Executives in Australia are increasingly turning to talent analytics to derive insights on outcomes such as employee attrition, performance and sentiment to influence talent and business decisions. While many leaders value the availability of this data, few feel confident their organisation is maximising its potential.

According to Gartner research, 78 per cent of HR leaders say their organisation relies more heavily on talent data to make decisions compared to four years ago. However, 71 per cent agree that current team structures and capabilities limit their ability to use these insights effectively.

To be successful, HR leaders need to focus on developing the skills of their HR team members to help them become:

1. Analytics experts who manage and prepare the data to produce insights 
2. Decision enablers who interpret the information and apply learnings
3. Strategic consultants who influence broader business priorities as tactical communicators.

Doing so will enable talent analytics to influence HR’s biggest functional decisions and act as a central driver of innovation throughout the organisation by providing objective and timely advice.

Building a culture of analytical learning

Skilled talent analytics experts play a crucial role within any organisation. They are responsible for maintaining data, effectively analysing it and supporting an integrated approach to workforce planning and risk management, among other strategic activities. 

To develop analytics experts, HR leaders must build a culture of technical learning within their team. This can be achieved by fostering collaboration between those responsible for talent analytics and the learning and development (L&D) team. 

This will help HR leaders identify technical skills gaps within the team and create learning pathways that ensure employees stay ahead of new methods and technologies. 

Rotational programs with IT or data and analytics functions can also be introduced to bolster technical skills and knowledge. 

“Traditional earning mechanisms won’t be enough. A core competency that drives effective decision enablement is the business acumen that can only be gained through experience.”

Using data-driven HR to develop strong decision makers

Gartner research reveals only nine per cent of HR leaders feel their department has been truly successful at arming their team with data to enable them to support workforce-related business decisions. 

Given that talent processes can be disrupted by external changes and technology, HR decision-makers need uninterrupted access to relevant data to gain a deep understanding of HR’s priorities and activities. 

The L&D function can also be an invaluable partner here by facilitating regular knowledge exchanges on priorities, emerging trends and insights between talent analytics experts and HR leaders. 

However, traditional learning mechanisms won’t be enough. A core competency that drives effective decision enablement is the business acumen that can only be gained through experience.

Developing true business acumen and the underlying competencies of industry, organisational and financial knowledge is best achieved through a combination of classic development activities combined with high-impact, hands-on learning moments.

For example, providing HR team members with the opportunity to work in cross-functional teams to lead change initiatives, build and execute business cases or play a significant role in delivering a solution can transform by-the-book thinkers into strategic problem solvers and innovators.

From tactical directives that respond to changing business conditions to supporting the entire employee life cycle, this approach ensures leaders can make data-driven talent decisions with confidence.  

Becoming a strategic partner

Executives and business leaders often face many competing priorities, particularly when managing the interests of shareholders, internal stakeholders and customers. As a result, HR leaders can struggle to effectively influence their decision making, even when equipped with data or insights.

According to a Gartner survey, 81 per cent of talent analytics leaders state that it’s important for their team to be proficient in strategic consulting. However, less than half (47 per cent) are currently satisfied with their team’s proficiency.

Rather than focusing on relationship management approaches designed to drive stakeholder satisfaction, strategic consultants should build and hone skills such as persuasion and storytelling with data, which can empower HR to be more effective in their dealings with stakeholders. 

To do this, consultants need to develop a deeper understanding of their business stakeholders’ needs and drivers, along with demonstrating the impact of their interactions. 

Feedback from business stakeholders and measures of consultants’ performance should go beyond the basics of capturing face-to-face time to collect real evidence of when HR insights have resulted in action.

Similarly to decision enablers, strategic consultants benefit from connecting with other department leads or C-suite members, fostering partnerships between talent analytics and other functions. Creating these relationships allows for the sharing of best practices and can help inform talent analytics teams about which HR technologies (e.g., data visualisation tools) are the most effective for sharing insights with stakeholders.

HR leaders who can implement these steps will be well-placed to grow their talent analytics function, increase their credibility, influence innovation and drive critical business decisions. 

Robin Boomer is a Senior Director, Advisory in Gartner’s HR Practice. He provides strategic advice and insights to support HR leaders and strategic workforce planning teams.

Understand the principles of data-driven decision making and learn to apply a data-driven mindset to HR strategies and challenges with AHRI’s foundational short course in People Analytics. Take the advanced course to elevate your workforce data management and analytical skills in a business context.

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