Elevate HR from a Cost Center to Strategic Driver

The modern world runs on data. But for too long, human resources has been treated as an exception.

Traditionally viewed as an administrative cost center — the department focused on paperwork, benefits, and compliance — HR’s strategic potential has been limited, especially when compared to data-heavy functions such as finance or marketing.

However, the market is no longer waiting. The rapid evolution of work demands a new kind of HR professional:
One who uses data to predict trends, drive strategic workforce planning (SWP), and actively shape the future of the organization.

The change is already underway. According to TalentNeuron’s analysis of more than six million global job postings from 2018 to 2024, the perceived core function of traditional HR — talent acquisition — has shrunk as a share of all HR job postings. Meanwhile, strategic functions, including total rewards (62% growth), people analytics (48% growth), and workforce planning (22% growth), have surged.

To fully step into this strategic role, HR teams need to equip themselves with the right skills and mindset driven by data and analytics.

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TalentNeuron Senior Product Enablement Consultant Miguel Marin examines the increasing demand for data and analytics skills among contemporary HR teams during a webinar, "Superhuman Resources: Data, Analytics, and the Rapid Evolution of HR."

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The Challenge: A Skills Gap is Widening in HR

The main obstacle to HR achieving its "superhuman" potential is the widening gap between the skills HR teams have and the skills the business needs.

The demand for core, traditional HR skills such as employee relations and compensation management remains still strong, but it's growing at a slower pace. In contrast, data-driven skills are soaring. Skills including data analysis, market trend assessment, and analytical thinking are rapidly becoming non-negotiable requirements for modern HR professionals.

"As data becomes more abundant and complex, HR professionals must be adept at interpreting and deriving actionable insights to drive strategic initiatives and optimize talent management."

Marc-André Lafrenière
Senior Director of Digital HR Transformation and People Analytics at Desjardins (Read the full TalentNeuron interview.)

This challenge is magnified by the fact that HR teams must now operate in a highly competitive market for this specialized talent. The result? HR leaders are asked to provide predictive, strategic guidance, but their teams are often still operating with tools and skills designed for historical, administrative tasks. Bridging this gap requires strategic investment, new technology adoption, and a complete change in internal skill development priorities.

3 Imperatives Guiding the Evolution of HR

To help HR leaders navigate this transition and close the internal skills gap, here are three critical imperatives that are driving the function’s operating model moving forward.

Imperative 1: Embrace data literacy and predictive power

The most defining trend in HR is its shift into the data era. No longer is basic reporting enough; organizations are leveraging sophisticated analytics to inform everything from hiring decisions to performance management.

Worldwide, more than 40% of HR roles in any function now require analytics as a core skill for new hires. This includes roles historically focused on qualitative, human interaction.

This emphasis on data skills — ranging from fluency in tools such as Tableau and Microsoft Power BI to an understanding of machine learning and AI — is critical because it enables HR to be predictive, not just reactive. When HR can distill meaningful insights from talent data, they can guide business strategy, align skills development with future goals, and confidently answer the C-suite’s most pressing workforce questions.

The goal is to move beyond simply tracking historical data (turnover rates, headcount, etc.) and start leveraging data to anticipate and mitigate future workforce risks.

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TalentNeuron Senior Strategic Consultant Erica Lee explores the necessity of building up your HR team's own skills before organizations can successfully transform their entire workforces.

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Imperative 2: Focus on HR’s Own Skill Transformation

We often focus on upskilling the entire company, but HR professionals must apply this same strategic thinking internally. HR itself is not exempt from the future of work.

HR leaders must first focus on identifying and developing the high-priority skills that their own team needs. This requires a dedicated internal SWP effort aimed at the HR function.

Why is this so important? As data shows, the demand for skills such as technology expertise, strategic planning, and analytical thinking is growing rapidly across the HR department. If HR is to lead the organization through digital transformation, it must be digitally proficient itself.

This internal strategy requires cross-functional collaboration:

• Total rewards must design incentives to reward the development of new, high-demand skills (such as data modeling).
• Learning and development (L&D) must build robust training programs to close the skill gap among existing employees.

By focusing on HR skills first, HR leaders ensure their teams are competent, agile, and credible partners for the rest of the business.

Imperative 3: Balance Data with the Human Element

The rise of people analytics does not diminish the “human” in human resources. In fact, it enhances it. The most successful, or “superhuman,” organizations are those that strike a delicate balance: Using data-driven decision-making while maintaining an unwavering focus on the people-centric approach.

This balance is the key to transforming HR from a simple administrative function to a strategic business driver. Analytics should never replace empathy or human judgment, but should instead serve as a powerful lens through which to apply that judgment.

For instance, data can inform us about hiring difficulty, retention risks, and compensation competitiveness. This information allows HR business partners (HRBPs) to move from operational support to acting as true strategic advisors who connect HR strategies with high-level business goals. They use the data to validate people-centric strategies, such as enhancing the employee value proposition (EVP) or prioritizing employee well-being initiatives.

Bottom Line: Start Building a Cross-Functional 'Superhuman Team'

Becoming a truly superhuman HR team is not the responsibility of one data analyst; it’s a concerted effort across multiple functions. The increasing importance of SWP — with 67% of TalentNeuron survey respondents considering it “very or extremely important” — reveals that responsibility is highly distributed.

While the chief human resources officer (CHRO) often emerges as the primary owner, workforce planning and talent acquisition also play significant leadership roles.

• People analytics experts: Leverage data to identify skill gaps and inform development strategies.
• HR VPs/HRBPs: Champion change and serve as strategic advisors within their respective business units.
• Workforce planning teams: Anticipate future needs, align talent pipelines with long-term objectives, and ensure organizational agility.

By combining these specialized "superpowers," HR can navigate the complexities of the future, predict organizational needs, and proactively develop the talent required for sustained success.