Over the last five years, the role of HR professionals has undergone a profound transformation, bringing this function out of its former “silo” and placing it at the forefront of the successive changes that work teams have faced in this five-year period: from a pandemic to the emergence of AI, to the widespread adoption of the hybrid model.

So, HR is no longer limited to hiring, firing, and conducting annual evaluations. The radical change in this function is driven by data (and by the ability of these professionals to understand and use it).

Failure to take up this challenge would leave many behind, because as organisations adopt a more analytical mindset, people analytics demands faster and more strategic decision-making.

With the right tools and knowledge, HR professionals can turn raw data into workforce intelligence that influences everything from talent strategy to employee well-being.

Why HR needs better tech and analytics?

Imagine trying to conduct an orchestra where each musician is playing a different score. That's what HR looks like when data is scattered across disconnected systems.

Consolidating HR technology brings everything into harmony. It enables a seamless flow of data between hiring, payroll, performance management, and employee engagement, giving HR professionals a complete view of their workforce.

According to an article published in The Guardian, Grace Hannah Orr, Head of Human Resources at Communicorp UK, saw the time spent on payroll processing reduced from two days to just one hour per month after switching to Employment Hero, allowing her team to engage more meaningfully with staff. 

Data in action

Workday has gone one step further by integrating AI-based solutions. This talent coordination platform has caused a stir by increasing recruiters' capacity by 25% and speeding up hiring manager reviews by 34%, according to Lifewire (2024). It achieves this through intelligent candidate screening, talent rediscovery, and automation of repetitive screening tasks.

The AI-integrated solutions have algorithms that are designed with responsible AI principles in mind, ignoring factors such as gender or address and focusing solely on criteria relevant to the role.

By integrating AI directly into its human capital management system, it offers intelligent profiles, AI-assisted scoring, and proactive alerts on candidates, putting data-driven hiring at the forefront.

Essential skills for the modern HR professional

But all the technology in the world is only as good as the skills needed to use it. To truly harness the power of people analytics, HR professionals must develop their skills. Here's what it takes to thrive:

1. Data literacy and analytical thinking

Data is only as powerful as your ability to interpret it. HR leaders must be comfortable navigating dashboards, understanding statistical trends, and applying insights to real HR problems. Whether it's analyzing turnover rates or forecasting future hiring needs, data literacy is now an integral part of the HR toolkit.

As Ben Thompson, CEO and founder of Employment Hero, says: “In an increasingly complex HR landscape, data has become essential for strategic and informed decision-making. It's no longer enough to rely solely on intuition; HR teams need clear, data-backed insights to drive meaningful results that contribute to the growth of their teams”.

2. Technical competence with HR analytics tools and information systems.

Today's HR professionals must be experts in the use of human resource information systems (HRIS) such as Workday, SAP SuccessFactors, or Oracle HCM. These systems offer centralized management of employee data and are essential for automating and optimizing HR operations.

In addition, platforms such as Microsoft Power BI and Qlik help transform this data into visually appealing dashboards and reports. These tools enable advanced analytics, predictive modeling, and easy sharing of information across the enterprise. They are no longer just for data scientists, but for all HR teams who want to work smarter.

3. Business acumen

It is no longer enough for HR to master “people” issues alone. It is essential to understand the factors that drive the business, such as revenue, margins, and market competition. HR analytics must be aligned with strategic objectives, whether it is entering a new market, managing costs, or developing future leaders.

4. Ethical data management

Important data comes with great responsibility. HR teams handle some of the most sensitive information in any organization. It is essential to ensure GDPR compliance, respect confidentiality, and implement robust data governance practices. Improper ethical handling can erode employee trust and land the company in legal trouble.

5. Data communication and storytelling

Raw data does not convince management. The ability to synthesize complex information into compelling stories is what makes people analytics have a real impact. Whether through visual dashboards or executive summaries, HR professionals must present insights in a way that resonates with stakeholders and drives action.

6. Continuous learning and adaptability

The HR technology landscape is evolving at a rapid pace. What is cutting edge today may be obsolete tomorrow. Staying curious, attending industry events, enrolling in online courses, and experimenting with new tools are all ways to keep your skills current and relevant.

In conclusion, when HR embraces data, it shifts from reactive to proactive, from putting out fires to preparing for the future. The convergence of analytics and human resources is not just a passing trend, but a fundamental shift in how value is created within organisations.

While HR tech platforms demonstrate what’s possible when technology and HR work together, the real impact emerges when HR professionals themselves step into the role of data-driven strategists.