Why is Role-modelling by the CHRO and HRLT Essential for Building Data Literacy in HR?
Human resources, as a function, must adapt rapidly to stay relevant as a strategic partner to the business. Insight222’s latest research, Upskilling the HR Profession: Building Data Literacy at Scale, reveals insights and recommendations for designing and implementing an effective and long-lasting data literacy upskilling programme for HR.
In today’s fast-changing business landscape and with rapidly evolving technological advances, the importance of being proficient in data literacy – in general, and in human resources in particular – has become more critical than ever. According to a recent study by Qlik, across the business world, data literacy is set to be the most in-demand skill by 2030, with 85% of C-suite executives believing that being data-literate will be as vital in the future as the ability to use a computer is today.
What is Data Literacy?
Data literacy for HR professionals is defined as the ability to interpret insights from data and use them to inform decisions that create value in their everyday roles.
Data Literacy is a Strategic Priority for CHROs
Our research confirms that scaling data literacy is a strategic priority for the chief human resources officer (CHRO), with 88% of companies who responded to our survey confirming that the CHRO has emphasised people data and analytics as an essential component of the HR strategy in their company.
While nearly all CHROs have made it clear that data and analytics are an essential part of the HR strategy, this commitment alone is not enough to effect change at scale.
Why is Role-modelling by the CHRO and HR Leadership Team (HRLT) Essential?
Leaders are responsible for establishing data literacy in their organisations. For HR, key steps include making the people analytics leader responsible for delivering a data literacy upskilling programme, defining the data-led consulting skills that are needed to be taught, and making a sufficient investment in a multi-year learning program, with a focus on application and not just theory.
Role modelling by CHRO and the HRLT is also essential. Our research shows that when both the CHRO and their direct reports role-model the use of people data and analytics, HR practitioners:
Actively develop their data literacy skills in 70% of companies. However, when neither the CHRO nor the HRLT is perceived to role-model people data and analytics, this drops to 39% of companies.
Use people data and analytics insights in their day-to-day jobs in 79% of companies. However, when neither the CHRO nor the HRLT are perceived to role-model people data and analytics, HR practitioner usage drops to 22% of companies.
If HR professionals experience the CHRO and the HRLT repeatedly working with data and endorsing its importance, they are more likely to recognise that this is an important investment of their time, and embrace the change needed to overcome any resistance they may have. It is important for the HRLT to give them “permission” to prioritise this and allocate time to training and upskilling.
Our research confirms that when both the CHRO and the HRLT role-model the use of people data and analytics, this impacts the likelihood of HR practitioners actively developing their skills, and the likelihood of them using people data and analytics insights in their day-to-day jobs.
Quote: Steve Scott (Managing Director, Global Head People Insight and Analytics, Standard Chartered)
One leader who recognises the importance of this is Steve Scott, Managing Director, Global Head, People Insight and Analytics at Standard Charted. In an episode of the Digital HR Leaders podcast, Steve describes the “triumvirate” between the CHRO, the HRLT and the people analytics function that needs to be in place to reach throughout the whole HR team in order to build data literacy. “If you get that breadth and that depth, then you are firing on all cylinders.”
Building Data Literacy: The Crucial Role of CHRO and HRLT in HR's Data Transformation
CHRO and HRLT role-modelling of people data and analytics is paramount for the improvement of data literacy across the HR function overall.
Our research provides evidence that in companies where the CHRO and their leadership team are active in role-modelling the use of people data and analytics, the development and application of these skills across HR are more commonplace. With many competing demands on their time, HR practitioners need to consistently experience – from the top of the organisation down – that understanding and working with data is a priority for them to have business impact in their everyday roles.
To find out more about Insight222’s recommendations for building data literacy in HR – including the importance of making the people analytics leader responsible, investing sufficiently in a programme of upskilling and training HR professionals in the right skills – download the Insight222 Upskilling the HR Profession: Building Data Literacy at Scale report.
ABOUT THE AUTHOR
Naomi Verghese
Naomi is an experienced business professional with over 15 years’ experience, mainly in the financial services industry. She has undertaken roles as a HR business partner, HR chief of staff and as a commercial banker during her time at Barclays Bank. In the last six years Naomi has dedicated her career to people analytics, with particular expertise in consulting with business executives, HR leaders and other stakeholders. Naomi took a career break in the mid 2010s to travel around South America to learn Spanish and immerse herself in the Latin American culture. In her spare time, she loves to watch professional athletics, having once been a junior national athlete herself. She currently lives in the UK.
If you’d like to connect with Naomi, please visit her LinkedIn profile here.
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At Insight222, we partner with our clients to ensure their people analytics efforts are calibrated with stakeholder needs and help them develop an effective roadmap for success. We partner with you to build a clear picture of what your business leaders value about people analytics and then help you understand how to reach their aspirations. The outcome is a roadmap with prioritised activities to combine quick-wins and long-term success. This, typically 16-20 weeks in duration, is a perfect way to immerse your team in leading people analytics practices. Contact us today to find out more and being your journey to transform your people analytics function!