Strategic HR In The Digital Era: Harnessing The Power Of Data And GenAI

How HR leaders can thrive in the data-driven era

The era where HR departments could thrive without incorporating data into their decision-making processes is long past. The landscape of work is becoming increasingly intricate, only accelerated by the rise of artificial intelligence (AI) and generative AI (genAI).

Consequently, the importance of understanding and integrating data into HR has surged.
 

Despite the impact data analytics and tools like genAI may have on our industry, human-driven decisions will always be important for HR. However, the ability to utilize data to guide decisions is what sets exceptional HR leaders apart from their counterparts.

I learned this crucial lesson early in my career: nothing trumps the importance of evidence-based and data-driven decisions in business – even in HR. In the past, HR data was often seen as more qualitative than quantitative, leading to a shortfall in investment for data analytics within our department. But as HR joins the C-Suite and talent enablement is prioritized (and seen as a pivotal strategy for executives), HR data and analytics have evolved into a core part of the metrics driving business success.  

However, not every HR department may be as willing or ready to embrace modern technologies or data analytic practices. Instead of creating data silos, we can amplify the power of HR by integrating data analytics into HR decision-making processes. A few areas come to mind:

• Talent Acquisition – Data can revolutionize recruitment strategies by offering insights into the life cycle of employee roles and applications. With data intelligence, we can pinpoint the reasons behind recruitment inefficiencies, such as low competition or skills shortages. Empowered by data, HR leaders can plan future recruitment with increased accuracy and foresight.


• Talent Optimization – Paired with data, HR can assess where competency is lacking and set data-driven training strategies to fill those gaps. Through data, HR can match skills with roles to ensure employees are in the best roles and deliver the most possible value for the business.


• Total Rewards - Data analytics can enhance compensation planning and benefit reviews by tracking behavioral patterns, ensuring inclusivity, and eliminating bias.


• Performance - Understanding both the strengths and weaknesses of your organization is critical. Data analytics removes the guesswork from performance evaluation, leading to more effective use of talent.

Data alone isn't sufficient. AI and gen AI tools can bolster the efforts of next-gen HR leaders. But like technologies before it, there may be pushback in your organization about its use. Some may be in opposition and even restrict AI in HR, but blocking its use may do more harm than good. HR leaders cannot weave AI into their work without first applying careful consideration and comprehensive risk assessment to identify opportunities where the technology can be brought into their daily operations.

With proper AI policies, training, governance and guardrails, HR leaders can see higher productivity and more opportunities for decisions powered by data analytics.

GenAI is transforming where and how we spend time on common practices, including job descriptions. Typically seen as a time-consuming task for HR professionals, genAI can help in drafting and compiling job descriptions in mere minutes with only a few prompts (and minor edits before publishing.)

In the meantime, HR leaders can redirect their focus onto aspects paramount to their role, such as nurturing company culture and ensuring employee wellbeing. GenAI is not only supporting more efficient work but also helping to emphasize the 'human' in human resources.

Beyond its impact on writing, genAI can accurately analyze qualitative data sources. Imagine prompting genAI to examine your organization's performance reviews and then report back on the strengths and areas where there are opportunities to address talent and skills gaps. While genAI tools are still in their infancy, they offer a tremendous starting point for HR leaders to implement data analytics into decision-making.

HR leaders would be remiss to depend solely on AI and genAI to help tell that story. It is essential to always remember the human element in data. The human touch is necessary for interpreting information, making informed choices, and steering the company toward success.

The blend of data and human intellect in HR is becoming increasingly vital for an organization's success, particularly as a wave of recent technologies and tools, such as genAI, revolutionize how we work. While human decisions will always be important in HR, recognizing the competitive edge data can offer is equally crucial.

When used responsibly and safely, AI can reveal potential deficiencies in your organization's skill sets or talent pool. Still, we are just at the beginning of understanding where, when and how we can use AI to help make data decisions. Ultimately, no matter what support tools like genAI may offer, how humans interpret data to make decisions will make the difference.

Author Bio

Ciara Harrington is Chief People Officer at Skillsoft.