Data: The new currency in HR’s ascent to the boardroom

A decade ago, HR was primarily seen as the team managing payroll, policies, and employee grievances. But now, with the workforce’s evolving needs, we are champions of company culture, advocates for employee growth, and key players in workforce strategic planning, writes Nirit Peled-Muntz.

Our role has shifted dramatically in response to changing work norms and the global disruptions of recent years, including the pandemic, economic pressures, and a cost-of-living squeeze. But despite these challenges, we have shown immense resilience, guiding our organisations through uncertain times and, in the process, developing new skills and capabilities that have further strengthened our strategic role. As a result, HR’s influence and impact within organisations have grown, and we are essential partners in shaping business strategy.

Today, HR is a strategic force in the boardroom, driving business decisions. The transformation of HR from an operational role to a strategic partner has been fueled by a critical element: data. As HR professionals, we’ve harnessed the power of data to turn insights into actions that align with business objectives. This shift has not only expanded our influence but has also solidified our position at the strategic table. The journey from operational support to boardroom influence has been profound, and it’s all been made possible by embracing data as the new currency in HR.

But now that we’re more business-oriented in our thinking, where do we go from here? How do we maintain our position in the boardroom?

Influential HR: From tactical to strategic

As HR professionals, we often compartmentalise the different aspects of our roles. We often see onboarding, compensation, employee wellbeing, learning and development, recruitment, and company culture as distinct separate tasks. These are the tactics we use to impact our business. But to truly make a difference and solidify our place in the boardroom, we need to elevate our approach from tactical to strategic.

HR strategy is fundamentally about aligning our people initiatives with business objectives. Every good strategy starts with clear objectives. As HR leaders, we must adopt a top-down approach, where we prioritise understanding our business’s goals before determining our people strategies. We should be able to recite our business’s objectives in our sleep, ensuring that all our efforts align with at least one of those goals. This shift in mindset enables us to think holistically about the various aspects of HR rather than viewing them in siloes.

For example, consider a business objective like expanding into a new market. As HR leaders, we need to assess whether our existing workforce has the necessary skills to support this expansion. Do we have enough people to achieve this goal within the necessary time frame? Are our training programs aligned with this objective? What are the implications of hiring new talent to fill the gaps? It’s also crucial to estimate how long it will take us to prepare our workforce to meet these new challenges.

These are the types of strategic questions we need to be prepared to answer in board meetings. However, answering these questions effectively requires robust data. The challenge is that much of this data often resides in disparate spreadsheets, making it difficult to gain a comprehensive view.

Data: The new currency in HR

Data has become the new currency in HR – and it goes way beyond basic metrics like headcount and pay grades. Strong HR data provides insights into your gender pay gap, diversity ratios, recruitment quality, the impact of training programs, absenteeism trends, and even signs of “quiet quitting”. With the right kind of data in the right kind of format, we can anticipate workforce trends, identify potential issues before they escalate, and develop proactive plans to address them.

That’s why using modern technology, including AI, to gather, store, and analyse HR data is now an essential part of any people-first strategy. AI, in particular, has revolutionised our ability to process and interpret data more quickly and accurately, enabling us to combine multiple data sources to create a more holistic picture. This comprehensive approach helps us to draw deeper insights and make more informed decisions that better align with both employee needs and business goals.

Armed with this data, HR can provide actionable insights to the C-suite, particularly to the CEO and CFO. Sharing this information with leadership teams helps to clarify what’s needed to achieve business objectives, allowing for better planning and strategic decision making.

HR as a catalyst for change

HR’s role now extends far beyond traditional employee engagement. We are now the architects of business success, driving innovation, growth, and transformation within our organisations. Our ability to make use of data, embrace new technologies, and align people strategies with business goals positions us as catalysts for change.

As we continue to evolve, our influence will only grow. By maintaining our focus on strategic thinking and data-driven decision making, we ensure that HR remains at the forefront of driving innovation and growth in our organisations. This is not just a temporary shift; it’s the new reality of HR as a critical force in business success.

Nirit Peled-Muntz is the chief people officer at HiBob.