Gut feel and goodwill may have once been enough to guide people decisions, but in today’s data-driven world, they’re no longer fit for purpose. For HR leaders looking to steer their organisations with precision, data is the compass, and analytics skills, the map. The modern workplace generates data with every interaction, making people analytics less of a buzzword and more of a business imperative.

According to the Baromètre RH 2024 by OpinionWay for Kelio, data ubiquity is now a reality. Data is no longer confined to isolated reports; it’s embedded in everyday HR processes. Yet despite rising interest in predictive analytics and AI, many teams are still stuck in a reactive loop, hindered by legacy systems, talent shortages, and skill gaps.

Momentum is building, especially in mid-sized firms. In early 2024, a survey of 301 HR professionals in France revealed that 28% were already using AI daily, while resistance to AI adoption had dropped by 16 points from the previous year. Still, 60% remained hesitant. The shift is accelerating though: 34% of HR leaders in midsized firms are embracing AI tools, and 91% of global tech decision-makers expect to increase IT spend in 2024.

But even the best technology is only as effective as the people behind it. As HR evolves into a discipline of strategists, analysts, and internal consultants, professionals must master a new blend of skills to extract value from data and translate it into impact.

Why people analytics is indispensable in today's HR function

Analytics shifts people decisions from gut feel to evidence-based rigour. Here’s why it’s now mission-critical:

1) Data-driven decision making

Analytics injects objectivity into HR. It supports fairer hiring, performance evaluation, and programme design, backed by hard facts. Whether it’s tracking which sourcing channels bring in top talent or measuring training ROI, data underpins better outcomes.

2) Optimised talent acquisition

Predictive models help HR teams anticipate candidate fit, improve cost-per-hire, and plan future recruitment needs with greater accuracy.

3) Boosted engagement and retention

Real-time insights from surveys and HRIS tools can reveal flight risks and morale dips early, allowing for tailored interventions.

4) Smoother performance management

Data-driven reviews reduce subjectivity and provide a clearer picture of development needs, productivity, and business impact.

5) Strategic workforce planning

Analytics enables proactive talent strategy—matching skills supply with demand, controlling labour costs, and aligning talent with business objectives.

6) Measuring HR’s ROI

With the right metrics, HR can speak the language of the boardroom—proving its impact on revenue, customer satisfaction, and profitability.

Eight essential skills for people analytics success

To turn data into action, HR professionals need a toolkit that blends technical chops with strategic insight and stakeholder savvy. These eight skills are the building blocks of a future-ready HR function:

1) Data analytics and technical expertise

This is the foundation. From cleaning and interpreting datasets to using tools like Power BI, Tableau, Python, or R – technical fluency transforms data from noise into insight.

2) Work psychology and behavioural science

Numbers only tell part of the story. Behavioural insights provide context—explaining why engagement may be falling or burnout rising. It’s the bridge between data points and human patterns.

3) Business and HR acumen

Analytics must connect with commercial goals. That means understanding the P&L as well as the performance review cycle. HR professionals need a foot in both camps: people and profit.

4) Communication and storytelling

Good data poorly told is data wasted. The ability to weave insights into compelling narratives, whether via dashboards or boardroom briefs, ensures they get acted on, not shelved.

5) Consulting and stakeholder management

Analytics often means navigating tricky political waters. Effective HR data professionals listen well, challenge assumptions, and act as trusted advisors who can nudge leaders toward better decisions.

6) Integration and cross-functional alignment

HR data doesn’t exist in isolation. Collaborating across functions and systems – HR, finance, IT, marketing – is key to building a connected, trusted data ecosystem.

7) Translator capability

Bridging the gap between data scientists and business leaders is a vital but undervalued role. Translators help make sense of the numbers, turning technical insight into business value.

8) Curiosity, innovation, and continuous learning

In a world where tools evolve fast, the hunger to learn keeps professionals relevant. Whether it’s understanding generative AI or mastering reusable data products, curiosity is a competitive advantage.

The AI shift: changing the shape of HR

AI has already made its mark – from CV screening to onboarding automation and even predicting attrition with up to 87% accuracy. Recruitment tools now cut hiring costs by 30%, while platforms offering reusable analytics models are enabling HR to move at pace and scale.

According to AIHR’s HR Trends Report 2025, HR teams are no longer back-office administrators. They’re evolving into creators and strategic advisors. Take IBM, for example, which has automated entire HR functions, freeing up human capital for higher-value roles in leadership, sales, and product innovation.

Yet, no matter how smart the tech, it’s human capability that ultimately determines success. The future of HR isn’t just automated; it’s augmented. And the leaders who’ll thrive in this next chapter are those who invest in both machine intelligence and the human intelligence to wield it wisely.