HR industry - skills gap in data analytics

With the increasing reliance on technology and data-driven decision making, HR has been forced to evolve and adapt to the changing times. However, the UK HR industry is facing a significant skills gap when it comes to people analytics and data analytics.

Companies that have a strong data analytics culture and people analytics capabilities are more likely to succeed than those that do not. This is why the skills gap in HR regarding people analytics and data analytics is concerning. HR professionals who do not have the skills to collect, analyse, and interpret data cannot effectively contribute to the company's strategic decisions.

The skills gap in HR is not unique to the UK; it is a global phenomenon. However, a study by KPMG found that 82% of UK HR leaders believe that data skills are important for HR, but only 25% believe their teams have the necessary skills to deliver on that expectation. The gap between the importance of people analytics and data analytics skills and the lack of available expertise is concerning.

Moreover, HR professionals without data skills are likely to become redundant in the coming years. In a recent survey, Deloitte found that only 11% of HR organisations have strong analytics capabilities. This means that a majority of HR professionals in the UK lack the necessary skills to contribute meaningfully to the organisation's strategic decisions. As businesses become more data-driven, HR departments that cannot provide valuable insights into workforce performance will become irrelevant.

To bridge the skills gap, organisations need to invest in training and development programs that focus on data analytics and people analytics. HR professionals need to learn how to collect, analyse, and interpret data to identify trends and patterns that can help the company make informed decisions. They need to understand how to use data to measure employee performance, identify skill gaps, and develop talent management strategies.

Additionally, organisations can hire data analysts and data scientists to support HR departments. These professionals can work with HR teams to collect and analyze data, providing valuable insights and recommendations. However, HR professionals must still have a basic understanding of data analytics to effectively collaborate with data professionals.

The skills gap in people analytics and data analytics is a significant challenge facing the UK HR industry. HR departments that lack data skills will struggle to provide valuable insights into workforce performance, potentially becoming irrelevant in the coming years.