HR functions that use data and people analytics to make important people capital decisions in their organisation see greater business results. However, the Insight222 People Analytics Trends 2021 report found that only 41% of HR business partners believe they are capable of having conversations about data. And just 23% are comfortable using analytics without guidance. This shows that there is a long road to go for HR professionals everywhere to grow the confidence in both interpreting HR data and strategically utilising it to offer true business value.

What are the data driven fundamentals?

By upskilling and implementing data driven fundamentals, HR professionals can begin growing their confidence with the use of data by applying pertinent information collected to effectively evaluate support the business achieve their strategic goals. With the knowledge of the fundamentals, HR professionals can in turn also communicate more effectively and act on it in a manner that guarantees to improve multiple aspects of people capital for the company including, employee experience, employee engagement, learning and development and performance.

The fundamentals can be found with:

Analytical thinking – This fundamental allows the HR business partner to see the big picture. They have the skills to understand the problem at hand that the organisation is facing and is capable to frame the business question in such a way to derive a hypothesis and solution.

Data analysis – This fundamental means the HR professional can interpret the HR data and HR statistics that are gathered and make reasonable conclusions from what they see. By analysing the data effectively through skills of their own or with technology, they then can make educated concludes that either supports or refute their hypothesis.

Workforce planning – This fundamental skill is the ability to act on the information that was gathered and analysed. The HR professional then can effectively communicate their insight and implement it in a way that benefits the company’s current and future goals. Such as, the HRBP has the capability to save the organisation revenue by deciphering what type of employees a business needs and how many they may need at any particular time and implementing a reskilling program.

What is data driven culture?

A data driven culture at any organisation is the unanimous approach by business leaders and HR professionals to implement a data-based approach with their business practice involving people capital. Of the 42% of companies who stated they have a data driven culture, 90% are confident their work deliver value to the business.

So, embracing a data driven culture builds on the HR professionals’ self-confidence even more.

Using data to make decisions

It is one thing to make decisions on theories based on what had happened in the past. But it has been proven that many assumptions are founded on bias which leads to discrimination and exclusions, misled policies, and failed procedures.

When data is used to approach people's problems, organisations and their leaders can make far more educated decisions that drive results. As with leading companies such as Colgate Palmolive, Uber, and Capital One, when they used a data driven approach to combat the challenges they were facing, they saw effective results that improved employee engagement, employee communication and overall employee productivity.

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Making data accessible to managers and HR professionals

Collecting the data is a start, but what continues to drive a data driven approach is to bring in all the resources to make the data effective. Onboarding teams and managers who can bring in a larger pool of insight can assist with the interpretation of the data and come up with possible solution to the problem at hand, and some out of the box.

Also, having effective AI and technology that presents data in an easy to absorb and understand manner allow people analytic teams and HR professionals a better ability to analyse the information and turn it into actionable results.

Delivering business value from data

Once the data is collected, there is not much benefit if it doesn’t solve business problems. For HR data to be worth the energy put into gathering and interpreting it, it requires that it delivers value to the company. The data needs to be presented to the right person at the right time. It needs to be acted on. And it needs to be continually measured. Which is why storytelling is a key skill for HR Business Partners.

When people analytics leaders are asked about the effect of having a data driven culture, 90% of them stated that it delivers business value and 81% state it enables managers to make “in-the-moment” decisions.

So it is not surprising that 60% of people analytics leaders stated that they feel they have the primary task of creating a culture where every HR professional is empowered to use people data to make important decisions. As Steve Scott, Managing Director, Global Head, Workforce Management and Analytics at Standard Chartered Bank said:

“Creating a data driven culture is absolutely one of my key responsibilities that I am passionate about. I truly believe it’s critical for my team to be able to deliver value to the organisation. Whether it’s actually in the job description of a people analytics leader or not doesn’t really matter to me. I know that I have to take that responsibility and work with others across HR to help create a data driven culture. Only once that’s established can a people analytics function deliver value at scale.”

Steps of using data in HR

As much as it is common knowledge that a data approach to HR strategy is vital to successful development of HR policies and procedures, on many occasions it still fails the HR professional and the company, hence they are unable to make effective changes or see profitable results. With so many ways the data driven process can fail, countering the pitfalls and following the steps of using data in HR will prevent the problems before they arise and avoid shattering confidence.

Understanding what data is available – Think and ask the right questions. Frame the right business questions and build hypotheses that need testing, this will provide you with the guidance you need to find the best methods of collecting data. Therefore it’s important to first understand what to research leaves you have at the starting line.

Have the comprehension, computational and software skills – to allow data to be captured, cleaned, processed, and analysed – all so it can be understood and presented to decision makers. Nothing worse than reading the data incorrectly and coming up with false conclusions.

Knowing how to structure, manage, govern, and secure people data – so as the information that is collected is not lost, can be democratised or shared with a large group across the organisation, and protects the personal data that if compromised could lead to harm to the individual.

Knowing what new data sources to seek – this way you can meet ever-increasing requests, challenges, and opportunities. Here data literacy is a must, from learning new software or investigating different types of surveys that all delivery results. Staying informed, gives you and your efforts the best results.

How to grow confidence in using data in HR

An Insight222 study found that a correlation between a lack of capability in analytics skills and low self-efficacy and confidence amongst HR professionals has led to a hesitation of many in becoming effective with utilizing data in HR. One way to counter the insecurities is by embracing the technology that can assist with data collection and analysis and by also reskilling your own talent to improve your abilities to implement data in HR and produce business value results.

To do this:

First, identify the roles and skills that you and your company may need to stay up to date with data analytics.
Then understand and identify the gaps in skills and experience you or your staff may need to build their confidence in utilizing HR data. Insight222's HR Skills of the Future Assessment enables you to identify your learning opportunities
Next, explore what resources are at your disposal, what is trending in HR and what might be most beneficial to you.
Lastly, find opportunities to upskill and transfer those skills into business value using HR data to create effective people capital policies and procedures.

Once you and your staff feel comfortable with implementing a data driven culture in HR, the confidence will grow every time you use a data-based approach to solving human capital challenges. Because, as we all know, confidence grows by doing.

Future Proof your Career with myHRfuture!

We help individuals and organisations reinvent learning. Our learning programs support HR Business Partners to build the skills they need to effectively use analytics in HR to have data driven conversations with the business that drive actionable outcomes. The Data Driven HR Fundamentals certification is a collection of 6 on-demand, video based training courses that can be completed within a 12 month period, at your own pace. This certification program is designed to support you and your team build their skills in analytical thinking, data analytics and storytelling. By completing this learning program you will learn how to better interpret HR data and be confident in having data driven conversations with the business, that drive actionable outcomes.

How to Build your Confidence using HR Data to have Conversations with the Business