Data Literacy: HR’s Strategic Asset

Digitalization presented the advent of different HRIS tools, leading to data literacy being an HR asset. This also increased the need of HR personnels to analyze and synthesize data effectively. As a result, being data literate has become an in-demand skill for HR. On top of that, it has also become one of the most important factors that helps in the success of businesses.

Now, organizations invest heavily in technologies that enable their workforce to interpret data. In fact, this is done to continue adding value to the entire business. However, the ability to comprehend data effectively is different. Also, this is where data literacy is needed—particularly in terms of HR.

But what does this really mean?

Understanding HR Data Literacy

HR data literacy is deriving relevant and practical information from data. Rather than simply looking at and identifying information, a data literate HR personnel draw interpretations from the obtained insights. Thus, enabling them to drive informed decision-making and strategic planning to improve HR processes. Moreover, data literate HRs can help develop and implement new processes to elevate products, services, and experiences.

Hence, understanding how data is intertwined in the daily processes of an organization and its people can help businesses realize their full potential. Also, HR data literacy can yield dramatic gains for businesses since digital literacy is a great HR asset.

Consequently, these benefits include reduced costs, improved employee retention, increased revenue, better decision-making, increased innovation, and greater customer experience, among others. Furthermore, being data literate plays a critical role in developing the competency of the whole organization.

Advantages of being Data Literate

1. Efficient Operations

Improved data literacy has been directly linked to productivity and profitability. In fact, business leaders who regard data literacy as an important HR asset and skill among HR personnel achieve greater success.

Consequently, data literacy improves the job performance of the workforce provides access to a range of tools and meaningful information. Thus, enabling employees to play a critical role in achieving an organization’s objectives.

Data literacy also boosts the confidence of employees. In fact, 85% of workers who consider themselves to be data literate claim they are performing better at work. Hence, these employees also develop the initiative to offer support to their colleagues—resulting in better teamwork and increased productivity.

Additionally, HR data literacy helps organizations create an environment of transparency and trust. Hence, this is manifested when HR can turn company data into accessible, easily digestible, and actionable information.

Indeed, the edge gained from being data literate has several performance-related indicators, especially in HR. More importantly, being HR data literate reduces errors while increasing work efficiency—thus improving the overall performance of the company.

2. Data-informed decisions

Lack of information results in counterproductive decisions. Moreover, in today’s competitive workforce landscape, one wrong decision can have an adverse impact on the company. Thus, effective HR decision-making is needed.

To do this, there must be access to accurate and relevant data—extracted and analyzed by employees with a strong understanding of analytics. Also, data literate organizations will have an easier assessment of the micro and macro aspects of the company. In addition, data literate HRs can identify trends and patterns relevant to solving business challenges from the generated data.

Additionally, a thing with HR data literacy is having enough information to work with. However, to achieve the best possible outcome, data-driven decisions should be balanced with human perception. This not only enables better resource allocation but also fosters a more inclusive workplace culture. Furthermore, organizations that blend data with user feedback, opinions of stakeholders and other input add more value to their products or services.

Hence, initiatives aimed at developing these analytical abilities are also expected to become increasingly important in talent management departments worldwide. Also, this ensures that the organizations remain competitive in an increasingly complex business environment.

3. Effective KPIs

Knowing an organization’s performance in different areas, such as employee engagement, retention, diversity, turnover, and training, is important for growth. Therefore, by leveraging advanced technologies, HR can better understand employees and set attainable Key Performance Indicators (KPIs). As a result, the effectiveness of the company processes in line with the KPIs can be measured easily with data that can be backed up anytime.

More importantly, organizations can use data to gain insights into the performance of their workforce by using meaningful KPIs. Thus, enabling them to develop effective strategies for successful HR management. This can also increase employee satisfaction because the standardized KPIs will make it easier for employees to focus on their professional/career objectives.

Furthermore, HR personnels can easily identify the factors that support KPIs and impact organizational outcomes using accurate data. Additionally, with measurable data at hand, organizations can track their progress towards achieving their goals and objectives. Hence, data literacy can be your HR’s greatest asset.

Improving Data Literacy as HR Asset

The world of business is becoming more data powered as time passes by. In line with this, businesses need to increase the data literacy skill of employees, especially HR. Hence, the lack of understanding of how data works and how it affects the organization may lead to data misinterpretation. As a result, this, in turn, can lead to more negative results and decisions that adversely affect daily work life.

Consequently, to thrive in today’s volatile global markets, business leaders must be conscious of data collection, storage, and interpretation. Hence, organizations must prioritize improving HR data literacy to remain competitive and achieve sustainability.

How can HUREY help

Unbeknownst to some, HR data literacy is one of the most strategic assets every company can have. Therefore, having HR professionals who are data literate is important.

Also, it is crucial to have the right people who will interpret, explore, and process data efficiently. However, to build a strong data culture, companies also need to find the right HRIS that will break the boundaries of data and analytics.

Hurey is an HRIS created to support HRs in their journey of becoming data literate. Thus, the system is built with customizable features to accommodate your company needs. Moreover, you can customize Hurey to provide only the relevant information that you need for data analytics. Indeed, you can significantly increase HR data literacy with Hurey.

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This is the perfect time for you to increase your HR’s data literacy with Hurey!

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