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Career pathsAutomationCareers in HRLatest NewsHR strategy

People analytics is HR’s biggest skills gap, finds report

by Ashleigh Webber 4 Apr 2023
by Ashleigh Webber 4 Apr 2023 The report said the ability to make data-led decisions will become more important for HR
Image: Shutterstock
The report said the ability to make data-led decisions will become more important for HR
Image: Shutterstock

Nearly eight in 10 (78%) HR professionals see artificial intelligence (AI) and people metrics as central to the future of HR but many have significant skills gaps in this area, research has found.

The biggest gap in the skillsets of HR professionals at all levels is people analytics and data analysis, according to the 2023 HR Insights report from HR recruitment consultancy Macmillan Davies. This was followed by digital adoption and technology skills.

The report said that HR teams needed to build skills and invest in technology to make data-led decisions, which would “only become more important for HR to be able to demonstrate ROI on initiatives to prove its commerciality”.

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Macmillan Davies’ managing director Darren Hayman said: “In recent years, the HR function has strengthened and reinforced its importance.

“To be able to continue to make a strategic contribution to the business alongside offering valuable insights, it is clear it’s essential for HR skills and actions to focus on embracing technological developments, with workforce data and analytics especially critical.

“To adapt to the future needs of our customers and people, businesses need a strong focus on the future of work, change management, data and analytics.

“However, work needs to be done to support HR professionals to develop and improve their technology skills, so that businesses can take full advantage of the understandings possible from people analytics and data analysis. These can help reduce human bias, improve efficiency, increase predictive data decision-making, drive results, as well as being a tactical and strategic asset to allow more ‘people time’ for HR.”

The report, which was based on a survey of 5,000 HR professionals, also found only a third felt more valued post-Covid, despite the pivotal role the function played in supporting organisations and employees through lockdowns.

Only 41% were satisfied with their remuneration. Fifty-nine per cent received a pay increase at their last pay review, but this fell to just 27% in the retail and consumer sector. By contrast, 100% of respondents in legal, FMCG, transport and logistics, and insurance received a pay rise.

Increased remuneration (61%) was HR professionals’ top consideration when looking at switching jobs, followed by career progression (53%), workplace culture (44%), and a better work-life balance (42%).

The ability to work a four-day week would appeal to 41% of HR specialists when considering a job move.

Asked what they valued in their current roles, a positive and dynamic company and HR team culture was seen as a critical reason for remaining in their current position.

The report also addressed the myth that people only work in HR as a “stop-gap”, or to use it as a stepping stone into a top leadership position. Only 17% saw an HR career as having a clear route to becoming CEO or managing director, while the majority had been in HR for more than a decade. Some had remained in interim HR roles for eight years, the survey found.

Hayman said: “HR professionals have a high number of projects on which to deliver, but don’t always have the time or internal expertise for them. This is where interims are the perfect solution. They have the capability to parachute into an organisation and deliver solely on these specific projects.

“This is why there is a need for mindsets to shift from a traditional role / job-based approach to structuring people, to a more skills- and capabilities-based approach in order to create fluid, lateral role changes, particularly for internal mobility and career enhancement.”

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Two-thirds of survey respondents were in large organisations (over 250 employees) and 70% were at business partner level or above.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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