In today's rapidly evolving business landscape, data-driven decision-making is widely acknowledged as a crucial factor for success. However, a recent survey conducted by Ciphr among 300 HR professionals in the United Kingdom reveals that only a third of employers are fully leveraging their people data to inform workplace decisions. 

With the advent of technology and advanced analytics, HR leaders emphasize the significance of harnessing people data to address critical business challenges and drive strategic initiatives.

According to the survey findings, only 32% of HR professionals believe that their organizations fully utilize people data for decision-making processes. Furthermore, a mere 36% indicate that their organizations actively seek input from HR in making business decisions. 

Claire Williams, Chief People and Operations Officer at Ciphr, expresses concern over this trend, asserting that businesses not fully utilizing people data are missing out on valuable insights that could significantly impact overall company performance.

Williams underscores the substantial role that people costs play in an organization's profit and loss (P&L) statement, often comprising at least 80% of the expenditure. Therefore, she advocates for scrutinizing and leveraging people data in a manner similar to how organizations analyze sales, marketing, and pipeline data.

By doing so, businesses can gain a comprehensive understanding of their workforce dynamics and make informed decisions to drive growth and profitability.

Addressing employment challenges such as retention and training needs requires a nuanced understanding of workforce trends and patterns. Williams highlights the importance of HR teams accessing robust people data to identify areas of improvement and allocate resources effectively. Without comprehensive workforce reporting, business leaders may struggle to identify risks related to turnover or burnout, hindering their ability to address critical issues proactively.

The survey findings also shed light on the essential HR metrics that organizations should track to gain insights into their workforce dynamics. Employee turnover rate emerges as the most critical metric, followed by employee engagement and quality of hires. 

Additionally, HR professionals emphasize the importance of monitoring absence records, employee performance measures, and reasons for absences to identify potential areas for improvement.

Williams emphasizes that people data is instrumental in helping businesses identify and harness talent to foster growth and success. 

By gaining a deeper understanding of their workforce, organizations can instill confidence in their ability to scale effectively in line with forecasted growth. Moreover, informed workforce planning enables businesses to hire strategically, ensuring that capacity gaps do not impact customer service or sales.