Human resources professionals have access to more data than ever. They typically use the information to help them make informed, strategic decisions about employment performance, retention and more. But research shows not everyone in HR has the data analytics skills to interpret the data and use it to tell stories that help organizations meet their goals.
Most businesses use people data to make decisions, but a 2021 report by business management platform Sage found 62% of HR leaders say they’re unable to use analytics to identify trends within that information and provide actionable steps.
“There’s definitely a gap,” said John Hausknecht, professor and chair of the department of human resource studies at Cornell University. “Because of the slow addition of analytics to undergrad and master's curricula, there's a huge pool of HR professionals who've never had a course in people analytics or talent analytics.”
As organizations continue to rely on data to inform all aspects of the business, there is an increase in demand for HR to “bring data to bear” and make more data-driven recommendations. That means individuals who lack analytics knowledge will need to look for opportunities to upskill.
The Growing Demand for HR Data Literacy
Data literacy is a crucial skill for understanding and using data effectively. Statistics knowledge enables HR to pull out trends and implement solutions, such as identifying the right candidate for a role or deciding when to promote someone.
Lisa Brooks Greaux, a talent consultant and a professor at Montclair State University in New Jersey, said she regularly hears from HR executives that their teams need more proficiency in data analytics. To meet that need, the university has incorporated analytics into its undergraduate curricula and developed a master’s degree program in human resources analytics.
The reason is evident: “Data helps us make informed decisions about many aspects of the workforce — recruitment, training, performance and retention,” she said. “It takes the subjectivity and people’s decisions out of it.”
Julie Fink, vice president of HR talent management at the University of Phoenix, said HR also needs to be able to collect or request the right data to solve a problem. This involves asking the right questions and communicating effectively with whomever is assembling data, if it’s not done by the HR team.
Once data is collected, it’s then vital to know how to translate the findings into actions and make recommendations to company leaders, Hausknecht added. That is why Cornell now includes HR analytics courses in its undergraduate program, a decision that Hausknecht said provides “a combination of framing analysis and recommendations.”
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The Benefits of Upskilling for HR Teams and Their Organizations
Acquiring or beefing up analytics skills can allow HR professionals to build longevity in the industry. “Being able to continually show your value to the organization is absolutely critical, not only from an HR function but because we can help drive the business results,” Fink said.
Analytics knowledge also gives individuals credibility and influence in their organizations by showcasing successes and demonstrating to company leaders that investments in HR practices bring positive impacts, Hausknecht said. For example, data may show that salespeople in a certain region grew their business by 20% after HR implemented a training program in that area.
The ability to tell stories with data also boosts an organization’s competitive edge by allowing it to hire and retain the best talent, Greaux added. “It gives that reputation that they’re at the forefront of how they make decisions, how they use data.”
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4 Options to Improve Your Data Analytics Skills
Many HR professionals understand that data analytics skills are key to staying competitive in the field. Greaux believes those skills will be central to the workforce of the future.
There are several ways to acquire HR data analytics skills, including the following four:
1. Analytics Courses
Local community colleges, professional HR organizations and HR management platforms often offer courses and webinars in data analytics or statistics that can help HR professionals get started with their upskilling.
Some organizations may also offer internal courses in analytics to equip HR teams to better implement their own systems, tools and metrics.
2. Graduate Degrees
Getting a master’s degree in HR analytics can help professionals build skills and become more competitive in the industry. Several universities offer such graduate programs either online or in person, including Montclair State, the University of Phoenix and New York University’s School of Professional Studies.
When deciding on a program, Greaux suggests making sure it covers a “comprehensive range of topics,” such as data collection, predictive modeling, strategy and analytics in HR decision-making. Also, seek out programs from well-known institutions with instructors who have industry experience.
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3. Certification Programs
Some professional organizations and universities also offer certificates or credentials in HR analytics, including Cornell, the University of Pennsylvania’s Wharton Executive Education, and the Society for Human Resource Management. Many of those programs are self-study and online for professionals to complete in their own time.
In some instances, companies may even cover the costs of completing these programs.
4. Analytics Experts
Establishing a mentor relationship with an HR leader with a strong “analytical acumen,” within or outside an organization is another way to build analytics skills, Hausknecht said. Inside the company, this may mean meeting with the “numbers people,” such as the finance or supply chain teams who also use analytics. “Pick the brains of people that do this kind of thing,” Fink said, to learn how they collect and interpret data to meet their goals.
Whatever route you take, learning analytics can take time. “It’s one of those areas where you don’t go from novice to expert immediately,” Hausknecht said.
But, you will become more equipped to understand, interpret and tell stories with your people data, he added — something Greaux believes will be vital for the future.
“I would tell any HR professional who is looking to have an impact in their organization that they should run quickly and get engaged with analytics and what it can do for them,” she said.