Next generation of HR leaders require human and data intelligence for decision making

Gone are the days when HR departments can succeed without considering data when making decisions. As work becomes more complex, spurred further by the influx of artificial intelligence (AI) and generative AI (gen AI), the need to understand and incorporate data in HR has never been greater. Human driven decisions will always be important to human resources leaders – it is in the name after all – but the use of data to help with decisions separates great from good HR leaders.

This is something I learned early on in my career. Nothing is more important for businesses than evidence-based and data driven decision making – even in HR. Historically, HR data was viewed as more qualitative than quantitative, and therefore investment in data analytics for these departments lacked. As HR joined the C-Suite and talent enablement became a key strategic priority for executive leaders, HR data and analytics have become an integral part of what metrics we consider for business success.

But not all HR departments are created equally. When we stop siloing data and instead weave it into HR leaders’ decision-making processes, the entire organization is better for it. Three areas that benefit most come to mind:

• Talent acquisition – Data can change how and what we look for in talent recruitment. For instance, data lets us better understand the life cycle of an employee application, role, and function so we can better plan future recruitment. This includes enabling more accurate expectation setting for the business, as well as showing us where best to allocate our time. Through data intelligence, we can better understand that low competition or skills shortages may be the cause of why that job application has sat open for weeks or months.
• Total rewards – Through data analytics, HR leaders can monitor behavior during compensation planning and benefits reviews which helps ensure planning is both fully inclusive and without bias.
• Performance – It’s equally important to understand what your organization is excelling at as it is where the gaps are. However, this is impossible without proper data analytics. Data takes the guessing game out of performance measurement, allowing us to ensure we are making the best use of talent’s time.

But data alone isn’t enough. AI and gen AI tools can support next gen HR leader efforts. Where some organizations are barring its use entirely – which we do not view as the appropriate approach – HR should have an opinion, grounded in policies and guidelines, around how and where the technology should be implemented. While a “one size fits all” attitude won’t suffice, after careful consideration and risk assessment, HR leaders should look for opportunities to involve AI in their day-to-day use.

Gen AI, specifically, is augmenting numerous traditional practices, including where and how we spend our time. Job descriptions are a great example. Often seen as difficult to compile and tedious for HR and managers to maintain, now with a few prompts, gen AI can write job descriptions in less than a minute, often needing only minor tweaks to be posted. With time back, HR can focus on the human element of the job like culture and wellbeing of employees.

Beyond the impact on writing, gen AI can accurately analyze qualitative data sources. Envision prompting gen AI to analyze your organization’s performance reviews and then share back where there are strengths and opportunities to fill in talent and skills gaps in the organization.

Gen AI tools are still not 100% accurate, but they can provide a great starting point for many projects. No matter the tools at our disposal, and whatever may come next, never forget the human in the data. Data can do a lot to show the facts, including trends, the current state of the business and an analysis of what the future may hold. However, the most crucial element of the data is the story it tells and the people behind it. You cannot rely on AI and gen AI to tell your organization’s story; it does, and should, take a human to interpret information and then make decisions to drive the company in the right direction.

Read more: Bringing AI to work? Better have policies in place

The merging of data and human intelligence in HR will be a necessary driver of success for organizations as the influx of new technologies and tools like gen AI influences how we work. While human driven decisions will always be paramount in HR, it will be important to understand the benefits data can bring to the organization to remain competitive. When utilized ethically and securely, AI can help understand the gaps in your organization’s skills or talent. The likes of AI will massively expand our abilities to analyze and interpret data, but we are still at the beginning of learning its capabilities and the best ways to use it. However, no matter what support tools like gen AI may offer, it’s how humans interpret data to make decisions that really drives a business forward.

Ciara Harrington, chief people officer, Skillsoft