Data Labels That Tell Stories: Enhancing Your HR Charts with Context

Standard Excel charts do a reasonable job of displaying data, but they often miss the opportunity to provide essential context that transforms a simple visualization into a powerful decision-making tool. In a recent post, I discussed using color to highlight important data points, today we're taking our visualizations to the next level with custom data labels—the secret to creating charts that tell complete stories without requiring your audience to interpret the raw numbers.

Why Custom Data Labels Matter in HR Reporting

In HR reporting, context is everything. A 15% turnover rate in engineering might seem acceptable on its own, but becomes immediately concerning when your label also shows it's 5% higher than company average and doubled from last year. Standard Excel charts only show the basic numbers, missing the crucial context that drives decisions.

Custom data labels solve this problem by embedding multiple data points and contextual information directly into your visualizations. They transform a simple chart showing departmental turnover percentages into a comprehensive view that simultaneously displays the current rate, comparisons to benchmarks, and trend information without requiring your audience to hunt for this critical context elsewhere.

Real-World HR Applications

• Performance Distribution Visualization - Add context to show both the percentage of employees in each category and comparison to the company targets: 15% (35 employees) ↑3%

• Compensation Analysis - Display comprehensive salary information in a single label: Marketing: $72,450 (98% of market) ↑4.2% YoY | Range: $65K-$85K

• Recruiting Metrics - Show both current state and targets for time-to-fill: Engineering: 45 days (Target: 30) 10 open positions

Here's an example showing how custom data labels enhance a performance distribution chart:

Creating Custom Data Labels: The Step-by-Step

1. Create your basic chart (column, line, etc.)

2. Prepare your custom label data in a separate range:

   • Create a formula that combines multiple data points

   • For example:  =A2 & " (" & B2 & " employees)" & CHAR(10) & IF(C2>0,"↑","↓") & ABS(C2) & "% vs. last year"

   • The CHAR(10) adds a new line within the label

3. Add your first data series and format the data labels:

   • Right-click on chart data points

   • Select "Add Data Labels"

   • Right-click on labels and select "Format Data Labels"

   • Check "Value From Cells" option

   • Select the range containing your custom label text

     
     

     How to video on using custom data labels

     
     

Final Thoughts

Custom data labels transform passive charts into active decision-making tools. They present complete context within a single visualization, making your reports more impactful and easier to understand. Once you've set up your custom label formulas, they'll update automatically whenever your data changes—saving time while improving clarity.

When designing your labels, remember that simplicity remains important. Focus on the 2-3 additional data points that are most critical for decision-making, rather than cramming in every possible metric.

PS - Try adding visual indicators like arrows (↑↓), warning symbols (⚠), and checkmarks (✓) to make trends instantly recognizable without adding text clutter to your labels.