How to Empower HR Through Data Literacy
As we continue on our journey through the digital era, the influence of data in shaping business decisions and strategies continues to grow more prominent. We all know that we can’t rely solely on intuition and experience. Instead, we must continue to harness the power of data to gain valuable insights and make informed decisions.
As such, data literacy is set to be the most in-demand skill in the workplace by 2030, our Insight222 Upskilling the HR Profession: Building Data Literacy at Scale research found that "85% of C-suite executives believing that being data-literate will be as important in the future as the ability to use a computer is today." This comes as no surprise as a staggering 88% of Chief Human Resources Officers (CHROs) emphasised people data and analytics as an essential component of their HR strategy, in our recent research, "Upskilling the HR Profession: Building Data Literacy at Scale".
As HR continues to evolve to take on a more strategic role in the organisation, it is crucial for ALL HR professionals to develop data literacy skills that will enable them to leverage data effectively, driver effective decision making, and help impact organisational success.
Core Skills for Data Literacy
A common misconception regarding the concept of data literacy for HR is that it means having a high level of statistical knowledge or advanced technical skills. This is not the case. Data literacy is primarily about understanding how to use data to make better decisions and communicate effectively with data. It's a skill that goes beyond simply understanding numbers and graphs; it involves being able to analyse data, spot trends, and draw meaningful conclusions.
In our recent research, we identified five core skills for data literacy in HR that are required to be effective strategic partners in today's data-driven world:
Consulting
(Source Insight222 “Upskilling the HR Profession: Building Data Literacy at Scale” research)
Effective consulting involves working with stakeholders to understand and address their needs. To advance these skills, HR professionals can benefit from learning analytical questioning techniques that allow them to think critically, fully understand their stakeholders’ challenges, and identify data-driven solutions to these business problems.
Influencing Stakeholders
Data-driven influence is critical in securing stakeholder buy-in. By effectively presenting data that supports stakeholder decision making, HR professionals can more effectively influence and lead organisational change. It is here where training in managing stakeholders and effective data-based conversation techniques is useful.
Data Interpretation
The core of data literacy lies in the accurate interpretation of data, a skill that allows HR to derive meaningful insights from data. This skill is crucial for understanding trends, identifying gaps, and building hypotheses as to the underlying causes of business challenges. To enhance this ability, organisations can implement training on using statistics in HR, ensuring HR professionals are well-equipped to turn data into strategy. In the age of AI, these skills should also be expanded to include AI literacy and understanding how AI will be used within your organisation.
Building Recommendations from Insights
Translating insights into actionable recommendations is what turns strategy into action. For HR, this means taking analytical insights and crafting them into strategic recommendations that address challenges and drive organisational growth. Honing this skill requires a clear understanding of the challenge, a detailed understanding of the data, and the ability to craft the story behind the numbers.
Storytelling
Storytelling with data transcends the traditional narrative approach. It is a strategic tool that communicates the story behind the numbers and drives action. Compelling storytelling enables HR professionals to weave analytical insights into the conversation to drive organisational change. To master this skill, HR professionals should participate in specialised storytelling training focusing on visual data representation and narrative development, enhancing their ability to communicate complex information engagingly and effectively.
How to Start Building Data Literacy in HR
Building a data-literate workforce requires investment, both in terms of time and resources. Our survey of 73 global organisations found that a robust upskilling program requires an investment of between $600 and $800 per HR full-time equivalent.
The Pivotal Role of People Analytics Function in HR Upskilling
Figure 2: HR practitioners are more likely to actively develop skills when the people analytics leader has the upskilling programme as a primary responsibility (Source: Insight222 Upskilling the HR Profession: Building Data Literacy at Scale)
It is not just a matter of investing in training programs. We found that 60% of the companies surveyed confirmed that their HR function actively develops their data literacy skills when the people analytics function is responsible for upskilling; while only 31% of companies are doing so when people analytics is not responsible.
The imperative for a people analytics leader to spearhead upskilling initiatives in data literacy stems from their unique position at the intersection of HR and data science. These leaders possess a deep understanding of HR's strategic importance and a nuanced comprehension of the potential for data to transform HR and business practices. This dual expertise enables them to bridge the gap between data science and HR, translating complex data insights into actionable strategies that HR professionals and business leaders can understand and implement.
People analytics leaders are pivotal in fostering a culture where data-driven decision-making becomes the norm rather than the exception. Their leadership in upskilling initiatives signals an organisational commitment to data literacy, elevating its importance across all levels of the business. By leading these efforts, they not only equip HR professionals with the necessary skills but also champion the cultural shift towards becoming a data-driven function.
The Importance of Role-Modelling by CHRO and HR Leadership Team
This is where the CHRO and HR leadership team's role-modelling of data literacy becomes critical. When leaders exemplify and advocate for data-driven decision-making, it sets a standard throughout the organisation, signalling the importance of data literacy as a valued skill. Therefore, they must lead by example, showcasing their own data literacy skills and actively supporting upskilling initiatives within their function.
Our research found that when the Chief Human Resources Officer (CHRO) and their direct reports actively role model the use of people data and analytics in their decisions and strategies, HR professionals are more likely to do the same.
In organisations where the CHRO and HR leadership teams were effective role models, 70% of HR practitioners were developing their data literacy skills, and 79% were incorporating data insights into their everyday work. This contrasts starkly with organisations where HR leaders don’t role model (with around a third of HR professionals doing so).
The influence of witnessing leaders actively using and advocating for data analytics cannot be overstated. It not only highlights the utility and necessity of these skills but also underscores the value the organisation places on data-driven insights. Role-modelling conveys a clear message about the strategic direction the company is taking, one that prioritises informed decision-making based on solid data analysis. Consequently, HR professionals in such environments are more likely to invest time and effort in honing their data literacy skills, understanding that these capabilities are not only valued but are also critical for their personal development and the organisation's strategic objectives.
This presents a compelling argument for HR leaders to embrace a data-driven culture. CHROs and HR leaders must not only advocate for the importance of data literacy but must also embody it in their actions and decisions. In doing so, they set a standard of excellence and innovation throughout the HR function, bolstering the company's strategic capabilities and positioning it for success in the data-driven age.
Empowering HR through Continuous Learning
To truly empower HR through data literacy, we must also embrace a culture of continuous learning. With the ever-evolving landscape of technology and data, HR professionals must continue to upskill and adapt their capabilities to keep pace with these changes. This can often be a challenge for HR professionals, who may be apprehensive about their data-literacy skills and may not know where to begin.
While there are many training approaches available, we have found great success in working with our clients to deliver immersive learning experiences, focused on providing participants with a solid grounding in the data-literacy skills needed, and the opportunity to practice those skills.
These immersive learning experiences provide HR leaders, HR Business partners, and People Analytics professionals the opportunity to focus on the data-driven skills needed for their level, providing hands-on case studies and data experimentation opportunities in a supportive environment, enabling the immediate application of new skills in professional settings.
Through continuous learning and upskilling, HR professionals can stay ahead of the curve in this data-driven era. By prioritising these efforts, organisations can build a highly competent HR function equipped to drive strategic success through data insights and analysis. And with people analytics leaders at the forefront, championing the importance of data literacy and role-modelling its value, companies will be one step closer to realising the full potential of their people analytics initiatives and the benefits of a data-driven culture.
ABOUT THE AUTHOR
Jay joined Insight222 in 2022 and leads our products and services team. He is a globally respected leader with extensive experience in consulting, product management, and business leadership, with particular expertise in employee listening. Previously, Jay led strategy and revenue growth for EX solutions at Qualtrics and he’s also worked at KPMG, Korn Ferry, IBM, and Kenexa during his career. He holds multiple degrees including a Ph.D. from the University of South Florida in Industrial/Organizational Psychology. Jay has lived in several locations across the USA, as well as in Toronto, Canada. He now resides in Nixa, MO and spends much of his free time watching his daughter play soccer and discussing the latest video games with his son.
Unlock the potential of your people analytics function with our Insight222 People Analytics Program®
Network with peers. Grow your influence. Solve business problems. Learn from industry leaders.
The Insight222 People Analytics Program® is your gateway to a world of knowledge, networking, and growth. Elevate your network and insights with the Insight222 People Analytics Program®. Become part of an elite circle of 100+ global clients driving people analytics forward. Engage in over 40 unique events yearly, from in-person meetings to virtual forums and webinars. Benefit from a program that evolves with your feedback, designed to tackle real-world challenges and ignite innovation in people analytics.
Discover how joining the Insight222 People Analytics Program® can help you deliver real business value to your organisation.