROs now have to balance two realities: AI is creating premium pay for certain skills (driving retention and compensation pressures) while simultaneously changing the nature of many roles. Strategic responses should include a coordinated skills taxonomy, differentiated reward frameworks for AI-adjacent roles, and aggressive reskilling programs anchored in measurable business outcomes.

4. OpenAI Enters the AI Hiring Boxing Ring 

The Download: OpenAI announced an AI-powered hiring platform aimed at competing with LinkedIn. The product promises native GenAI assistance for sourcing, matching and candidate engagement, moving hiring workflows closer to model-driven automation. The company expects to launch their OpenAI Jobs Platform in mid-2026.

The Upload: For HR, the implication of this news is twofold. On the opportunity side, tighter AI-driven sourcing and conversational outreach can reduce time-to-fill and expand talent pipelines if implemented responsibly. On the governance side, new entrants (especially AI-native ones) change the bias, privacy, and compliance calculus. HR leaders must ensure model explainability, fairness testing, consented data use, and audit trails for hiring decisions.

5. Private Equity's Bet on HR Tech Raises Stake for Employers

The Download: Private equity firm Thoma Bravo recently agreed to acquire Dayforce, a Minneapolis-based HR software provider, in a sizeable deal — a reminder that private equity firms are actively buying large, mission-critical HR platforms. The $12.3 billion price tag shows how strategic these platforms are to enterprise operations.

The Upload: Private equity ownership tends to drive product consolidation, margin optimization, and pricing changes. In the face of faster product changes and potential shifts in pricing and packaging, HR leaders should audit which critical HR processes depend on these platforms, ensuring you can export data easily, and include change-of-control clauses in contracts. Be ready to leverage any accelerated innovation, but protect business continuity first.