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CIPD Level 0FREE02AC 3.1

Using Data for Decisions and Avoiding Common Pitfalls

FREE02People Professional Technologies

Written by the People Study Pro CIPD content teamPublished Updated

This CIPD Level 0 video from the FREE02 People Professional Technologies unit explores how organisations can leverage people data and analytics to support strategic decision-making whilst avoiding common analytical pitfalls. Covering assessment criteria AC 3.1, the video examines practical tools including dashboards and KPIs across turnover, absence, engagement, performance, DEI and pay metrics, alongside workforce planning applications. It emphasises the importance of triangulating quantitative data with qualitative insights and clarifies the critical distinction between correlation and causation in HR analytics. By watching, learners will gain essential skills in interpreting people data responsibly and making evidence-based HR decisions.

What this video covers

Workforce planning sits at the heart of this video, which addresses AC 3.1 of FREE02 – People Professional Technologies. The video examines how quantitative people data — covering headcount, age profiles, skills, tenure, turnover rates, absence, engagement, performance, DEI and pay metrics — feeds into current state analysis and forecasting. It walks through how dashboards and KPIs function as practical tools for surfacing these figures, and how gap analysis connects a present-day workforce picture to projected future needs, including demographic shifts and emerging skill shortages.

A substantial portion of the video is devoted to triangulation: the practice of combining quantitative data with qualitative sources such as exit interviews, focus groups, one-to-one conversations, survey comments and workplace observations. The video makes clear that numerical data can identify what is happening across a workforce, while qualitative insight addresses why those patterns exist — illustrating this with reference to a scenario in which a turnover spike visible on a dashboard requires contextual investigation to interpret meaningfully.

The distinction between correlation and causation receives dedicated attention, with the video using a concrete example involving leadership programme participation and promotion rates to demonstrate how an apparent relationship between two variables can be misleading when a third factor goes unexamined. The video sets out a set of diagnostic questions — about timing, plausible mechanisms and confounding variables — that practitioners can apply when evaluating whether an observed correlation supports a decision. The overall framework positions evidence-based recommendations, built from both data types, as the standard for credible people professional practice.

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Assessment Criteria 3.1

Explain how people data and analytics can be used to support decision-making.

Indicative Content

To include: dashboards and KPIs; turnover, absence, engagement, performance, DEI, pay metrics; workforce planning; triangulating data with qualitative insight; correlation vs causation.

What You'll Learn

Video covering: Using Data for Decisions and Avoiding Common Pitfalls

About FREE02People Professional Technologies

CIPD Level 0
FREE02
Learning Outcome 3

To develop learners’ understanding of key technologies used in people practice, how to select and use them responsibly, and how they can improve people insights, efficiency and employee experience.

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