Why HR is best suited to close the data literacy gap

HR leaders are often sidelined during digital transformation initiatives even though people-centric aspects like change management and upskilling define their success or failure.

From workforce training to technology adoption, HR teams have a significant role in fostering digital transformation and the workforce data literacy it requires. 

What is data literacy? 

Data literacy refers to an employee’s ability to:

• Read and interpret data 
• Produce and action insights from data analysis 
• Create visualizations and tell stories with data 

What is the data literacy skills gap? 

Most organizations have a data literacy skills gap where workforce knowledge isn’t as strong as they need it to be. 

The data literacy skills gap is a common challenge because almost all executives expect data literacy from the workforce, but only 39% offer training to all staff. 

This article shares:

• What HR leaders can do to overcome data literacy gaps
• The consequences of data illiteracy
• How to build a data literate workforce

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Why HR leaders must close the data literacy skills gap 

1. Data literacy improves employee engagement and wellbeing 

Data literacy is expected from employees, but little to no training is usually offered to staff. As a result, employees often struggle with anxiety and procrastination when it comes to data-related tasks.

A global research study of 9,000 employees found that 74% reported feeling overwhelmed or unhappy when working with data. Of this sample, 36% spent at least one-hour weekly procrastinating on data-related tasks. 

In other words, data illiteracy prompts: 

• Unhappy employees
• Low productivity
• A disengaged workforce 

HR leaders can change this by attaching data literacy training to larger-scale digital transformation initiatives. 

2. Data literacy is the foundation for AI-readiness 

Workforce data literacy is a necessity for organizations to:

• Move forward on digital transformation initiatives 
• Adopt new technologies like generative AI

In our recent survey of more than 400 organizations, 35% identified a lack of workforce data literacy as a barrier to AI upskilling efforts.

What’s more, data literacy skills only become more essential as new technologies emerge and the AI economy evolves.

3. Deliver better results and workforce productivity 

There are many risks and consequences associated with data illiteracy but the greatest is workforce productivity. 

Research shows that data illiteracy costs organizations 43 hours of productivity per employee annually. By developing workforce data literacy skills, your organization can: 

• Make better decisions
• Innovate faster
• Produce higher revenue
• Increase efficiency 

How HR leaders can achieve widespread data literacy 

The driving force behind the data literacy skills gap is that organizations expect data literacy but don’t provide ways for employees to develop this knowledge. 

To close the gap, HR departments need to partner with Analytics leaders to figure out where data illiteracy lies internally. From there, a targeted upskilling plan can be created to overcome workforce skills gaps. 

Can Massive Online Open Courses (MOOCs) close the data literacy skills gap? 

When organizations need to increase data literacy skills, many turn to massive open online courses (MOOCs).

MOOCs are affordable, accessible, and offer employees the flexibility to learn at their own pace. 

While this upskilling approach might seem appealing, it isn’t effective as few employees ever log into MOOCs, never mind completing them. Research on MOOC learner engagement found that only:

• 52% of participants ever log into the courseware
• 13% of participants finish the training 

As a result, it’s unlikely that you will strengthen data literacy at your organization through this upskilling modality. Thankfully, though, there is a better way. 

The effective alternative: Holistic, expert-led, data literacy upskilling

Upskilling programs that check the following boxes are your best bet for achieving widespread data literacy:

• Develop a wide range of data skills
• Include all employees
• Offer multiple training modes

Forrester found that these training elements produce benefits 10-50% higher than other upskilling methods such as MOOCs.

Another data literacy upskilling best practice is to enlist the help of experts.

For instance, many leading Fortune 500 companies and public sector organizations partner with Correlation One to overcome workforce data literacy challenges.

Correlation One specializes in developing data-driven workforces through learning experiences that are:

• Human-led
• AI-assisted
• Social by design

Recap: How HR leaders can bridge the data literacy skills gap

HR leaders are responsible for connecting people, processes, and technologies across the organization. They set the standard for employee learning and development (L&D) and should empower staff to establish data literacy.

As data becomes more prolific, complicated, and expensive to manage, the urgency around workforce data literacy only increases. 

Move forward on establishing workforce data literacy at your organization by partnering with Correlation One. We help Fortune 500 companies and public sector organizations close the data literacy skills gap with custom training tailored to your workforce and its challenges.  

Get your free workforce data literacy assessment from the Correlation One team.