Strengthening the HR Analytics approach, between challenges and opportunities

HR Analytics (also referred to more broadly as People Analytics) is an approach grounded in the systematic use of data and statistical analysis to support both strategic and operational decision-making in human resources.

It goes beyond the mere collection of HR data (such as attendance, turnover, training, etc.) by integrating, interpreting, and correlating these data with business data to generate insights that can improve both individual and organizational performance.

Why It Matters, Now and in the Future

When properly implemented, HR Analytics brings a range of benefits:

• It enables more objective, informed decisions, reducing reliance on intuition or opinion and increasing the effectiveness of HR choices.
• It helps uncover the root causes behind key organizational phenomena such as turnover or employee motivation.
• It identifies high-potential areas and those in need of development, contributing to more effective resource allocation.
• It links people’s data with business outcomes, enabling the HR function to demonstrate its tangible impact on productivity, sales, innovation, and other key metrics.

In today’s environment, where budgets must be justified and decisions must be measurable, HR Analytics enables HR teams to demonstrate the ROI of their initiatives—from training and well-being programs to talent development strategies.

As the world of work grows more volatile and complex (with the rise of new technologies, hybrid work models, skill gaps, and generational shifts), HR Analytics is becoming an essential tool for navigating change, anticipating trends, and responding quickly and precisely. Those who can integrate HR data with business metrics such as performance, innovation, and sales will play a critical role in shaping corporate strategy. Moreover, a data-driven approach enables tailored people management by identifying training needs, growth potential, engagement levels, and leadership styles with precision.

Challenges and Considerations

Despite its many advantages, adopting an HR Analytics approach also presents significant challenges:

• Ensuring data quality and integration: HR data is often scattered across systems, inconsistent, or incomplete.
• Building analytical skills within HR: Knowledge of statistics, data visualization, data storytelling, and technical tools is becoming essential for today’s HR professionals.
• Embracing an evidence-based culture: Organizations must move beyond traditional practices and intuition-based decisions.
• Addressing privacy and transparency: Ethical data use is crucial, especially in sensitive areas such as performance evaluation.

These challenges, however, are surmountable—and overcoming them can elevate HR into a true strategic partner for the business.

Case Study: Building HR Analytics Capability in the Utilities Sector

We supported a major utility company in developing its HR Analytics capability. A dedicated internal team had already been established within HR to leverage data and inform decisions that impact both people and the business. Despite strong individual expertise and clear focus, the team was facing several challenges:

• Excessive time spent on data crunching instead of analysis due to limited automation and heterogeneous data sources.
• A weak “data culture” within the HR department impacts both data quality and the ability to communicate value to the business.
• A lack of structured methodology for applying HR Analytics, both in terms of business alignment and resource allocation.

Project Structure

Our intervention consisted of two parallel streams: specialist support and targeted training, aimed at closing capability and mindset gaps.

Specialist Support This stream had several key objectives:

• Map the current state of HR Analytics in the organization and identify key pain points.
• Align with business leaders to gather needs, expectations, and priorities.
• Define actions for implementing a systemic and integrated HR Analytics approach.

Training

The training component aimed to:

• Create shared awareness across the HR function on the value and fundamentals of HR Analytics.
• Build deep analytical competencies within the HR team members responsible for interpreting data and presenting insights to the business.

Specialist Support: Phases and Activities

The support stream unfolded across four phases:

1. AS IS Analysis and Pain Points An initial workshop with the HR project team mapped the current status of HR Analytics and addressed key questions around:

• Data sources, data quality, types of analyses and reports, frequency, audiences, formats, and feedback mechanisms.
• Time spent on data gathering, cleaning, normalization, analysis, and presentation.
• Perceived efficiency, effectiveness, and existing pain points.

2. Business Listening Sessions Focus groups were conducted with mid-level and senior managers to gather business needs and expectations regarding HR Analytics.

3. Co-Designing the TO BE Model A workshop involving the project team and selected business representatives was held to co-design the future model (“TO BE”). This included both HR reporting and dashboard capabilities, as well as predictive decision-making analytics.

4. Gap Analysis and Implementation Plan The final step brought together the HR project team to identify key gaps between the current and desired states and define a clear, prioritized action plan to close them.

Training: Phases and Content

The training program was delivered through five webinars, each lasting three hours. The first module targeted the entire HR function, while the subsequent four focused on the professionals responsible for conducting HR analysis and translating insights into business action.

A pre-work activity was included to assess participants’ baseline knowledge and close potential learning gaps. Between each session, participants completed supervised homework assignments.

The five training modules were:

• Awareness – HR Analytics Fundamentals: An introductory session to raise awareness and highlight the role each HR team member plays in data generation and management.
• The Art of Asking Questions: A module focused on helping analysts formulate meaningful questions and explore data through “what if” scenarios.
• Data Preparation and Types of Analysis: This session explored the relationship between the types of questions posed and the corresponding data structure required. It also addressed data cleaning, normalization, integration, and the selection of appropriate analytical techniques.
• Data Storytelling and Visualisation: Participants learned how to present data and insights effectively, with a focus on tailoring narratives to their target audience and supporting informed decision-making.
• Automation and BI Tools: The final module explored Business Intelligence solutions and automation opportunities (even using tools like Excel), enabling participants to streamline data generation and reporting workflows.

Results and Impact

The project provided the client with new tools and renewed confidence in the potential of HR Analytics. It positioned the HR function as a strategic partner in business decision-making, enabled the achievement of analytics goals, and significantly enhanced HR’s credibility across the organization.