HR used to be about people. Now, it’s about people and data. And while that might sound surprising, it’s the reality for anyone looking to climb the HR ladder. Gone are the days when we could rely on our instincts or gut feelings alone.
Today, the higher you go in HR, the more data-heavy it gets, and you either learn to wield that data, or you risk falling behind.
But here’s the thing about data: it’s messy, it’s imperfect, and despite what some might tell you, it never tells the whole story. Data is powerful, yes, but it needs context, nuance, and sometimes a healthy dose of scepticism.
Because here’s a hard truth – if the numbers you’re working with aren’t accurate, every insight you draw from them is as useful as a fortune cookie. And in HR, where decisions impact real lives, there’s no room for careless data.
So, how do you handle HR’s data goldmine effectively? You dig deeper, test everything, and never take numbers at face value.
The Higher You Go, the Heavier the Data Load
The moment you step up in HR, data stops being an accessory and starts being a necessity. The more senior you get, the more data becomes your lifeline for understanding complex patterns in employee engagement, performance, and retention. But it’s not just about collecting numbers; it’s about reading the story they’re trying to tell.
When I moved into higher HR roles, data became a part of my job, and I found that I actually enjoyed working with it.
For me, data told a story, providing insights that could drive real change. But I also learned fast that data can’t stand alone. Just because the numbers say one thing doesn’t mean they’re painting the full picture. That story needs a plot check, extra context, and fact-finding to reveal what’s actually happening.
Because, let’s face it, data without verification can lead to misleading assumptions. Those headcount numbers, attrition rates, or employee engagement scores? They’re just a starting point.
Each number tells part of a story, but it’s up to you to dig for the rest. Otherwise, you’re just scratching the surface.
For example, research by McKinsey reveals that Black employees are 41 per cent less likely to be promoted than their white counterparts despite similar performance ratings.
If HR leaders aren’t digging deep into their data, disparities like these remain hidden.
Why Data Alone Isn’t Enough
When I started working more with data, I quickly learned that it’s a slippery slope. Rely too heavily on a single metric, and you risk missing the bigger picture. Yes, data tells a story, but it’s not the whole story.
Just because the numbers say one thing doesn’t mean they’re painting the full picture.
Imagine an HR report that says productivity is down in a particular team. You could assume that it’s due to poor management or lacklustre performance.
But if you stop there, you’re missing the context; maybe the team is dealing with an increased workload, or perhaps they’ve had a high turnover rate recently. Numbers are clues, but they’re not conclusions. And to get the complete story, you have to dig deeper and ask questions.
The truth is that data should make us curious, not complacent. Instead of taking it at face value, ask yourself: What’s behind these numbers? Without context, without fact-finding, data can lead you down the wrong path.
Accuracy Matters: Garbage In, Garbage Out
It’s easy to get caught up in the excitement of having tons of data at your fingertips. But here’s the kicker: if the data isn’t accurate, it’s worthless. And when you’re working in a company with thousands of employees, accuracy can be hard to maintain.
For me, data accuracy became a major focus, especially in large organisations with 40,000 or 80,000 employees. The information going in affects what comes out, and if it’s flawed, your insights will be too.
It wasn’t enough to assume the data was right just because it was there. I would often test it, asking department heads to double-check records, cross-referencing entries, and ensuring that what was on paper matched reality.
And it’s not just about catching mistakes. It’s about actively verifying that the numbers align with reality. That means going back to department heads, cross-referencing records, and making sure that what’s on paper matches what’s happening on the ground. Because if your data isn’t solid, you’re just guessing. And in HR, guesses can cost you trust, resources, and credibility.
Diversity, Equity, and the Power of Data
Now, let’s talk about one of the most powerful ways data can drive change: diversity. We’ve all heard about the importance of diversity and equity in the workplace, but are we actually measuring it? And are we using those measurements to make meaningful changes?
Data can be a powerful tool in the fight for fairness. When you study the promotion and hiring patterns, you can see who’s getting ahead and who’s not.
If your data shows that a disproportionate number of promotions are going to one demographic, it’s a red flag. It doesn’t mean discrimination is happening, but it does mean there’s something to look into.
I’ve found that data has been essential in understanding fairness and transparency in the workplace. By looking closely at hiring and promotion data, I could spot discrepancies that might have gone unnoticed.
For instance, if only certain groups are getting promoted, even if every individual seems qualified, that data can trigger deeper discussions. It’s a way to challenge biases and ask hard questions, like: “Why do certain demographics consistently get promoted over others?”
The numbers don’t lie. A 2023 report by the Black Equity Organisation showed that over 60 per cent of Black individuals in the UK felt overlooked for promotion due to their ethnicity. In another research by the Financial News, in the City of London, of the 1,500 senior bankers, only 22 are Black, revealing a significant underrepresentation at leadership levels.
These statistics highlight how far we still have to go.
Data isn’t just there to make you feel good about what’s working; it’s there to help you have those difficult conversations, to ask leaders why certain groups are being left behind, and to challenge assumptions and biases.
It’s a tool for accountability, not just for reporting.
When used right, data can drive real progress. It can help you bridge the pay gap, create fairer hiring practices, and ensure that every employee has an equal shot at success. But it starts with digging, questioning, and holding people accountable.
Aligning Data with Strategy: The True Power of HR Analytics
Data isn’t just about showing trends; it’s about shaping strategy. Imagine being able to predict which teams are at risk of burnout before it happens. Or identify which programs have the highest return on investment. Strategic data use lets you align HR with the goals of the business, turning it from a support function into a driver of value.
For instance, if labour costs per FTE (Full-Time Equivalent) are rising, that’s a signal. It might mean something simple, like increased overtime, or something more complex, like an overworked team in need of additional hires.
The data alone doesn’t tell you what to do, but it points you in the right direction. It’s the job of HR leaders to connect those dots, interpret those signals, and use them to steer the business.
And with real-time data, we can now adjust in the moment instead of waiting for the end of the quarter. This agility is what sets data-savvy HR teams apart. They don’t just report on the business; they help shape it.
The Bottom Line: Don’t Just Sit on Your Data, Dig In
Every HR department has data, but not every HR department uses it. Don’t let valuable insights gather dust. Data has the power to transform the workplace, uncover hidden patterns, and make HR a true partner in the business. But only if we dig deeper, question what we see, and take action.
So, if you’re not already investing in data skills, the time to start is now. Start learning the basics of analytics, understand what your data is saying, and use it to make informed, impactful decisions. Your data goldmine is waiting. It’s up to you to start digging.
