HR departments are jostling with their Finance counterparts at the head of the race towards data-driven business decision making. New research* suggests that 61% of HR departments use data in most decisions. They are second only to Finance teams (67%), and far ahead of the least data-driven department – Sales (39%).

However, almost four in ten HR teams still rely mainly on gut feeling and intuition in decision making, and only just over a quarter are analysing their numbers with the most up-to-date and productive data science. A fifth (20%) use algorithms while only 7% have started to use machine learning techniques to get the full value from their data in decision making. 

The research is detailed in its new ‘Data Science in HR’ report, which includes insight from a study of 500 leaders at UK based organisations and advises how HR departments can improve their efficiency and performance by becoming more data-driven.

The report reveals that HR leads in the systematic collection of data. 94% of HR directors told researchers that their departments have processes allowing data to be gathered consistently over time, with more than half (55%) using specialist HR databases and applications for the job. This puts them in a strong position to adopt more advanced techniques to get full value from its data.

The study also suggests that HR departments still rely heavily on humans to interpret data. 38% do not use analytics, and just 7% are at the leading edge of data science – using advanced analytics and AI to predict future trends and make decisions accordingly. 

Antony Heljula, Technical Director at Peak Indicators, comments: “The good news is that HR departments are ahead of the pack when it comes to using data to inform decisions. These leaders are laying a strong foundation on which they can improve their analytical capability and insight for a wide range of decisions – across pay reviews, retention, recruitment and staff development.”

“To get there, we need to see less focus on the human interpretation of data and a greater emphasis on data science. HR departments are already collecting good data, and collating it cleanly in databases. This means they’re in an excellent position to use AI technologies that can analyse data and guide decision-making – making sure the best decisions are made every time.”

*Peak Indicators