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Building a secure HR data foundation: A guide for growing Canadian businesses
Get Canadian workforce data and practical action frameworks to help your
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Infographic Top trends and priorities for 2026
Top workplace trends and priorities for 2026
Ethical management of employee and company data has emerged as a primary concern for employers across Canada, particularly as business size and the volume of sensitive employee information grow.1 ADP Canada’s workplace trends for 2026 survey reveals that larger organizations are more likely to have formal policies and governance frameworks in place to support ethical data management, while smaller and growing businesses may lack the same level of structure.1 This gap presents a challenge and opportunity for both small and growing businesses.
As organizations scale, priorities tend to shift to efficiency, expansion and operational demands, leaving ethical data management, including ethical artificial intelligence (AI) systems management, deprioritized. Fewer than half of organizations consider ethical AI management a priority.1 Along with ethical AI management, threats to information security loom large, with 82% of companies expressing concern about data security threats. The absence of these policies is not intentional, but a result of limited resources and evolving business needs.
For HR teams, these gaps present a challenge: Manage employee data ethically, consistently and responsibly as workforce size, systems and expectations grow.
Key Insights
As businesses grow, HR data becomes more complex and requires more consistent and secure management.
Ethical HR data practices go beyond compliance, focusing on responsible and transparent use of employee information.
Security expectations naturally increase as organizations scale, calling for more structured controls and governance.
Strong data hygiene helps growing Canadian businesses protect employee information while supporting sustainable growth.
Table of Contents
Why HR data risk increases as businesses grow
HR data risk can increase as businesses grow simply because growth naturally means there is more employee information, more systems being managed and more people who need access to data to do their jobs effectively. Processes and tools that worked in early stages may no longer fit the needs of a more complex environment. Growth changes the volume, visibility and movement of information across the organization, which can result in an increase in HR data risk over time.
Common HR data risks growing organizations face
As businesses grow, HR teams may begin to experience some of the following:
- Employee data spread across multiple tools and files, including spreadsheets, shared drives, email and HR systems
- Manual processes that persist longer than intended, increasing the chance of errors or outdated information
- Expanded access to employee data as more managers and teams get involved, without regular permission reviews
- Inconsistent data handling practices across departments or locations
- Increased reliance on third-party vendors, adding responsibility for how employee information is shared and protected
On their own, these challenges can be managed, but together they make it difficult to keep employee data organized, consistent and secure as businesses grow.
How security expectations change as organizations scale
As businesses scale, expectations around HR data security naturally evolve, reflecting the increasing complexity of managing larger volumes of sensitive data. In the early stages, security may often be handled informally or with basic measures, such as simple password protection and limited access controls. Access to employee information may be based on trust, approvals are handled on an as-needed basis and files are stored manually across shared drives or folders. These approaches can work when teams are small and data volumes are limited.
As a company grows, security expectations begin to shift toward more structured and consistent practices. Growing organizations can introduce comprehensive security measures, such as multi-factor authentication (MFA), advanced threat detection, robust data encryption protocols and role-based access. Processes are documented, access is regularly reviewed and risks are addressed proactively rather than reactively. By scaling security measures in tandem with growth, businesses can effectively safeguard their critical assets and maintain stakeholder trust amid evolving security challenges.
HR data hygiene checklist for growing businesses
Use this list to help keep employee data organized, secure and handled responsibly as your business grows.
| Steps to take | |
|---|---|
| Policy creation |
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| Data inventory and classification |
|
| Employee data organization |
|
| Access and permissions |
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| Data handling practices |
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| Employee consent and communication |
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| Regular data audits |
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| Data backup and recovery |
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| Training and awareness |
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| Third-party and vendor oversight |
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| Data disposal procedures |
|
Turning trends into action: Building a secure HR data foundation
As ethical data management continues to emerge as a priority for growing organizations, the challenge for HR teams is moving from awareness to action. The risks associated with managing employee information don’t appear overnight — they evolve gradually as businesses add people, systems and complexity. Taking a proactive approach to HR data governance allows organizations to stay ahead of these changes rather than reacting to issues after they arise.
For organizations looking to take the next step, this trend is explored further in our Canada workplace trends for 2026 guidebook, which outlines practical action frameworks HR leaders can use to strengthen data practices, align governance with growth and prepare for what’s next.
FAQs
What is ethical HR data management?
Ethical HR data management refers to the responsible and transparent handling of employee information, ensuring that data is collected, stored and used in a manner that prioritizes privacy and security. For growing Canadian businesses, this means adhering to legal standards, such as the Personal Information Protection and Electronic Documents Act (PIPEDA), while fostering a culture of trust and accountability. It involves obtaining informed consent from employees, minimizing data collection to only what is necessary and implementing robust security measures to protect sensitive information from breaches.
Additionally, ethical HR data management encompasses the fair treatment of employees throughout the data life cycle, including transparent communication about how their data will be used and the commitment to using it solely for legitimate HR purposes. By establishing these practices, businesses can build a strong foundation of trust and safeguard their workforce's privacy, ultimately contributing to a more engaged and loyal employee base.
Why does HR data security become more complex as businesses grow?
As organizations grow, the amount of employee data increases across systems, users and vendors, making consistent and secure management more difficult without formal processes.
1. ADP Canada, Canada workplace trends for 2026 survey, internal analysis, 2025
This resource offers practical information concerning the subject matter and is provided with the understanding that ADP Canada is not rendering legal or tax advice or other professional services.
