People Analytics 101 Part 2: The Analytics Gap and Storytelling with HR Data

People analytics has the biggest gap between importance and readiness of any HR challenge. Here is why HR is grappling with the data problem - and how to tell stories that drive action.

TL;DR: The analytics gap in HR exists because traditional HR skills do not always align with data analysis needs. However, the biggest challenge and opportunity for HR is asking the right questions of the data, not just technical analysis. By focusing on insightful questions and telling compelling stories with HR data, HR leaders can drive strategic action and secure their place at the leadership table.

Deloitte's Global Human Capital Trends research found that while 71% of companies see people analytics as a high priority, only 9% believe they have a good understanding of which talent dimensions drive performance in their organisation. (Deloitte)

This article continues the discussion from People Analytics 101 Part 1: An Introduction to People Data.

Research from Bersin by Deloitte, based on over 7,000 responses from global HR practitioners, shows that people analytics has the biggest gap between importance and readiness of any HR challenge - a 32-point difference. This is the first time people analytics has made it onto the list, and the bottom five issues are all influenced by a shift to a digital, data economy and its impact on HR.

| Metric | Value | Source | | Gap between importance and readiness for people analytics | 32pt | Bersin by Deloitte | | Global HR practitioners surveyed | 7,000+ | Bersin by Deloitte | | Biggest readiness gap of any HR challenge | #1 | Bersin by Deloitte |

Why does the analytics gap exist?

More companies are going digital and it is increasingly important that HR understands how they should be supporting this process. Although analytics can require some very complex and different skills to those that HR practitioners traditionally have, a lot of the heavy lifting can be done with programmes that make the task easier, or with temporary specialist input from within your own business intelligence team or from outside the business.

The real challenge with analytics - and the part of it that HR can excel at - is asking the right questions of the data. This does not require technical skills, but it does require some critical and creative thinking.

What questions should we ask of the data?

The most important skill in people analytics is not statistical analysis - it is knowing what to ask. Start with the questions your business leaders are already asking: Who are our highest performers? Where are our succession gaps? What is driving attrition in our top talent? Which roles have the highest impact on business outcomes?

Then go further. The greatest value in people analytics is created by giving the business questions they have not thought to ask - questions that reveal patterns, predict risks, and surface opportunities that would otherwise remain hidden.

How can HR tell stories with data?

HR stories are no different from any other kind of story. They should stimulate discussion, offer insights that surprise, and keep people interested in what is happening - but more importantly, what will happen in the future.

A good HR data story does not just report what happened. It explains why it happened, what it means for the business, and what should be done about it. When HR can tell that kind of story - backed by data - they earn a permanent seat at the strategic table.

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Frequently Asked Questions

Why is there a significant gap between the importance and readiness of people analytics in HR?

The gap exists because while HR leaders recognise the strategic value of people analytics, many lack the specialized skills or tools to effectively implement it. The shift to a digital, data-driven economy demands new capabilities from HR, creating a readiness challenge that often requires critical and creative thinking rather than just technical expertise.

What is the most important skill for HR leaders in people analytics?

The most important skill for HR leaders in people analytics is knowing what questions to ask of the data. This involves critical and creative thinking to identify business challenges and opportunities. While technical skills are helpful, the ability to formulate insightful questions that reveal patterns and predict risks is paramount for driving strategic value.

How can HR effectively tell stories using HR data?

Effective HR data storytelling goes beyond reporting facts; it explains why events happened, what they mean for the business, and what actions should follow. By presenting data in a narrative format that stimulates discussion and offers surprising insights, HR can engage leaders and translate complex information into actionable strategies.

How can people analytics help HR gain a strategic seat at the table?

People analytics empowers HR to move from reactive reporting to proactive strategic partnership. By using data to answer critical business questions, predict future trends, and demonstrate the impact of HR initiatives on business outcomes, HR leaders can prove their value, influence key decisions, and secure a permanent seat at the strategic table.