Closing the Capability Gap: HR Analytics Skills for Success in 2026

HR has never been more central to business success. From shaping culture to leading digital transformation, this function is increasingly in the spotlight. But with that visibility comes a new pressure: to deliver measurable value.

The truth is, many HR teams are still operating without the capabilities they need to influence strategy effectively. As discussed at the latest HR&M breakfast, the days of relying on soft skills and transactional expertise are over.
In the second part of our HR Analytics series we take a look at the baseline for impactful HR, which includes three critical skillsets:

• Commercial acumen
  
• Data literacy
  
• Digital and AI fluency
  

Without these, HR risks becoming a bottleneck rather than a business driver.

1. Commercial Acumen: Speaking the Language of Value

Many HR professionals feel confident in their business knowledge, but confidence is not the same as fluency. According to recent data, commercial fluency remains one of HR’s weakest subskills. The gap becomes apparent in high-stakes environments or transformation projects, where HR must quantify the value of people-related decisions.

Marko Perme, Gecko HRM’s CEO, reminds us:

To prove this value, HR must be able to:

• Translate engagement into productivity gains
  
• Quantify the cost of attrition
  
• Show the financial ROI of leadership and development programmes
  

This requires moving beyond activity tracking to value-based reporting, where metrics reflect financial outcomes, not just effort.

2. Data Literacy: Turning Numbers into Narrative

The ability to pull reports is no longer enough. HR must be able to analyse patterns, interpret meaning, and tell stories that drive executive action.

As highlighted at the last HR&M Breakfast in Ljubljana, raw data without context is just noise. The real skill lies in translating dashboards into insight, and insight into strategy. Key competencies include:

• Identifying leading indicators like employee sentiment
  
• Connecting people data to operational KPIs
  
• Creating clear visualisations that support decision-making
  

It’s about owning the narrative, not just presenting the data

3. AI Fluency: Leading in a Digital-First World

AI is not replacing HR, it’s redefining its value. At Gecko HRM, we see AI as a multiplier for HR’s strategic contribution. It handles the “boring, expensive work” such as automating admin tasks, drafting documents, and triggering workflow alerts, so HR can focus on what matters.

However, the adoption gap is stark:

• Only 35% of HR professionals feel equipped to use AI
  
• 60% report minimal integration of AI into their workflows
  
  (Source)

Fluency here does not mean writing algorithms. It means understanding what AI can do, evaluating its impact, and guiding ethical, effective adoption. Metrics for measuring AI’s HR impact include:

• Reduction in admin hours
  
• Faster onboarding time
  
• Response time to employee queries
  
• Fewer errors in data handling
  

Value-Driven Innovation for HR

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The goal is not just digital transformation, it’s intelligent transformation.

Building the New Baseline

The capability gap is a question of investment, not talent. HR teams that prioritise these skillsets are better positioned to:

• Drive alignment between people strategy and business outcomes
  
• Translate metrics into executive language
  
• Influence leadership conversations at the highest level
  

As discussed by Sabina and Katja at the HR&M breakfast, HR success today is measured at the intersection of employee experience, business performance, and shareholder value.

From HR Department to Strategic Engine

Closing the capability gap is about reshaping the function’s identity. The future belongs to HR teams that:

• Use data to guide strategy
  
• Speak the language of business
  
• Leverage AI to deliver faster, smarter service
  

These teams are not just supporting change, they are leading it.

Explore how your team can embed these skills by reading The Strategic Power of People Analytics blog. 

Or book a demo with Gecko HRM to see how we’re helping HR evolve into a true strategic partner.

Let’s make HR effortless!

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Curious to see how Gecko can transform your HR? Schedule a quick demo and see how we can help you streamline processes, engage employees, and drive success.

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