In today’s fast-changing business landscape and with rapidly evolving technological advances, the importance of being proficient in data literacy – in general, and in Human Resources (HR) in particular – has become more critical than ever. Across the business world, data literacy is set to be the most in-demand skill by 2030 – a study by Qlik in 2022 found that 85% of C-suite executives believe that being data-literate will be as vital in the future as the ability to use a computer is today.

Insight222’s most recent People Analytics Trends survey confirms that scaling data literacy is a strategic priority for CHROs, with 85% of companies confirming that the CHRO has emphasised people data and analytics as an essential component of the HR strategy. However, only 58% of companies report that they have a data-driven culture for people data and analytics today, and only 51% of companies report that HR Practitioners are actively developing their data literacy skills to become more data driven.

What is Data Literacy?

Data literacy for HR professionals is defined as the ability to interpret insights from data and use them to inform decisions that create value in their everyday roles.

This means interpreting insights from data, reports and dashboards, using insights to make informed decisions and actionable recommendations and being able to consult with business leaders using data. Data literacy does not require HR professionals to become data scientists. However, every HR professional will need to be digitally literate and analytically capable.

As organisations become more data-driven, HR professionals must shift from being administrative support providers to strategic business partners. By using data and insights, HR can contribute to key business discussions, influence leadership decisions, and drive organisational success.

What are Examples of Data Literacy in Practice?

Insight222’s research found that in 62% of companies, HR practitioners regularly use people data and analytics insights in their day-to-day jobs. A strong partnership between people analytics, HR professionals and business leaders positions HR as a strategic partner to the business. A data-driven culture for HR will follow when data literate HR professionals are able to scale people analytics to the business by using data and insights in their day-to-day jobs.

To bring this to life, and help de-mystify the concept of data literacy, here are some examples of what this looks like in practice for HR:

1. Data Driven Decision-Making

By leveraging workforce analytics, HR can provide insights into employee performance, productivity, and satisfaction. These insights allow HR leaders to make more informed decisions about hiring, promotions, and workforce planning. Data driven HR practices ensure that organisations are proactive rather than reactive in addressing talent needs.

2. Enhancing Leadership Conversations

HR professionals who understand and communicate data effectively can bring valuable insights to executive meetings. By presenting workforce trends, employee engagement data, and predictive analytics, HR can influence leadership strategies. Instead of relying solely on intuition, HR can back recommendations with solid evidence, making it easier to gain executive buy-in for key initiatives.

3. Aligning HR with the Business Strategy

HR teams can use data to align talent management strategies with business objectives. For example, if a company aims to expand into new markets, HR can use workforce data to determine the skills required, assess existing talent, and identify gaps that need to be filled. This ensures that HR initiatives directly support overall business growth.

4. Optimising Workforce Investments

Data literacy enables HR to measure the effectiveness of initiatives such as training programs, employee benefits, and recruitment strategies. By analysing return on investment (ROI), HR can optimise spending and justify budget requests with concrete data. This makes HR a more credible and strategic player in financial discussions.

5. Improving Employee Experience and Engagement

By analysing employee feedback, attrition rates, and workplace sentiment, HR can identify areas for improvement and create targeted strategies to boost engagement and retention. A data-informed approach helps HR implement initiatives that have a measurable impact on employee satisfaction and productivity.

How Can HR Professionals Develop Data Literacy?

Insight222’s research into upskilling the HR profession identifies five skill areas that HR practitioners need to develop as a priority to build data-driven capability across HR. These are:

Make actionable recommendations from insights
Manage stakeholder relationships with business leaders
Consult with business leaders to frame business questions and build hypotheses
Interpret insights from data, reports and dashboards
Tell stories using data

These skills are considered complex as they relate to people’s behaviour and are not merely functional expertise. Progressing skills in all five areas simultaneously and at scale is critical for people analytics to have real business impact in the organisation.

To truly transform the way HR professionals think of and use data, immersive learning experiences that allow for peer-to-peer exchanges, role-modelling, coaching, and simulation are necessary. The creation of a “safe sandbox” where participants can practise applying the concepts and frameworks they learn is essential for success.

As technology evolves, HR professionals should stay informed about emerging trends in HR analytics, artificial intelligence, and workforce data management. Reading industry reports, attending HR analytics and technology conferences, and joining HR analytics communities can help HR professionals enhance their knowledge.

To explore how HR professionals can develop these critical skills and scale data literacy across the function, join our exclusive 60-minute webinar, Upskilling HR in Data Literacy for Strategic Impact, on April 2, 2025, at 4:00 PM GMT. Hosted by David Green, Managing Partner at Insight222, this session will feature myself and Shannon Rutledge, Director of People Analytics & Data Solutions at T. Rowe Price.

Together, we will explore why data literacy matters for HR, who owns the responsibility for upskilling, the five core skills needed for success, and practical recommendations, including a case study on how T. Rowe Price is driving data literacy at scale. Join us now!

Upskilling HR in Data Literacy for Strategic Impact

HR professionals who develop data literacy skills can enhance their ability to make evidence-based decisions, improve talent strategies, and demonstrate their value to the organisation. By embracing data analytics, HR can move beyond traditional administrative functions and become a key driver of business success. As organisations continue to rely on data driven strategies, HR professionals must evolve to remain relevant and impactful in the modern workplace.

Investing in data literacy is not just an option—it is a necessity for HR’s future.

ABOUT THE AUTHOR

Naomi Verghese – Senior Director, Research & Events at Insight222®

Naomi is an experienced business professional with over 15 years’ experience, mainly in the financial services industry. She has undertaken roles as an HR business partner, HR chief of staff, and as a commercial sales analyst during her time at Barclays. Naomi played a key role in the establishment of the people analytics team at Barclays and led the development of a people analytics consulting capability. In the last eight years, Naomi has dedicated her career to people analytics, with particular expertise in consulting with business executives, HR leaders, and other stakeholders.

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The Importance of Data Literacy Skills for HR Professionals