HR used to be all about people. People and data are now the focus. While this might seem surprising, it is the reality of anyone who wants to move up the HR ladder. No longer can we rely solely on gut instincts and intuition.
As you move up the HR ladder, you will be faced with more and more data. You can either master this data or risk being left behind.
Data is messy, imperfect and, despite what others may tell you, never tells the entire story. Yes, data is powerful. But it also needs nuance, context, and a healthy dose scepticism.
Here’s the hard truth: if your numbers aren’t accurate then every insight that you gain from them will be as useless as a fortune-cookie. In HR, where data is critical, it’s not acceptable to use careless information.
How can you effectively manage HR’s goldmine of data? You need to dig deeper and test everything. Never take numbers at their face value.
The higher you go, the heavier the data load
Data becomes a necessity the moment you reach a senior level in HR. As you advance in your career, data will become more important to understand complex patterns of employee engagement, performance and retention. It’s not only about accumulating numbers, but also about understanding the stories they are trying to tell.
As I advanced in my HR career, I began to enjoy working with data.
Data told me a story and provided insights that could lead to real change. But I learned quickly that data alone is not enough. The numbers may not be a complete picture just because they say something. This story requires a plot review, additional context and fact-finding in order to uncover what is actually happening.
Let’s be honest, data that is not verified can lead to false assumptions. What about those headcount figures, attrition rate or employee engagement scores. These are just the beginning.
You’ll have to do the digging to find out what else is there. You’re only scratching the surface.
McKinsey research, for example, shows that Black workers are 41% less likely to receive promotions than their white counterparts in spite of similar performance ratings.
HR leaders can’t uncover disparities in their data if they don’t dig deep.
Why Data Alone isn’t Enough
As I began to work more with data, it became clear that this was a slippery slope. You can miss the big picture if you rely too much on one metric. Data tells us a lot, but not everything.
The numbers don’t always tell the whole story.
Imagine a report from HR that shows a decrease in productivity within a certain team. You might assume it’s because of poor management or a lacklustre performance.
If you just stop at that, you miss the context. Maybe the team has been dealing with a heavy workload or maybe they have had a recent high turnover rate. The numbers are clues but not conclusions. To get the full story, you need to dig deeper and start asking questions.
Data should not make us complacent, but curious. Ask yourself, “What’s behind those numbers?” Instead of accepting it as is, you should ask: Why are these numbers there? Data can be misleading if you don’t understand the context and find out what is behind it.
Accuracy Matters: Garbage In, Garbage Out
You can easily get carried away by the thrill of having so much data at your fingertips. The data will be worthless if it is not accurate. Accuracy can be difficult to maintain in large companies with thousands of employees.
Data accuracy was a key concern for me, particularly in large companies with 40 000 or 80 000 employees. If the information you provide is flawed, it will affect your results.
I didn’t just assume that the data was correct because it was present. I often tested it by asking department heads for double-checking records, cross-referencing entry, and making sure that what was written on paper matched the reality.
It’s also not only about catching errors. Actively verifying the numbers with reality is what’s required. This means talking to department heads and comparing records. If your data isn’t solid, then you’re guessing. In HR, making guesses could cost you credibility, trust and resources.
Diversity, equity, and the power of data
Let’s now talk about diversity, one of the most powerful data-driven ways to drive change. Are we measuring diversity and equity at work? Are we using these measurements to make meaningful change?
Data can be an effective tool in the fight against unfairness. You can tell who is getting ahead by analyzing the patterns of promotion and hiring.
It’s a warning sign if your data indicates that a large number of promotions go to one particular demographic. This doesn’t necessarily mean that discrimination has occurred, but there is something you should investigate.
Data has proven to be essential for understanding fairness and transparence in the workplace. By examining hiring and promotion statistics, I was able to spot discrepancies which might otherwise have gone unnoticed.
This data can be used to spark deeper discussions, for example, if certain groups seem to get promoted more than others, even though everyone seems qualified. This is a great way to confront biases, and ask tough questions like “Why are certain demographics promoted more than others?”
The numbers are not lying. The Black Equity Organisation published a report in 2023 that showed over 60% of Black people felt they were overlooked for promotions because of their ethnicity. According to a study by Financial News in London, of 1,500 senior bankers only 22 were Black. This shows a serious underrepresentation of Blacks at the leadership level.
These statistics show how far we have to go.
Data can help you to have difficult conversations and ask leaders why certain groups were left behind. It can also challenge your assumptions and biases.
This is a tool to ensure accountability and not just reporting.
Data can be used to drive real progress when it is properly utilized. It can help to close the wage gap, improve hiring practices and give every employee a fair chance at success. It starts by digging, asking questions, and holding people responsible.
Aligning data with strategy: the true power of HR analytics
Data doesn’t just show trends, it helps shape strategy. Imagine knowing which teams will burnout in advance. Or, identify the programs that have the best return on investment. You can align HR goals with those of the company by using strategic data. This will transform it from being a support to a value-adding function.
If labour costs per FTE are increasing, this is a sign. This could be something as simple as increased overtime or more complex like an overworked staff in need of extra hires.
Data alone does not tell you what you should do, but can point you in the right directions. HR leaders must connect the dots, interpret the signals and use them as a guide to the business.
With real-time data we can adjust the moment rather than waiting until the end of the quarter. Data-savvy HR teams are characterized by their agility. They do more than just report on business, they also help shape it.
Do not just sit on your data, but dig in!
Not all HR departments use their data. Do not let valuable insights collect dust. Data can transform the workplace. It can reveal hidden patterns and make HR an important partner for the business. But only if you dig deeper, ask questions, and act.
If you haven’t already invested in data skills, now is the time to do so. Learn the basics of data analytics. Understand what your data says and use them to make impactful, informed decisions. Your data goldmine awaits. You must start digging.
