Data and knowledge fitness as a transformation enabler
Or the opposite, and perhaps worse: we delay necessary initiatives because our data house isn’t in order. “We’re not ready” is often a reflection of data integrity and resource readiness.
Individual initiatives and larger transformation programmes require data and knowledge fitness, not as a “later” thing and not as a checkbox, sprint, or cosmetic dashboard project. It’s not even “done” once it’s cleaned up for go-live.
Data is fitness. Knowledge is fitness.
And fitness is never one-and-done.
If you’ve ever trained for anything — a race, a recovery, a reinvention — you know this: you don’t show up cold and expect to perform. You build strength, develop habits, and live the discipline. You sweat the small stuff so your body (or business) doesn’t break when the pressure is on.
Why does data and knowledge fitness matter?
The world of work is increasingly digital, distributed, and global. Whether your business is big or small, the expectations of the workforce are higher than ever and always evolving — consumer experiences set the bar high for frictionless and intuitive work experiences, personalisation is table stakes, and generational shifts in the workforce mean different value systems must be considered.
The opportunity to build systems and experiences to expectation is about more than serving stakeholders. The evolution of HR shared services, AI-first and agent-supported workflows, and direct access to employee services means we’re creating capacity for focused and strategic work, empathy, and more relational interactions.
Data and knowledge fitness can also reduce enterprise and people risk by ensuring that the content, insights, and decisions generated — especially by AI — are grounded in accurate, current, and contextually relevant information. Without it, you risk misinformation, eroded trust, and actions that amplify bias, inequity, or legal exposure.
Most executives agree that their best competitive and strategic advantage lies in how they maximise and optimise their most valuable assets: people being your top one. For example, many employees hold institutional knowledge of the enterprise.
Mismanaged, redundant or trivial, conflicting or outdated knowledge is said to cost a business an average of 25% of its annual revenue, according to Bloomfire’s Value of Enterprise Intelligence 2025 report. Treating knowledge as both evolving and revenue-driving leads to 47% higher success in achieving objectives and key results (OKRs), 39% improvement in the speed and efficiency of teams, and 23% lift in productivity as measured by revenue per employee.
So yes, fitness pays.
Transformation without data fitness is performance theatre
Mercer supports thousands of transformation and technology initiatives, so we know: we rarely start with the raw materials we need to succeed. It’s easy to think of change as design, tech, timelines, communications, and training. But the real foundation is data and knowledge by design — how it's collected, governed, used, and whether it's fit for purpose.
And right now, that purpose is evolving faster than ever.
We’re rethinking how work gets done. What it means to be productive. How humans and machines co-create. We’re shifting from rigid hierarchies to dynamic skills ecosystems. From manual workflows to automated, AI-augmented value streams. From generic experiences to personalised, meaningful ones.
None of that happens without clean, connected, continuously refreshed data.
Fitness isn't a one-time activity — a single workout. It's a lifestyle change, a set of habits you form to stay healthy and ready for the future. You can start by learning more about your body, nutrition, different exercises and workout styles, but at some point, you need to just jump in. Start exercising within some reasonable limits to prevent accidentally tearing a muscle or overworking yourself.
Then, you can tweak your routine, choosing the right exercises and number of sets and reps to reach your goals, or modify your diet, consuming more or less calories and increasing or decreasing your macros based on what's going to be the healthiest and most effective based on your goals. You can optimise all of that further as your goals change — and they will change as you move forward.
It's an interesting parallel because in fitness, exercise is the thrilling part, the part that gives you the adrenaline rush or the dopamine high and makes you feel good. Diet, on the other hand, is the part a lot of people struggle with — counting calories can be problematic, adjusting macros feels like work, and doing all of that while eating food that tastes good can seem difficult. But diet is 80% (or more) of the equation with fitness. What you put into your body is absolutely essential to fuel what you want to get out of it.
When preparing to deploy new technology or use AI, setting up dashboards and workflows, building custom generative pre-trained transformers (GPTs) and releasing bots is a lot like exercise. You need to work your way up to it, but it's the part that's thrilling and exciting, like hitting a new personal record (PR). The data, both structured and unstructured, that you analyse and train models on is much more like nutrition.
If you don't count your calories and monitor your macros — like having the right fields and valid inputs in your organisation and people data, and ensuring your knowledge content is up-to-date, accurate, and useful — then you're not going to hit that PR, and you might even get hurt trying.
Bad data = Big risk
Here’s the thing: when data is an afterthought, everything downstream suffers. AI models hallucinate. Automation triggers the wrong workflows. Compensation decisions miss the equity mark. Talent strategies collapse under false assumptions. And employees disengage because their lived experience doesn’t match the promises we made.
This isn’t just about efficiency — it’s about trust, ethics, and risk mitigation. A workforce that doesn’t believe the system “sees” them accurately will never lean in. A system that operates on outdated, inaccurate, or biased data will never be fair. And an enterprise that can’t trust its insights will never move fast enough to compete.
Garbage in, garbage out
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Poor HR data and knowledge leads to:
- Subpar user experiences with intranet or HR portal
- Frustrations with inaccurate or irrelevant information
- High volumes of routine enquiries and tier 0 cases
- Inconsistent and inefficient service delivery
- Limited ability to report, analyse, target and personalise
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Data and knowledge are the foundation for digital success
Automation of any kind, including agentic AI, is powered by your data architecture and integrity — structured data. GenAI is powered by knowledge content — unstructured data. Without both, there are significant risks in deploying HR or workforce tech and AI. This creates limitations on capabilities, the potential for misleading or inaccurate information, and poor adoption.
This foundation is critical for digital deployments. Future-ready data architecture with the right structures and attributes underpin useful, usable experiences with direct access to information and services.
Treat content like a garden, harvest for outcomes
This isn’t about hygiene for hygiene’s sake. It’s about designing and maintaining data systems that can keep up with the velocity and complexity of modern work.
So how do you build real data and knowledge fitness into your transformation agenda?
Governance needs to be embedded in your operating model, not bolted on as a remediation effort. Think data-as-a-product mindset: always available, always evolving, always aligned to how the business actually runs.
- Who owns the data?
- Who maintains it?
- Who makes decisions based on it — and how do they know it’s still valid?
Enterprises tend to obsess over structured data — things like job codes, pay bands, and competency frameworks — because they’re easier to control. But today’s most valuable insights often live in the messy middle:
- Performance feedback
- Project summaries
- Policies, programmes, and procedures
- Collaboration signals
- Natural language from chat, email, and surveys
- Audio, video, and sentiment cues
The workforce is generating signals every day. If you ignore unstructured data, you're only seeing part of the picture.
Practical tip:
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Use AI/ML-powered tools to analyse unstructured content for skills, engagement, and emerging needs.
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Pair that with structured systems of record for alignment and traceability.
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Build connectors — don’t force everything into a single system. Flexibility is part of fitness.
Fitness isn’t about one big detox. It’s about daily reps. Treat your data the same way.
- Build validation into workflows (not just audits after the fact).
- Make it easy for people to update their own information — especially skills, preferences, and goals.
- Use feedback loops to continuously improve (and correct) the data you rely on.
Think of this as “data-in-motion” rather than “set it and forget it.” Live data, in flow with how people actually work and evolve.
Data isn’t valuable because it’s accurate. Knowledge isn’t valuable because it’s up-to-date. They're valuable because they drive better outcomes.
- What does clean skills data unlock? Smarter mobility and internal talent pipelines.
- What does accurate compensation data enable? Equity analysis and responsible pay transparency.
- What happens when feedback loops are timely and real? Trust builds, AI outputs improve, and the employee experience gets sharper.
Without a clear connection to value, no one will prioritise data and knowledge stewardship. Make the impact visible and repeatable.
You can invest in the best tools on the market — automated mapping, skills ontologies, real-time analytics — but if your people don’t care about the quality of the inputs, you’ve missed the point.
Fitness is a lifestyle. Build the habits into the flow of work:
- Reward contribution and accuracy.
- Design interfaces that make updating data easy, intuitive, even delightful.
- Build shared understanding of why good data and knowledge leads to better decisions, fairer outcomes, and faster progress.
Data and knowledge fitness isn’t a back-office hygiene task — it’s a transformation enabler.
Global Leader, HR Digital Transformation & Technology Advisory, Mercer
Global HR Digital Transformation Strategy & Employee Experience Design, Mercer