HR leaders urged to prioritise accurate data in 2025

"HR leaders are under more pressure than ever to prove impact, mitigate risk and stay abreast of shifting compliance requirements. And that all starts with one thing - accurate data," wrote Kate Wilkinson, Chief People Officer at ELMO Software.

However, as Wilkinson noted, "for many HR teams, collecting high-quality, reliable people data is harder than it sounds." Disparate systems, manual processes and inconsistent standards make accuracy difficult to achieve and even harder to rely upon when making strategic decisions.

The guide sets out the fundamentals of accurate HR data collection, the risks of getting it wrong, and seven practical steps HR leaders can implement immediately.

What is accurate HR data collection?

"Collecting accurate data might sound simple, but in practice it can easily be mishandled or overlooked," Wilkinson wrote.

She defined accurate HR data collection as "the process of gathering, recording and maintaining employee-related information in a way that is complete, correct, consistent and compliant." This encompasses everything from payroll and personal details to performance metrics, compliance records, certifications and learning results.

Why data accuracy matters

According to Wilkinson, "without accuracy, even the best-looking reports are misleading. This means any decision made on this data is going to be shaky at best and risky at worst."

Supporting this, she cited findings from PwC showing "83% of HR professionals say data quality directly impacts their decision-making" and Gartner's estimate that "poor data quality costs organisations an average of $12.9 million each year."

Accurate data, Wilkinson explained, enables better workforce decisions, hiring and onboarding processes, payroll accuracy, compliance reporting, and employee engagement and retention.

The cost of inaccurate data

"Bad data isn't just a nuisance, it can be downright expensive," Wilkinson stated.

The financial impact includes payroll errors, regulatory fines, lost productivity from duplicated work, and wasted recruitment spending caused by incorrect turnover data. Operational risks range from non-compliance with labour laws to poor employee experience and inaccurate workforce forecasts.

Key HR data types

Wilkinson highlighted that accuracy begins with clarity on what to collect. She listed several categories:

• Personal and demographic data: Names, addresses, contact details and emergency contacts, with attention to privacy law compliance.

• Employment and compensation: Contracts, salaries, benefits, and leave balances.

• Attendance and time management: Shifts, overtime, requests, and timesheets.

• Learning and development: Training records, certifications and professional development hours.

• Performance and engagement: Appraisals, surveys and goal tracking.

• Compliance and legal: Licences, acknowledgements and audit trails.

Seven ways to improve HR data accuracy

Wilkinson outlined seven steps HR leaders can adopt:

1. Define clear data objectives – "Know why you're collecting each data point. Is it for compliance, planning or reporting?"

2. Standardise data entry – Templates, naming conventions and dropdowns can reduce errors.

3. Leverage automation – Automating forms, timesheets and alerts can improve reliability.

4. Integrate systems – Connecting HRIS, payroll, learning and recruitment platforms avoids duplication.

5. Empower employees – "Enable self-service updates to reduce admin and increase accuracy."

6. Train your team – Ensure staff "understand the standards and why they matter."

7. Monitor and maintain – Regular audits and reporting dashboards help identify anomalies.

From data to decisions

"When your HR data is captured within an integrated, automated, and centralised system like ELMO's HR Core, you unlock far more than just tidy records," Wilkinson explained. "You gain a trusted dataset that underpins better decision-making across the organisation."

With reliable data, HR teams can spot turnover trends, forecast workforce needs, and meet compliance reporting demands. Wilkinson noted that "good data turns into great strategy," allowing leaders to act quickly, optimise resources and respond to change with confidence.

Dependable, not perfect

"Data doesn't need to be 'perfect', but it certainly does need to be trustworthy," Wilkinson concluded. With the right practices, tools and mindset, HR teams can shift from "reactive reporting to proactive, data-led decision making."