Democratizing People Data: How Generative AI Fuels Smarter HR Decisions

Maximizing the power of data in talent management

We’re all familiar with the saying, “Trust your gut.” It’s the advice offered when deciding which college to attend, which city to move to, and sometimes even which employee to promote.

There’s no question that intuition can be valuable for HR and talent management teams, but what happens when it’s the only decision-making input? Can reliance on gut instinct alone lead to underperformers being recognized and overperformers being pushed to the sidelines? Can it grow your team too fast or cause you to miss out on the perfect hire? Even worse, can it perpetuate structural bias?

There’s no easy answer to these questions. However, managers need greater visibility into their organization’s people data to make decisions with greater confidence. And they need access to these insights without unnecessary delays or system errors. 

Until recently, this was a pipe dream. But with the power of AI, HR leaders now have new possibilities for democratizing people data throughout the organization. 

Your Gut is a Useful Guide, Not the Final Arbiter

While most HR teams are already investing in advanced HR and people analytics software, according to recent Visier research, nearly half (47%) of managers still say they rely primarily on their instincts when making decisions. Why the discrepancy?

In short, managers lack access to the right data. They may have access to qualitative performance data, but not specific insights related to how their team is contributing to business or financial goals. Without these insights, they’re essentially flying in the dark. 

And even the data that managers do have access to is only so useful. After waiting for HR to sift through their request, a manager may receive metrics that don’t tell a complete story. They have no context behind the figures and no idea how to incorporate them into their decision-making process. Often, the whole thing just seems like more trouble than it’s worth, and people managers resort to the old reliable gut feeling. 

However, it’s worth considering what goes into a gut feeling. In a professional context, a gut feeling is a mirror. It reflects how talent decisions have been made in the past, which employees have risen through the ranks, and which have been left on the outside looking in. From a DEI perspective, this reliance on tradition has the potential to reinforce harmful hierarchies and biases. Without clear insight into DEI metrics, for instance, a manager’s gut feeling may be run through the filter of their unconscious biases, which can perpetuate inequality. 

This isn’t to say we should discard our gut feelings entirely. But with new data capabilities readily available, it would be a mistake to rely solely on our intuition. And most managers are on board: 96% agree that improved access to people-related data would help them make people-related decisions with more confidence. Clearly, the demand is there. It’s just a matter of figuring out how to execute. 

Using Generative AI to Democratize People Data and Decision-Making

This all begs the question: What does a data-driven approach to people decision-making look like?

For one, it starts by recognizing that your managers aren’t data scientists. They don’t have the time or the expertise to do the heavy lifting of data analysis. As such, your people data should be immediately accessible, actionable, and easy to digest. 

This is easier said than done, though, as your HR team likely lacks the bandwidth to fulfill complex data requests in a timely fashion. When data isn’t easily democratized and accessible, that’s exactly when the “gut” takes over. In an age of labor shortages, declining employee engagement, and hiring challenges, it’s clear that your HR team (and many others) need help. 

Consider generative AI. Sixty-four percent of people managers are already using generative AI tools in some capacity, but these are often external tools that don’t connect directly back to company data. Imagine being able to query an internal chatbot for productivity insights on a specific employee. Or discover how a specific employee’s performance correlates with their compensation. 

People managers at Unisys, a global technology solutions company, are reaping the benefits of an internal generative AI tool. This tool helps democratize information access throughout the entire organization, putting the power of data in the hands of those who need it most. At the drop of a hat, managers can review key people metrics around absenteeism, time spent on learning, turnover, vacation taken, or employee engagement scores. Easy access to employee inputs empowers them to make more informed decisions regarding hiring, compensation, and coaching. 

By and large, managers are ready to embrace these capabilities: 87% say that they’re excited about the potential of generative AI tools to improve their role as people managers, and nearly one-third (30%) would use these tools daily. As generative AI capabilities continue to expand, HR teams that buy into the technology will put their managers in a better position to succeed. 

People Data: The GPS for Managers

Making talent decisions without accurate and accessible people data is much like navigating without a GPS. Sure, some drivers may be better at it than others, but sometimes you’re going to end up in a cul-de-sac you hadn’t planned on being in. 

More equitable access to people data — powered by generative AI solutions — helps make the journey to your destination much easier. It’s the key to democratizing your data and empowering your managers to make smarter talent decisions that serve the business. In the years to come, the ability to tie advances in generative AI back to tangible business and people metrics will be a key indicator of manager and employee satisfaction.

Andrea Derler, Principal of Research and Value at Visier, works closely with data scientists, people analytics experts, and HR professionals to deliver data-driven, practical insights for organizations.