Huge rise in HR data decision making, second only to finance

HR departments are jostling with their Finance counterparts at the head of the race towards data-driven business decision making. New research by data-science consultancy Peak Indicators suggests that 61% of HR departments use data in most decisions. They are second only to Finance teams (67%), and far ahead of the least data-driven department – Sales (39%).

HR departments are jostling with their Finance counterparts at the head of the race towards data-driven business decision making. New research* suggests that 61% of HR departments use data in most decisions. They are second only to Finance teams (67%), and far ahead of the least data-driven department – Sales (39%).

However, almost four in ten HR teams still rely mainly on gut feeling and intuition in decision making, and only just over a quarter are analysing their numbers with the most up-to-date and productive data science. A fifth (20%) use algorithms while only 7% have started to use machine learning techniques to get the full value from their data in decision making. 

The research is detailed in its new ‘Data Science in HR’ report, which includes insight from a study of 500 leaders at UK based organisations and advises how HR departments can improve their efficiency and performance by becoming more data-driven.

The report reveals that HR leads in the systematic collection of data. 94% of HR directors told researchers that their departments have processes allowing data to be gathered consistently over time, with more than half (55%) using specialist HR databases and applications for the job. This puts them in a strong position to adopt more advanced techniques to get full value from its data.

The study also suggests that HR departments still rely heavily on humans to interpret data. 38% do not use analytics, and just 7% are at the leading edge of data science – using advanced analytics and AI to predict future trends and make decisions accordingly. 

Antony Heljula, Technical Director at Peak Indicators, comments: “The good news is that HR departments are ahead of the pack when it comes to using data to inform decisions. These leaders are laying a strong foundation on which they can improve their analytical capability and insight for a wide range of decisions – across pay reviews, retention, recruitment and staff development.”

“To get there, we need to see less focus on the human interpretation of data and a greater emphasis on data science. HR departments are already collecting good data, and collating it cleanly in databases. This means they’re in an excellent position to use AI technologies that can analyse data and guide decision-making – making sure the best decisions are made every time.”

*Peak Indicators

    Read more

    Latest News

    Read More

    The evolving leadership persona

    6 December 2024

    Newsletter

    Receive the latest HR news and strategic content

    Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

    Latest HR Jobs

    University of Glasgow – Estates DirectorateSalary: £40,247 to £45,163 per annum. UofG Grade 7

    HR M&A Expertise: Extensive experience having led 10+ mergers and acquisitions within or for a global organization, focusing on HR due diligence and integration planning.

    Job Details: HR Director – Mergers & Acquisitions. Join Sage as our Director of HR – Mergers & Acquisitions, a high-visibility role where you’ll lead

    Join Sage as our Director of HR – Mergers & Acquisitions, a high-visibility role where you’ll lead M&A efforts for the People Function—from due diligence

    Read the latest digital issue of theHRDIRECTOR for FREE

    Read the latest digital issue of theHRDIRECTOR for FREE