Use HR data to make better decisions for your workforce

Recent international reports (HR.com 2024, and Insight222 2024) suggest that only a few organisations effectively use HR data in their decision-making processes. Conversely, companies that interpret HR data and make it available to management are much more effective at developing their organisation.

Where does this discrepancy come from, and how can it be addressed?

The purpose of HR analytics is not to report, but to provide direction

At its core, HR analytics is not about new metrics or impressive tools. Rather, it's about interpreting HR data through strategy.

For example, how can you tell if there is a growing skills shortage in a certain department if the turnover figures don't yet reveal it? Where in the organisation do signs of exhaustion first appear before sickness absence rates start to increase?

Such questions cannot be answered by historical data alone. This is why more and more organisations are moving towards predictive analytics. These tools allow you to identify weak signals early on, model alternative scenarios and make decisions before problems escalate into crises.

HR data brings transparency to equality, competence and experience

One of the most interesting developments is the use of HR data to promote equality and inclusivity. According to Insight222, 80% of large organisations already use data for this purpose. This could involve salary benchmarking and complying with the equal pay directive, anonymising the recruitment process, or analysing how different groups perceive the relevance and inclusivity of work.

Another growing area is skills analysis. Many companies are now creating competence maps.

• What talents and skills do we have?
• Which ones are lacking?
• How can we systematically develop them?

This ensures that training and skills development are targeted correctly and that future business needs are met.

Similarly, data collected from employees through feedback, pulse surveys and internal discussions can provide valuable insight into the working culture in practice, which would otherwise be difficult to access or measure. Including this data in analytics can help to understand what matters in areas such as staff retention, motivation and customer experience. It can also be used to cultivate a positive employer brand for potential future employees and customers.

The value of data depends on its quality and how it is used

However, technology is usually not the biggest bottleneck. According to a report by HR.com, the main obstacle to using data is a lack of skills. HR professionals often lack the ability to interpret and discuss data with business leaders.

Interim experts can help to address skill shortages

This is solvable. By developing these skills and equipping HR Business Partners to interpret data, HR can evolve from an administrative unit into a strategic business driver. At their best, HR can act as a bridge between management, analytics and day-to-day operations.

At the same time, collaboration between HR and data analytics teams will become invaluable. This will foster a shared language and goals, and improve understanding of the business's objectives and the challenges it faces in achieving them.

The future doesn't just come out of nowhere - it is made

Generative AI is finding its way into HR departments. Many organisations are already testing its use in areas such as survey analytics, internal communications, and skills development simulations.

However, as Insight222 warns, automation cannot replace understanding. The best results are achieved by combining analytics with human insight and contextual understanding.

HR's role is therefore both facilitative and proactive. This also means that organisations are increasingly being managed from the future, not the past.

The role of HR changes when it embraces data

When it comes to HR analytics for business, it's not about who can create the most impressive dashboards. It's about asking the right questions and having the courage to lead with data, even when it reveals uncomfortable truths.

When used correctly, HR data is more than just a report. It provides guidelines on what and why to transform and where to keep the status quo.

And that, if anything, is at the heart of business.

Sources used include:

Zalaris: 5 HR Analytics Trends to Watch in 2025

Insight222: Five Trends Shaping People Analytics in 2024

HR.com & HireRoad: State of People Analytics 2024-2025