Four Elements to Building Data Literacy in HR at Scale
David Green ????
Co-Author of Excellence in People Analytics | People Analytics leader | Director, Insight222 & myHRfuture.com | Conference speaker | Host, Digital HR Leaders Podcast
Data literacy is set to be the most in-demand skill in the workplace by 2030, with 85% of C-suite executives believing that being data-literate will be as important in the future as the ability to use a computer is today.[1] The emergence - perhaps it would be more accurate to say, explosion, of generative AI and GPT models only exacerbates the need for data literacy. This applies just as much for HR practitioners as it does to other business professionals.
Ever since we formed Insight222 in 2017, the elements of developing a data-driven HR function has consistently been one of the foremost topics in conversations with chief human resources officers, people analytics leaders and other senior human resources executives.
88% of CHROs have emphasised people data and analytics as an essential component of the HR strategy
Our research and experience demonstrates that effectively leveraging people analytics to deliver real business value and improve the employee experience is what sets the best HR leaders and teams apart. Building a data-driven HR function and improving the data literacy of HR professionals is a key enabler to achieving this and delivering value on a sustainable basis.
In Excellence in People Analytics , the book I co-authored with Jonathan Ferrar , which was published two years ago this month, we present the Insight222 Nine Dimensions for Excellence in People Analytics? model. The ninth dimension is Culture, which we describe in the book as follows:
Culture, as one of the Nine Dimensions, is focused on building analytically willing and savvy people across the human resources function. It considers the skills and mindset needed for the future HR professional and how these can be developed and instilled to provide a basis for innovation, curiosity and delivering value to the organisation.[2]
Moreover, in the annual Insight222 People Analytics Trends study for 2022[3] , we identified seven characteristics of Leading Companies in people analytics based on data from 184 participating companies. The seventh characteristic (see FIG 1) finds that in Leading Companies: "The CHRO makes it clear that data and analytics are an essential part of the HR strategy and HR business partners are developing their data literacy.”
As the need for, and intricacies involved, in upskilling the HR function in data literacy continue to be a challenge for the majority of companies, we decided to conduct further research at Insight222 earlier this year. This led to the publication of a new report: Upskilling the HR Profession: Building Data Literacy at Scale [4] , which was authored by two of my Insight222 colleagues, Naomi Verghese and Jonathan Ferrar . The report was informed by a survey of 73, mainly global, organisations during April 2023. These organisations collectively employ more than 96,000 HR professionals and 5.6 million employees.
I recommend downloading the full report , but as a taster, the four key insights are:
1. Role-modelling by the CHRO and HRLT is essential.
When the CHRO and their direct reports role-model the use of people data and analytics, HR practitioners use people data and analytics insights in their day-to-day jobs at a much higher level than if neither the CHRO nor the HR leadership team (HRLT) do not personally role-model the use of people data and analytics.
2. Responsibility for upskilling should be with the people analytics leader.
Specifically, when the people analytics leader is responsible for upskilling HR, HR practitioners actively develop their data literacy skills at a far higher level than if any other person is responsible for upskilling.
3. Five skills form the core of data literacy for HR.
These are (a) consulting, (b) influencing stakeholders, (c) data interpretation, (d) building recommendations from insights, and (e) storytelling (see FIG 3).
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4. Invest appropriately for a multi-year upskilling programme.
A data literacy programme to upskill the HR profession requires an investment that totals the equivalent of between $600 and $800 per HR full-time equivalent (FTE). This allows for training, coaching, change management and project management for current and prospective HR practitioners over a two-to three-year period.
The full report , which you can download here , contains chapters on each of the four key findings above and recommendations for building data literacy in HR, as well as case studies and contributions from the likes of RJ Milnor , Madhura Chakrabarti, PhD , Tim Haynes FCIPD , Steve Scott , Tanuj Kapilashrami , Brandon Roberts , Nick Hudgell , Brydie Lear , and Alexandre Piotrowski .
Upskill your HR team in data literacy
If you are a chief human resources officer, senior human resources executive or people analytics leader seeking to improve the data literacy of HR professionals at your company, Insight222 Learning supports all teams from people analytics functions, to HR business partner teams, through to upskilling the entire global HR organisation.?This includes our hybrid, cohort-based learning program, which supports HR professionals build advanced capabilities in data-driven skills. By combining digital learning with interactive bootcamps learners are provided with an engaging experience that brings learning to life. Insight222's bootcamps provide the opportunity to learn from practical case studies and to experiment with data in a safe environment that empowers you to turn theory into practice and apply your learning immediately on the job (see example learning journey in FIG 5 below). You can find out more here .
References
[1] Qlik. 2022. Data Literacy: The Upskilling Evolution .
[2] Ferrar J. & Green D. 2021. Excellence in People Analytics: How to use workforce data to create business value . Kogan Page, London
[3] Ferrar J., Verghese N. & González N. 2022. Impacting Business Value: Leading companies in people analytics . Insight222.
[4] Verghese N & Ferrar J. 2023 Upskilling the HR Profession: Building Data Literacy at Scale. Insight222.
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ABOUT THE AUTHOR
David Green ???? ?is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work.?As Managing Partner and Executive Director at?Insight222 , he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations.?Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics.?David also hosts the?Digital HR Leaders Podcast ?and is an instructor for Insight222's?myHRfuture Academy . His book, co-authored with Jonathan Ferrar,?Excellence in People Analytics: How to use Workforce Data to Create Business Value ?was published in the summer of 2021.
MEET ME AT THESE EVENTS
I'll be speaking about people analytics, the future of work, and data driven HR at a number of upcoming events in 2023:
More events will be added as they are confirmed.
HR Administration Officer
1 年Thank you for this David Green ???? ! Such an outstanding and informative post. Was a great read triggering further exploration.
Co-Founder & CEO at Pasito (YC S22)
1 年Love this post! It's so important for HR professionals to build their data literacy skills.
GVP People Analytics and AI at Servicenow
1 年Love the report! People Analytics teams that aren't investing (both time + money) in this space are going to fall behind. It's the number one way to scale your team's impact... thanks for including me.
Chief People Officer | Digital HR & People Leader
1 年This report is outstanding, David Green ????! Thank you for including me in your research. I believe that data literacy will be one of the biggest challenges facing HR teams over the next 5 years and a key differentiator for those organizations that are able to create step-changes in employee experience and business impact. Your report provides a clear path for how to build data literacy in HR teams effectively. Congrats to you, Jonathan, Naomi, and the Insight222 team!
Founder & CEO @ Lever Talent | Host of The Lever Show | Helping leaders develop talent strategies that leverage a tech-empowered future.
1 年Excellent post, David! I see many parallels in the evolution of people analytics to the marketing analytics space - I see people analytics about a decade behind. That said the trend back then in marketing was all about descriptive analytics - building data literacy and manually analyzing and visualizing data with tools. This sets the stage for evolving into the space of predictive analytics (using data to forecast and predict outcomes). I am hopeful that AI will help leapfrog a lot of the mistakes and learnings that occurred in marketing analytics, allowing people analytics to evolve much faster. Regardless, your call for data literacy is an absolutely critical first step. Talent leaders need to build HR systems, processes, and interventions while considering data collection techniques and requirements. And in order to do that, they must have a base level of data literacy to do that. Thanks for shedding light on such a critical topic. Cheers to data literacy in HR!