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Strategic HR is influential HR, and data is the key to making that happen, writes Nirit Peled-Muntz.
This year, large organisations across Australia have been required to report their gender pay gap data as part of a nationwide effort to address pay disparities between men and women. While the primary intention of this reporting mandate was to promote gender equality, a surprising and unintended consequence has emerged. As HR teams scrambled to ensure the accuracy of their compensation data, they not only met regulatory obligations but also unlocked the power of data-driven insights that go beyond pay equity.
HR professionals, who once spent hours poring over spreadsheets to ensure their gender pay gap figures were accurate, have found themselves inadvertently improving their overall data management practices. This process has shone a spotlight on the critical role of data in HR strategy, creating a ripple effect that has changed the way businesses operate.
Why data is important in HR strategy
Data, when properly collected, analysed, and presented, has the potential to illuminate various aspects of workforce planning and strategy. For instance, it can provide answers to pressing questions like: Will I need to hire more people in six months? Are our training programs delivering the results I need? Do our teams have the right skills to address the organisation’s needs? How are my recruitment efforts shaping company culture?
For years, obtaining the investment necessary for effective HR data capture was a challenge. However, the introduction of gender pay gap reporting regulations has helped companies recognise the value of refining their data collection, storage, and analysis of compensation information. This shift has enabled HR teams to use data as a powerful tool for business intelligence. With the right technology and analytical capabilities, HR now provides valuable insights into talent management, productivity, engagement, and workforce trends, ultimately empowering more strategic decision making across the organisation.
HR’s seat at the strategic table
With access to high-quality, well-organised data, HR professionals have now reinforced their place at the strategic decision-making table. Now, they are actively contributing to key business discussions, influencing decisions with data-driven insights that show the real impact of HR on business performance.
This shift has strengthened the relationship between HR and other key leadership roles like the CEO and CFO. With solid data in hand, HR can now demonstrate how their initiatives – whether in hiring, development, or retention – directly contribute to business goals. This change has helped to promote HR to be a more proactive and strategic driver of business success.
The power of data and the role of technology
The journey from gender pay gap reporting to strategic influence is a testament to the power of well-managed, well-presented data. And it’s clear that spreadsheets alone won’t cut it any more. To continue building on this progress, HR professionals will need to invest in the right technology solutions to manage, analyse, and present their data efficiently.
Modern HR technology platforms can provide real-time insights and predictive analytics that are essential for informed decision making. They not only make data management less cumbersome but also elevate HR’s ability to forecast, strategise, and influence company direction.
The unintended consequence of gender pay gap reporting has been the elevation of HR as a strategic partner within organisations. By leveraging data, HR professionals have demonstrated their value and secured their place in the boardroom. However, to continue this momentum, HR needs the right tools in place – because, as anyone who has worked with large data sets knows, spreadsheets can only take you so far.
Strategic HR is influential HR, and data is the key to making that happen. As businesses look to the future, it’s clear that HR’s role as a data-driven, strategic partner is here to stay.
Nirit Peled-Muntz is the chief people officer at HiBob.
RELATED TERMS
The term "gender pay gap" refers to the customarily higher average incomes and salaries that men receive over women.
