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Talent and analytics: New approaches, higher ROI
Abstract
Purpose
– More and more, the leaders of business functions are turning for competitive insights to the massive data they can now capture. But to date, human resources departments have lagged behind the efforts of marketing, IT, CRM and other functions. The purpose of this article is to show how executives can start using data to measure and improve HR's contributions to business performance.
Design/methodology/approach
– The article identifies six analytical tools that HR can use to connect HR efforts to business performance. Survey results underscore the value of an analytical approach while revealing that many HR departments are heavily focused on internal measures rather than business outcomes. Each analytical tool is exemplified through case studies. A model is presented to suggest how executives can get started by focusing on five key areas.
Findings
– Leading companies are using six analytical tools to improve the connection between HR investments and business returns: employee databases; segmentation of talent; targeted investments; customization of the employee value proposition; long‐term workforce planning; and talent supply chains.
Originality/value
– As the case studies reveal, the tools identified here can help HR leaders actively shape their organization's future – managing talent and directing programs toward the long‐term needs of the business. Survey data shows that most companies increasingly seek to use analytics for long‐term advantage, and the model presented here can help HR executives take the first critical steps.
... This finding contributes to the AI and HRM literature by emphasizing that contextual stimulus (HRM system strength) can strengthen the effect of AI-enabled HRM analytics. Second, the extant studies focused primarily on the link between HR analytics and organizational performance outcomes (Aral et al., 2012;Harris et al., 2011), while there is a paucity of knowledge about the relationship between HR analytics and employee well-being outcomes. Drawing on the JD-R model, our study enriches the existing research by casting light on the positive influences of AI-enabled HR analytics on employee resilience, which is a critical indicator of employee well-being at work. ...
... Considering that AI-enabled HR analytics has become more widespread, scholars have been devoted to theorizing the role of AI-enabled HR analytics in optimizing various HR practices, including employee performance management, recruitment, retention, and training and development (Cavanagh et al., 2021;Giermindl et al., 2022). Much empirical research has confirmed that AI and HR analytics may provide many benefits for employees and organizations (Marler and Boudreau, 2017;Minbaeva, 2018), such as leading to better financial performance (Aral et al., 2012), improving business performance (Coco et al., 2011), and enhancing return on investment (Harris et al., 2011). These positive performance outcomes can be achieved because organizations access massive employee data and real-time information to gain comprehensive insights into their employees (Chatterjee et al., 2022). ...
... AI-enabled HR analytics is one of the technological advancements that can lead to superior organizational outcomes (Chalutz Ben-Gal, 2019; Marler and Boudreau, 2017), such as financial returns (Harris et al., 2011) and business performance (Coco et al., 2011). Nevertheless, scant attention has been devoted to the relationship between AI-enabled HR analytics and employee well-being outcomes. ...
Purpose
Based on the JD-R model and process-focused HRM perspective, this research paper aims to investigate the processes underlying the relationship between AI-enabled HR analytics and employee well-being outcomes (resilience) that received less attention in the AI-driven HRM literature. Specifically, this study aims to examine the indirect effect between AI-enabled HR analytics and employee resilience via job crafting, moderated by HRM system strength to highlight the contextual stimulus of AI-enabled HR analytics.
Design/methodology/approach
The authors adopted a time-lagged research design (one-month interval) to test the proposed hypotheses. The authors used two-wave surveys to collect data from 175 full-time hotel employees in China.
Findings
The findings indicated that employees' perceptions of AI-enabled HR analytics enhance their resilience. This study also found the mediation role of job crafting in the mentioned relationship. Moreover, the positive effects of AI-enabled HR analytics on employee resilience amplify in the presence of a strong HRM system.
Practical implications
Organizations that aim to utilize AI-enabled HR analytics to achieve organizational missions should also dedicate attention to its associated employee well-being outcomes.
Originality/value
This study enriched the literature with regard to AI-driven HRM in that it identifies the mediating role of job crafting and the moderating role of HRM system strength in the relationship between AI-enabled HR analytics and employee resilience.
... Human capital analytics is concerned not only with studying and developing human capital but also involves employing analytical methods to analyse employee data to influence organizational strategy and increase performance (Kusairi et al., 2023;Chalutz Ben-Gal, 2019). Among many, Harris et al. (2011) address the value of HR analytics to an organization's long-term success, prescribe strategies to retain key employees intending to leave and reallocate funds to more important initiatives by delivering measurable investment returns. Based on the above argument, our research seeks to test hypotheses and develop a theoretical model to understand better how HR analytics affect organizational performance. ...
... This is attested to by numerous case studies that highlight how HR analytics encourages evidence-based decision-making to enhance HR and organizational performance. (Harris et al., 2011;Marler and Boudreau, 2017;Rasmussen and Ulrich, 2015;Cho et al., 2023). Bank of America, for example, implemented HR analytics in partnership with Humanyze, as shown in a study by Garay et al. (2015), which emphasized enhanced HR and business performance as a significant outcome of employee interactions. ...
... The study confirmed Hypothesis 1, revealing a positive correlation between HR analytics and organizational performance, with HR analytics serving as a mediator, consistent with Coron (2021), Marler and Boudreau (2017), Minbaeva (2018), and Cho et al. (2023). Furthermore, evidence-backed decisionmaking was found to mediate the link between HR analytics and organizational performance, supporting Hypothesis 2. This aligns with Harris et al. (2011), Rasmussen and Ulrich (2015), Garay et al. (2015), and Cho et al. (2023), emphasizing the pivotal role of peer relations in productivity prediction. However, the study indicated that access to HR technology did not influence organizational performance. ...
The purpose of this paper is to present empirical research on the impact of human resource analytics on organizational performance in Bangladeshi firms. Although some firms use HR analytics, it is uncertain whether HR analytics improve organizational performance. HR analytics is the use of data and analytics to improve corporate performance through HR processes and policies, using workforce data to make data-driven workforce planning and hiring decisions. 206 questionnaires were collected from professional service firms (accounting, advertising, consulting, and law firms), financial service firms (banking and insurance firms), information, communications, and technology firms, and other service firms (education, healthcare, pharmaceutical, and engineering firms) using a quantitative method. For data analysis, SmartPLS 3.2.8 and the Structural Equation Modeling (SEM) tool were utilized. The findings support the proposed chain model, which implies that access to human resource technology enables human resource analytics, which supports evidence-based management decision-making, and as a result, improves performance. The implication is to encourage organizations to invest in HR analytics by forming HR analytics teams committed to analyzing workforce data to make strategic workforce decisions about investment in HR analytics. Thus, establishing HR analytics-related goals and policies that contribute to workforce planning and recruitment in enterprises. Previous research did not focus on the perspective of HR analytics in developing nations. This paper fills that gap by presenting empirical evidence from a developing nation like Bangladesh. Keywords: Human resources analytics, organizational performance, human resource management, evidence-based decision-making, Bangladesh.
... For instance, Rasmussen and Ulrich (2015) noted that HRA faces practical hurdles due to the unique nature of HR data and the need to address privacy concerns, which limits the collection and use of data to transform workforce management. Additionally, the scarcity of expertise in data analytics, statistics, and modeling among HR practitioners is a significant barrier to HRA implementation (Harris et al. 2011). At the organizational level, barriers include shifting from subjective personnel decisions to data-driven HR choices, which require infrastructure changes and the integration of HRA principles into the corporate culture (Levenson 2018). ...
... By analyzing historical and real-time data, AI algorithms can identify patterns and recommend actionable strategies, making HR practices more efficient and effective (Thoresen and Strohmeier 2023). However, the widespread adoption of these tools remains hindered by challenges, including privacy concerns, data quality issues, and a lack of data science expertise in HR departments (Harris et al. 2011). ...
As modern enterprises increasingly turn to data-driven decision-making, human resource management (HRM) has also embraced the potential of human resource analytics (HRA) to optimize talent management and gain a competitive edge. However, adopting HRA in practice presents challenges across data governance, technical, and organizational domains. This systematic review, synthesizing insights from 110 studies, identifies key obstacles and practical strategies to address them. Recommendations include fostering a data-driven culture, enhancing training and development, and promoting team collaboration. By tackling these challenges, HR professionals can unlock the full potential of HRA, transforming HRM into a strategic driver of organizational success.
... The current state of the art in HR analytics implies that many corporates gather and/or analyze relatively limited types of human resources data and utilize a retrospective approach to report HR operations to senior management (Harris & Light, 2011;Angrave et al., 2016). This is according to current knowledge in the field of HR analytics. ...
... This is because the capability of these information systems might be restricted, and historical information can only be provided. According to Harris and Light (2011), typical analytical formats, although useful for reporting, are not enough for accurately predicting crucial employee and business outcomes. Given the prospective nature of strategic HRM, it stands to reason that the use of robust HR analytics-including a range of descriptive, diagnostic, predictive, and prescriptive analytics-will foster policy development and, in the long run, boost business success by influencing high-performing workforce activities and engagement-based HR processes. ...
Objective: This research aims to explore and highlight the growing importance of HR analytics in the corporate sector for data-driven decision-making and strategy execution. The primary objective is to present evidence of the increasing adoption and impact of HR analytics, both in academia and the actual corporate world. The study also intends to identify the requisite experience and competencies for HR analytics practices and to propose best practices and recommendations to enhance the effectiveness of HR analytics in organizations. Method: This research involves a comprehensive literature review, examining existing research and case studies on the utilization of HR analytics in the corporate sector. Various sources, including academic papers, industry reports, and real-world examples, were analyzed to gain insights into the current state and trends of HR analytics in practice. Results: The findings of the literature review demonstrate a significant surge in interest and implementation of HR analytics in the corporate world. The data-driven approach has shown considerable promise in aiding HR professionals in making informed decisions and aligning HR strategies with overall organizational goals. Evidence from both academic and practical sources supports the value of HR analytics as a crucial tool for optimizing HR processes and enhancing workforce productivity. Conclusion: Based on the research findings, it is evident that HR analytics has emerged as a pivotal component in the corporate sector, revolutionizing how HR professionals execute strategies and contribute to organizational success. The study substantiates the need for organizations to prioritize the development of HR analytics expertise and competencies among their HR teams. Moreover, the research highlights the importance of establishing best practices and guidelines for effective HR analytics implementation, ultimately leading to better talent management and organizational performance. As HR analytics continues to evolve, future research in this field should delve deeper into addressing competency requirements and refining the strategies for harnessing the full potential of HR analytics in the corporate landscape.
... Furthermore, research on HR metrics has proposed guidelines to ensure their reliability and validity. To illustrate, organizations should keep simplicity in their measures (Ulrich & Dulebohn, 2015) and prioritize the use of relevant indicators for gauging HR's business impact (Harris et al., 2011;Weiss & Finn, 2005). Metrics should also maintain consistency across stakeholders (Coron, 2021), allowing organizations to compare different groups internally and externally using uniform benchmarks (Harris et al., 2011). ...
... To illustrate, organizations should keep simplicity in their measures (Ulrich & Dulebohn, 2015) and prioritize the use of relevant indicators for gauging HR's business impact (Harris et al., 2011;Weiss & Finn, 2005). Metrics should also maintain consistency across stakeholders (Coron, 2021), allowing organizations to compare different groups internally and externally using uniform benchmarks (Harris et al., 2011). Scholars also stress the need to customize analytics dashboards to acknowledge that the actual metrics used may differ between businesses (Ellmer & Reichel, 2021). ...
Human resources (HR) analytics implementation is a field that continues to evolve, keeping pace with the increasing speed of digital innovation. However, despite its practical significance, there is a lack of knowledge of effective HR analytics implementation. Therefore, in this study, by conducting an in-depth analysis of 89 peer-reviewed HR analytics studies published during the past twenty years, we present a comprehensive summary of determinants of successfully implementing HR analytics in organizations. Furthermore, using adaptive structuration theory, we propose a dynamic framework of HR analytics implementation, offering guidance to both HR practitioners and HR scholars. Finally, we provide a research agenda aimed at stimulating future research endeavors in HR analytics.
... Some of the studies covered in this systematic review offer conceptual contributions to the field of HRODM. The advantage of the conceptual studies is that their contributions are wide; they range from providing management tools (Davenport et al. 2010;Wiblen et al. 2010;Kapoor 2010;Snell 2011;Harris et al. 2011) to providing an ethical perspective to talent analytics (Burdon and Harpur 2014) and adopting a data-mining-based approach (Ramamurthy et al. 2015). Their contributions relate to various content areas in the HRODM field (Gilbert et al. 2008). ...
... Conceptual studies in HRODM yield a medium to high ROI because some propose new frameworks to analyze and implement organizational and employee data (Davenport et al. 2010;Wiblen et al. 2010;Garcea et al. 2011), while others discuss the roles and responsibilities of HR in this transformational era of technological change and globalization (Kapoor 2011;Snell 2011;Harris et al. 2011;Burdon and Harpur 2014). Some of the reviewed literature focuses on performance management (Schläfke et al. 2012;Ding and Zhang 2014;Church et al. 2015;Ryan and Herleman 2016) 3 and may provide a new method for managers to obtain insight into the effectiveness of employee performance and, ultimately, organizational performance (Ding and Zhang,p. ...
The purpose of this chapter is to provide a return on investment (ROI)-based review of human resources-based organizational data mining (HRODM). Organizational data mining (ODM) is defined as leveraging data mining (DM) tools and technologies to enhance organizational decision-making process by transforming data into valuable and actionable knowledge in order to gain a strategic competitive advantage (Nemati, Barko, J Comput Inf Syst 42(4):21–28, 2002; Ind Manag Data Syst 103(4):282–292, 2003). The objectives of this chapter are twofold: First, to offer an integrative analysis of the literature on the topic of HRODM to provide scholars and practitioners a comprehensive yet practical ROI-based view on the topic. Second, to provide practical implementation tools in order to assist decision makers concerning questions of whether and in which format to implement HRODM by highlighting specific directions as to where the expected ROI may be found. This chapter includes a four-step review and analysis methodology. The chapter provides theoretical and practical information for scholars and professionals aiming to study and adopt HRODM. The ROI-based approach to HRODM presented in this chapter provides a robust tool to compare and contrast different dilemmas and associated values that can be derived from conducting the various types of HRODM projects. A framework is presented that aggregates the findings and clarifies how various HRODM tools influence ROI and how these relationships can be explained. Two examples are presented to demonstrate HRODM implementation.
... In the pursuit of measuring the performance and impact of HRM on organizational performance (as posited by Kaplan and Norton, 1992;Becker et al., 2001a, b;Fitz-enz and Davison, 2002;Lawler et al., 2004), several studies (e.g. Harris et al., 2011;Mondore et al., 2011;Aral et al., 2012;Giuffrida, 2014;Pape, 2016;Angrave et al., 2016) have been undertaken both at conceptual and empirical levels. Some of the most studied topics in HR analytics are employee attrition (e.g. ...
... As per Falletta (2014), HR Analytics is a cluster of 18 HR practices and surveys. Similarly, Harris et al. (2011) posit that HR analytics consists of six analytical processes to analyze HR data, whereas Bassi (2011) and Pape (2016) argue that HR analytics is an evidence-based or data-based decision-making approach that uses a battery of tools and technologies. While reviewing the literature on HR analytics, Marler and Boudreau (2017) suggest; that HR analytics is an information technology-enabled data (quantitative and qualitative) driven decision-making approach. ...
Purpose
Human resource analytics (HRA) has developed as a new business trend and challenge, stressing the strategic relevance of human resource management (HRM) to senior management executives. HRA is a process that uses statistical techniques, to link HR practices to organizational performance. The purpose of this study is to carry out recent development in HRA, bibliometric analysis and content analysis to present a comprehensive account of HRA to fill the gap in the evolution and status of its research.
Design/methodology/approach
The study is based on the recent advances in HRA in terms of it evolution and advancement by analyzing and drawing conclusions 480 articles retrieved from the Web of Science (WoS) database from 2003 to March 2022. The methodology is divided into four steps: data collection, analysis, visualization and interpretation. The study performed a rigorous bibliometric assessment of HRA using the bibliometric R-package and VOS viewer.
Findings
The findings based on the literature survey, and bibliometric analysis, reveal the path-breaking articles, the prominent authors, most contributing institutions and countries that have contributed to the HRA scholarship. The results show that the number of publications has significantly increased from 2015 onwards, reaching a maximum of 101 journals in 2021. The USA, China, India, Canada and the United Kingdom were the most productive countries in terms of the total number of publications. Human Resource Management Journal , Human Resource Management , International Journal of Manpower , and Journal of Organizational Effectiveness-People and Performance are the top four academic outlets in the field of HRA. Additionally, the study identifies four clusters of HRA research and the knowledge gaps in HRA scholarship.
Research limitations/implications
The present study is based on the articles retrieved from the WoS. The study underpins HRA research to understand the trends and presents a structured account. However, the study is not free from limitations. It is recommended that future research could be undertaken by combining WoS and Scopus databases to have a more detailed and comprehensive view. This study indicates that the field is still in its infancy stage. Hence, there is a need for more arduous research on the topic to help develop a better understanding of this field.
Originality/value
The findings of knowledge clusters will drive future researchers to augment the field. The evolution of the four clusters and their subsequent development will fill the gaps in the literature. This study enriches the HRA literature and the findings of this study may assist academicians, researchers and managers in furthering their research in the identified research clusters
... These benefits encompass superior financial performance (Aral et al., 2012;Qureshi et al., 2020). That increased return on investment (Gurusinghe et al., 2021;Harris et al., 2011). All these efforts improved business outcomes. ...
Unexploited creative employees’ potential and country of origin (COO) effects are vital for organizational performance. HR analytics has emerged as a critical tool in HRM, shifting the focus from intuition to data-driven decision-making based on the COO effect. This study examined the impact of determinants of employee attitudes towards HR Analytics (technological readiness, competitive pressure, organization preparedness) on organizational career growth and the level of HR analytics with COO effects in the service sector. This study investigates the mediational role of employee attitudes between antecedents, organizational career growth, and the level of HR analytics. A survey (n=344) targeting HR managers of Pakistan's tourism and services industries was collected via a self-administered questionnaire. We applied PLS-SEM 3 software to analyze the collected data. Findings show that organizational preparedness, technological readiness, and competitive pressures are all directly and positively linked with both levels of HR analytics and organizational career growth. Also, employee attitudes toward HR analytics significantly mediate the proposed paths. This research contributes to understanding how HR analytics determinants, mediated by employee attitudes, foster organizational career growth and the level of HR analytics adoption. The results offer valuable insights for HR managers and top management to consider COO effects and workers' potential, emphasizing the importance of fostering positive attitudes towards HR analytics to maximize its impact on employee career development and adopting HR analytics.
... The first step in reforming retention is to highlight the areas of the organisation with high turnover rates or less sustained employment (Patil, 2021). HR analytics serve a purpose in determining who is the top performer within the company and which employees have the potential to lead, along with prioritising human resource retention by predicting turnover early (Harris, Craig and Light, 2011). Some of the the organisations have begun utilising predictive analytics to reduce turnover and enhance retention of their productive personnel, based on the effective implementation of machine learning algorithms. ...
In recent years, the term “HR analytics” and metaverse in HR have become prominent and have progressively been used in organisations as a systematic approach. Some organisations that have adopted the use of metaverse and analytics in their HR departments have been extremely successful. The current chapter strives to attain some objectives; namely, explore the meaning of HR analytics, its importance and benefits, the kinds of HR analytics, the meaning of metaverse, and the role of HR analytics and metaverse in employee engagement and employee turnover. This chapter will include a theoretical analysis to attain the mentioned objectives. The goal is to provide a holistic picture and discuss some aspects like definitions, importance, benefits, types, etc., under HR analytics and the aspects (meaning, role, and benefits).of the metaverse. The use of HR analytics and metaverse have reformed the performance of workforce and escalated efficiency in business, reforming the quality of recruitment, talent management, employee productivity, employee engagement, and diminishing employee turnover.
... Convergys deployed HR analytics to "calculate what employees value most" and generated a benefits plan to reduce attrition within the company with significant cost savings. As a result, Convergys estimated its attrition was reduced by 58,000 employees over four years and saved $57 million on recruiting and training costs (Harris and Light 2011). ...
Human resources are an organization’s most valuable asset. Human resource management (HRM) practices play a pivotal role in an organization's success. As opposed to other management functions of the organization, such as finance,
accounting, operations, and sales and marketing, the qualitative nature of the HR function has led HR managers to base human-capital decisions on intuition, assumptions, anecdotes, feelings and instincts. However, in this digital age,
organizations have realized the potential of analytics in the HR domain to make more data-driven, quantified and objective decisions. The use of HR analytics can transform the existing judgment-based HR function into a data-driven approach
and thus generate insights from data and metrics.
... Mountains of new data are suddenly available to help organisations answer key questions about their workforce and its needs. According to Harris et al. (2011), HR executives must use data to ask the hard questions that are vital for the organisation, instead of just reporting on the past performance of the organisation. The rise of digital collaboration platforms and news methods for harvesting data, along with new technologies and novel approaches for finding and managing talent, are redefining how organisations will build their workforces going forward (Leong, 2021). ...
This study explores the influence of data-driven talent management practices on eco-innovation in state-owned enterprises. A literature review was conducted to examine the role of people data, HR metrics, and people analytics in enhancing talent management practices and eco-innovation in state-owned enterprises. Findings revealed that people data is essential for making talent decisions and developing effective talent retention strategies. Additionally, two key drivers of eco-innovations were identified and grouped into external and internal drivers. External drivers include environmental regulations, competition pressures, and customers' demands for eco-friendly products and services. Internal drivers are organizational capabilities, technological capabilities, and corporate social responsibility. Therefore, data-driven talent development interventions are necessary for advancing organizational and technological capabilities to boost eco-innovation performance in state-owned enterprises.
... In the descriptive analytics stage, HRA answers questions related to what is currently happening in the organization and what has happened in the past. Descriptive analytics entails the use of metrics to describe the fundamental facts of the organization, and the use of internal and external data (benchmarking) to have established comparative parameters (Harris et al., 2011). It is important to highlight that this vision of the organization is fundamentally focused on the past and, therefore, the added value it provides for decision-making is limited. ...
In recognition of the growing interest in human resource analytics (HRA), this chapter provides an examination of five questions: what added value HRA offers to organizations, why HRA is necessary for strategic Human Resource Management (HRM), how HRA is carried out in practice, what are the main challenges that organizations must overcome to adopt HRA as a management practice, and finally, what are the ethical controversies that this discipline must address in the near future. HRA facilitates both predictive and prescriptive processes that require careful design and supervision. This chapter reviews the variety of theories that have been used to study the process of HRA adoption including diffusion of innovation, the LAMP model, and the knowledge discovery process (KDP). From these perspectives the authors construct an integrative strategic framework comprised of five building blocks: problem identification, data collection, data analysis, interpretation and communication, and action as well as three enabling dimensions: enterprise, leadership, and technology. The chapter concludes with a close examination of how HRA is undertaken in practice and the associated ethical implications.
... These developments led HR analytics to the centre-stage of institutional planning & monitoring. Rapidly changing business environment, ever evolving tools facilitating business excellence further created micro-components under the broader umbrella of HR analytics such as Talent analytics, attrition risk analytics, compensation analytics, response analytics, salary forecasting and behavioural analytics etc. (Harris, Craig, & Light, 2011). Bassi(2011) considers HR analytics as as a group of sophisticated solutions based on predictive models and what-if scenarios. ...
Application of digital technologies in HRM of Universities
... Predictive analytics in the form of data mining has been used in a variety of Human Resources operations, including predicting employee attrition, employee turnover, severance pay, compensation acceptance, and employee performance (Strohmeier and Piazza 2013). Buck and Morrow (2018), discuss the significance of objectively determining who the top performer within the firm is and who has the ability to lead, as well as prioritising their retention by anticipating turnover early (Harris et al. 2011). Employee attrition likelihood can be predicted by employing supervised analytical approaches. ...
In the era of data science and big data analytics, HR analytics can help organizations and their human resources (HR) managers to predict reason behind the employee exits and reduce attrition rate and employee turnover at an early stage. Organization invests lot of time and money in hiring and training their workforce. Thus, when they leave the job, the reduction of cost of capital is borne by the company. In this context, employee turnover presents a serious problem and a big peril for organizations as it affects not only their productivity but also their planning continuity. To overcome this, HR Analytics is the most important tool for organization to gain insights out of big data, collected from different sources (e.g. public social media, enterprise social media, Internet of Things etc.) to reduce employee turnover. From static to descriptive, descriptive to diagnostic, diagnostic to predictive, predictive to prescriptive type of HR analytics has come a long way. This research attempts to explore that organization apply different types of HR Analytics in different business strategy firms, with/ without the use of social media / enterprise social media (ESM) for the prediction of employee turnover. (Porter 1980) competitive business strategy includes cost leadership (CL) strategy, differentiator (DIFF) strategy and focus. By using statistical test chi-square, we conclude that there is significant difference between various strategy types and types of HR Analytics used in the organization for prediction of employee turnover with the use of ESM.
... Ejo-Orusa and Okwakpam (2018) found that HR practices and predictive HR analytics are significantly related to each other and suggested utilising predictive HR analytics in the HR processes to augment the performance of HR functions. Various organisations create dashboards for storing the HR data but don't use them to predict future tasks and measure outcomes (Harris et al., 2011). The analytical and statistical tools could provide analytical insights, forecast the trends and patterns, and make strategic decisions effectively at all organisation levels (Kapoor and Sherif, 2012). ...
... Sysco tracks three HR metrics: work climate and employee satisfaction, productivity (measured as employees per 100,000 cases of food sold), and retention. By measuring and analyzing these key metrics, Sysco was able to link effective HRM practices to business results (Harris, Craig, & Light, 2011). With HR Analytics, Sysco found that operating units (or companies) with highly satisfied employees have higher revenues, lower costs, superior customer loyalty, and increased employee retention. ...
Human resources (HR) analytics enables managers to replace decision-making based on anecdotal experience, hierarchy, and risk avoidance with higher-quality data-driven decisions based on data analysis, prediction, and experimental research. Human Resources analytics underscores the value of HR data by emphasizing how people create value for the organization, so that value can be captured and leveraged. The research discusses transition of HR analytics with a linear three-stage maturity model and explains progression from traditional HR analytics to new age HR analytics. Research provides various key requirements for successful deployment of HR analytics in the organizations. Human Resources analytics focus on various HRM activities including selection, appraisal, compensation, rewards, and development to maximize their impact on organizational performance. Research also provides various illustrations of HR analytics deployment across various industries.
This paper aims to examine the relevance and exhaustiveness of the People Analytics topic in scientific research. Multiple aspects of each publication are analysed and evaluated against determined scope and details about all retained publications are available as a supplement of this article for reference. This article displays the evolution of the topic over time based on the frequency of publications and popularity of this topic at Google Analytics, identified the most influential authors, and captured the context of the research based on the publications’ titles. The methodological approach (including hybrid non-empirical and empirical methodologies) and the most touched topic are assumed for each publication. Thus, based on the frequencies are visible most popular topics and areas. On the other hand, rarely found issues or disproportional frequency of a particular methodology provide a hint, where can be further research focused. Overall, this study confirms the increasing popularity of People Analytics in the business and scientific world and provides hints what areas, topics, and methodologies might be an exciting addition to existing research.
Strategic human resource management plays a crucial role in fostering long-term organizational performance through data-driven decision-making. Human Resource Analytics (HRA), using advanced business intelligence and integrated reporting tools, provides insights that optimize decision-making and strategy alignment. Despite its potential, the impact of HRA on organizational performance remains insufficiently explored. This study addresses this gap by examining the effects of HRA on organizational performance in Ethiopian organizations. A quantitative research design was employed, utilizing a survey method to collect data from 269 valid responses across 55 organizations in Addis Ababa, Ethiopia. Structural Equation Modeling (SEM) via SmartPLS 3.0 software was used for data analysis. The findings reveal that HRA significantly enhances organizational performance, with this relationship mediated by strategic alignment between HR and organizational goals. Additionally, firm size was found to moderate the impact of HRA on performance, with larger firms deriving greater benefits. The results suggest that HRA serves as a powerful driver of enhanced organizational performance, with larger firms potentially reaping even greater benefits from its implementation. These results also underscore the importance of strategic alignment in leveraging HRA for improved performance, particularly in the context of Ethiopian organizations, where HRA adoption is still evolving. This study offers practical implications for organizations seeking to enhance workforce management and performance through data-driven HR strategies.
Purpose
Human resource analytics (HRA) has recently received attention. However, its literature remains unknown and scattered due to both limited conceptual lenses and limited classification. So, this study is conducted to provide a comprehensive research analysis in this field.
Design/methodology/approach
Accordingly, 107 HRA studies, which were collected according to the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) in the last 14 years (2010–2023), were analyzed in the first using the theory-context-characteristics-methods step to examine the evolution of HRA research. The study also develops a conceptual framework based on socio-technical system theory that shows the antecedents and outcomes of HRA adoption. In the second step, fuzzy Delphi and fuzzy step-wise weight assessment ratio analysis techniques were used to validate and refine the antecedents and outcomes obtained from the first step in such a way that experts’ opinions can be used and the existing knowledge body can be expanded.
Findings
In total, 30 antecedents and outcomes were confirmed based on the consensus of experts. Senior management support was identified as the most important antecedent and achieving organizational strategic outcomes as the most important outcomes of HRA adoption.
Originality/value
The study maps the current state of HRA studies, identifies directions for future studies by providing a state-of-the-art review of theories, antecedents, outcomes, contexts and methodologies and proposes a framework for HR managers and professionals to apply.
Purpose
Labor process theory explains that employers prefer technology and systems over employees for efficiency gains. However, the mechanisms explaining the influence of technology and systems on different work-related employee outcomes are still a question mark. The purpose of this study is to test a mediation mechanism explaining how workforce analytics influence the work fulfillment experience of employees through work volition.
Design/methodology/approach
This study collected dyadic data from 55 HR managers and 350 employees serving in 55 different subsidiaries of Multinational Corporations in Pakistan.
Findings
The statistical results demonstrate that workforce analytics negatively affect fulfillment at work. However, work volition may reduce the negative relationship between workforce analytics and fulfillment at work. This study also found a significant but negative relationship between work volition and fulfillment at work.
Originality/value
This study found that integrating the use of workforce analytics with the work volition of employees is critical for positive employee outcomes.
This chapter examines internal marketing (IM) and human resource analytics (HRA), where the former refers to strategies used to market services to employees, and the latter is a tool to enhance human resource (HR) policies. Despite HRA's immaturity, the chapter aims to connect these two concepts through internal marketing analytics (IMA).
Human resource analytics (HRA) has helped organizations to efficiently deal with the challenges and obstacles of adopting and implementing it, thereby reaping its benefits. Such organizations lead by example, encouraging businesses in other organizations to move from intuition-based decision-making to data-based decision-making. HRA is an essential initiative every organization must take in the wake of digital transformation in a competitive business environment. This article aims to deepen our understanding of HRA, the driving forces for its adoption, its impact on business outcomes and the success factors and barriers encountered in adopting it. The study is based on the first two stages of the Diffusion of Innovations (DOI) Theory and follows a triangulation method of conducting a systematic literature review, deductive thematic analysis and interviews. The driving forces for the adoption of HRA include an increased interest in an evidence-based decision-making culture, a competitive landscape and complexity in managing human resources. Understanding business and stakeholder requirements, managerial buy-in and data hygiene are some of the major factors that can be attributed to the success of the adoption of HRA. Limited support from the top management, dearth of clean data, paucity of required analytical skills, inadequate budget, employee resistance towards adoption, issues of data security and the lack of advanced tools and technologies were found to be impediments, but when these were addressed, business outcomes greatly improved. This study proposes a concept map that aids the successful adoption and implementation of HRA and adds to the empirical evidence available in the literature.
The current study tries to explore the relationship between training of employees and job performance in retail stores in Industry 5.0. It introduces a conceptual framework designed to interplay between training initiatives and employee job performance. On the other hand, chapters provide insights for practitioners and
researchers in people analytics. Data analysis highlights the importance of employee performance in Punjab’s diverse retail landscape and also emphasizes the need for effective training to meet customer demand and seasonal market changes, ensuring consistent customer satisfaction. The literature review provides insights into employee training’s impact on job performance while focusing on the retail sector. Moderation analysis shows how training initiatives influence performance outcomes. In this chapter, the authors introduce a comprehensive conceptual framework that synthesizes literature and real-world illustrations and interplays
between training and performance variables within the retail sector of Punjab. The analytical approach is used to establish a basis for future analysis and investigations, including of the approaches used for data collection. The data has been analyzed using 138 responses. The smart pls has been used to generate model analysis. The chapter provides practical implications for a conceptual framework for retail organizations and offers recommendations for optimizing employee performance through training programs and strategic decision-making in people analytics. In this chapter, the authors explain the role of attrition and attraction and analyze the moderating effects of training initiatives on the ‘job performance’ of employees in Punjab’s retail stores, providing actionable strategies for organizations to optimize their workforce capabilities.
The present chapter explores the complex interactions between three revolutionary
programs that have altered the socio-economic landscape of India: Made in India, Skill
India, and Digital India. Introduced in 2014, Make in India aimed to establish India as a
global manufacturing powerhouse by prioritizing job creation, economic growth, and
international competitiveness. Introduced concurrently, Skill India recognized the need for
a skilled labor force to maneuver through a rapidly changing economy, with the goal of
reducing unemployment and empowering individuals across various sectors. In 2015,
Digital India began a comprehensive digital transformation journey, with the goals of
bridging the digital divide, improving governance through technology, and promoting a
digitally inclusive society.
The beginning, effects, and mutually beneficial interaction between these initiatives are all
covered in this chapter. It looks at Digital India's revolutionary effects on governance and
society, the achievements and difficulties faced by Made in India in promoting
manufacturing excellence, and the function of Skill India in empowering the workforce. A
story of advancement, ingenuity, and shared aspiration unfolds as the projects blend
together, providing a clear image of India's path to becoming a major player on the
international stage in the twenty-first century. This investigation provides a thorough grasp
of the individual and collective contributions of these transformative initiatives to India's
dynamic growth story by addressing the complexities of policy, success stories, current
obstacles, and the future paths of these activities.
Developments in the field of talent management have been noteworthy for some time now. The talent management systems (TMS), which were an offshoot of the emergent needs, represent an integrated set of analytical tools to create and manage talents. Following the narrative review technique, this paper discusses the academic literature on talent management and systems. The findings unveil the complexity of talent and talent management, the rise of talent analytics and their contributions to organizations. Growing interest in information systems in talent management was evident; however, research linking TMS to the organization and contexts was limited. To visualize this linkage, we adopt a systems perspective, leveraging the work system framework (WSF). Pivoted on the WSF, we identify several research opportunities in which TMS is positioned as the core of the investigations, which could serve as useful contributions to the related domains.
Although research identifies analytical and storytelling skills as the two broad human capital inputs required to perform people analytics, further research is required to better understand how People Analysts that is, the enactors of people analytics, perceive the impact of these skills on their performance. Accordingly, this study draws on the human capital resource (HCR) and HCR complementarity frameworks to investigate the individual and collective impact of analytical and storytelling skills on People Analysts perceived job performance. A mixed‐method sequential explanatory research design is adopted, finding mixed results. Consistent with existing research, results from Phase 1 find People Analysts perceive storytelling skills to be positively associated with their job performance. However, contrary to existing claims, the findings reveal that analytical skills are only perceived to be significant in influencing People Analysts job performance when combined with storytelling skills, supporting a complementarity HCR relationship. To further explain the findings from Phase 1, Phase 2 involved collecting data from 50 people analytics professionals via semi‐structured interviews. Results from the thematic analysis reinforce the survey findings while also illustrating that People Analysts perceive the complementarity relationship between analytical and storytelling skills as important for improving job performance. Accordingly, we argue that debate in this area should be reframed to acknowledge the necessity of complementarities in building people analytics capabilities.
Purpose: This study explores the different dimension of sustainable practices and observes it impact on the firm performance specifically in Indian Energy sector.
Methodology: The present study is conducted on the sample of the twelve-firm listed in BSE
100; data has been extracted from CMIE. Panel data regression has been used to check the effect of sustainable practices on firm performance.
Findings: In this study, it was found that investing in sustainable practices has a significant impact on firm performance, especially market-based parameter get improves.
Implications: The research continues to determine the overall impact of sustainable practices in energy sector and their impact on firm performance. Future research could describe the impact of sustainability on cost savings in energy sector.
Purpose
This paper aims to propose a research model with eight constructs, i.e. BDA leadership, BDA talent quality, BDA security quality, BDA privacy quality, innovation, financial performance, market performance and customer satisfaction.
Design/methodology/approach
The research model focuses on whether (1) Big Data Analytics (BDA) leadership influences BDA talent quality, (2) BDA talent quality influences BDA security quality, (3) BDA talent quality influences BDA privacy quality, (4) BDA talent quality influences Innovation and (5) innovation influences a firm's performance (financial, market and customer satisfaction). An instrument was designed and administered electronically to a diverse set of employees (N = 188) in various organizations in the USA. Collected data were analyzed through a partial least square structural equation modeling.
Findings
Results showed that leadership significantly and positively affects BDA talent quality, which, in turn, significantly and positively impacts security quality, privacy quality and innovation. Moreover, innovation significantly and positively impacts firm performance. The theoretical and practical implications of the findings are discussed. Recommendations for future research are provided.
Originality/value
The study provides empirical evidence that leadership significantly and positively impacts BDA talent quality. BDA talent quality, in turn, positively impacts security quality, privacy quality and innovation. This is important, as these are all critical factors for organizations that collect and use big data. Finally, the study demonstrates that innovation significantly and positively impacts financial performance, market performance and customer satisfaction. The originality of the research results makes them a valuable addition to the literature on big data analytics. They provide new insights into the factors that drive organizational success in this rapidly evolving field.
High performance of new hires is of imminent interest to organizations. Therefore, understanding antecedents that enhance job performance among new hires would be of interest to research and practice. However, there are contradictory and limited studies focusing on relevant traits of new hires that improve on-job performance. Drawing on Human Capital Theory, we argue that job applicants demonstrating humility, accompanied by interpersonal understanding, self-confidence, and flexibility deliver higher on-job performance. We find that humility is a significant predictor of job performance through a longitudinal field survey spanning 16 months, using multisource data of 205 real job applicants and their performance ratings, analyzed using PLS-SEM: since it allows the researchers to examine the relationships between multiple latent variables (i.e., humility, interpersonal understanding, self-confidence, and flexibility) and a single observed variable (i.e., new hire performance) in a single model. Further, humility wholly mediates the effect of interpersonal understanding, self-confidence, and flexibility on new hire performance.
Human resources is an abundantly disregarded field by and large when contrasted with different business verticals; however, the right fit candidates are required for each business unit for better outcomes. Be that as it may, after the recession time frame of the latter half of first decade of the 21st century, the majority of the associations perceived the need of evidence-based human resource management. To come up with better decision making in the field of HR, evidence-based HRM driven by information and data should rehearse with analysis, making choices, and critical thinking. Human capital analytics transforms this information into significant understanding which reveals deeper insights. HR analytics is the utilization of systematic procedure to determine the HR issues. Starting from discovering best fit candidate till his retention, businesses are taking a stab at a lot of keen choices. The choice of selection in HR for the majority depends on trust unlike other verticals in the organisations.
The role of human resource management in organizational performance has been an area of interest for decades. There is an ongoing change in the field with the advent of digitalization and analytics. HR professionals have to face the new realities and be acquainted with the rapid developments for competitive edge. Therefore, this paper extends an understanding on the aspect of analytics with respect to the field of Human resource management. The research draws the reader's attention towards the necessity of HRA, along with the benefits. Also, the reasons for the sluggish growth of HRA has been discussed which are further backed with recommendations. The insight not just provides managerial implications for restructuring of organizations but also serves as a basis for future research and development.
In the competitive world, organisations are facing many pressures that demand organisational excellence. This requires evidence-based decision-making associated with employees and businesses in a cost-effective manner, which is possible through HR Analytics (HRA). The use of HRA is transforming the HR landscape. Emerging new technologies require Human Resource Development (HRD) teams to respond to the changing needs so that organisations can survive and thrive in the intense competitive era. Based on the level of analytics maturity, organisations expect the HR team to have advanced beginner to expert knowledge of analytics skills and tools. Reskilling and upskilling employees with new technologies and skills have become imperative for HRD teams. While buying or stealing an employee from outside the organisation may be helpful in extreme conditions, building and borrowing employees from inside, seem much more helpful for the long-term benefits. The HR function in many organisations has been slow to adopt this HR analytics innovation. This paper sheds light on the reasons for the slow adoption of HR Analytics and provides inputs to HR development professionals of early majority and late majority adopting organisations in terms of how to overcome the challenges and gear up for effective HR Analytics adoption and implementation.
Abstract:
Human Resources Analytics (HR Analytics) has an increasing importance in Human Resources (HR) literature and in practitioners’ environments. Contributing to this, there are pressures addressed by advances in processing and analysis capacities that Information Technology (IT) currently offers and requirements for HR and business strategies to be connected. The literature points out factors that need to be better explored so the development of the theme can be deepened in academic and professional circles, such as the contribution of analytical knowledge in HR, efficiency in the application of IT resources and connection of the strategic formulations of HR, business and IT. These factors seem connected to how HR intelligence is developed through HR Analytics, a scenario in which knowledge creation and IT alignment play a central role. Through case studies, this research identifies elements of the knowledge creation process and the alignment between IT and HR in Brazilian companies that practice HR Analytics and points out (i) possibilities of standards in the maturation paths of this activity and (ii) differences between the ways in which HR leaders and Business Partners seek to create value through HR Analytics.
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Resumo:
A atividade de Human Resources Analytics (HR Analytics) vem ganhando importância na literatura de Recursos Humanos (RH) e no meio profissional. Contribuem para isso pressões originadas pelos avanços de capacidade de processamento e análise que Tecnologia da Informação (TI) oferece atualmente e exigências para que as estratégias de RH e negócios estejam conectadas. A literatura aponta fatores que precisam ser melhor explorados para que o desenvolvimento do tema seja aprofundado nos meios acadêmico e profissional, como aporte de conhecimento analítico no RH, eficiência na aplicação dos recursos de TI e conexão das formulações estratégicas de RH, de negócios e da TI. Esses fatores parecem ligados a como se desenvolve a inteligência de RH através de HR Analytics, cenário em que a criação de conhecimento e o alinhamento com TI ocupam papel central. Por meio de estudos de caso, esta pesquisa identifica elementos do processo de criação de conhecimento e do alinhamento entre TI e RH em empresas brasileiras que praticam o HR Analytics e direciona (i) possibilidades de padrões nos caminhos de maturação dessa atividade e (ii) diferenças entre as formas como lideranças de RH e Business Partners buscam criar valor através de HR Analytics.
Effect of Industrial revolution on marketing and managing customers
Digitalization across a range of industry and service sectors is transforming the workplace and human resources. The adoption of disruptive technologies associated with the Fourth Industrial Revolution or known as Industry 4.0 is reshaping the way people work, learn, lead, manage, recruit, and interact with each
other. The aim of this book chapter is to contribute to the theoretical development of human resource management (HRM) in the context of Industry 4.0, promoting directions for the sector and the HRM professionals, organizations, and the
workforce that are required to face the challenges of Industry 4.0. This book chapter promote insights on digital trends resulting from Industry 4.0 affect the field of human resource management, HRM Industrial Revolutions, interaction of
digitalization in HR for the evolution of the digital age, competences needed in the Industrial Revolution in order to become more productive, human and digital.
Over the past decade, the use of big data has been on the rise reasons being the increasing popularity of companies' usage of big data, such as the cost of storing and producing the data. With increasing literature indicating a positive impact of the latter on organizations, recent research is calling to understand how big data and its related analytical techniques can support human resource functions. Talent analytics (TA) is a sub-category of business analytics that uses methodologies to analyze patterns among employee data to efficiently manage the workforce and advance change including career progression. Despite the promising benefits of TA scholars call for additional research on areas related to TA. Therefore, the purpose of this chapter is twofold. First, to discuss the challenges HR managers face when dealing with talent analytics. Second, to offer practical solutions that may facilitate the efficient use of talent analytics.
In the information era, leveraging the power of the internet of
things and knowledge elements, the customer comes to the
purchasing table well prepared. The brands are challenged to
upkeep the customer requirements and create delight. There is
a lot of buzz on how content marketing can influence target
customer groups. This chapter provides a perspective of the
fuelling rise of visual communication strategies adopted by
brands in creating experiential engagement. A glimpse into the
cosmetic brands' digital engagement perspective is presented.
There is presently a lack of content-focused research on the
application of these Industry 4.0 cutting-edge technologies in
environmentally friendly production. To clarify how these
revolutionary technologies could affect the economic, social,
and environmental aspects of the manufacturing industries, a
thorough literature review was done.
Human capital analytics transforms this information into significant understanding which reveals deeper insights. HR analytics is the utilization of systematic procedure to determine the HR issues. Starting from discovering best fit candidate until his retention, businesses are taking a stab at a lot of keen choices. The choice of selection in HR for the majority depends on trust and dislike in other verticals in the organisations. In the author's analytical view, human resource is an abundantly disregarded field by and large when contrasted with different business verticals, however the right fit candidates are required for each business unit for better outcomes. Be that as it may, after the recession time frame of later half of first decade of the 20th century, the majority of the associations perceived the need of evidence based human resource management. To come up with better decision making in the field of HR, evidence based HRM driven by information and data should rehearse with analysis, making choices, and critical thinking.
Purpose
The growing and sustaining needs of today’s globalized organizations lead to a quest for competitive advantages through 3R’s: Reframing, Repositioning, and Reinventing. The current research suggests that these mutations initiate changes and provocations in almost every segment of working culture, fostering mutation for the complete organization leaving employees to accept and act. The study aims to focus on the employee experiences and the implications during the acceptance and adoption of HR analytics.
Design/Methodology/Approach
Using a qualitative approach, a life-world phenomenology study with 22 employees associated with HR activities or decision-making process for employees and practicing change management were interviewed for 24 – 26 weeks before and after adopting HR analytics. The interviews were analyzed and texted, which was directed at evaluating qualitative meanings through a systematic process. It is then clustered and analyzed for defining themes and the purpose of the phenomenon.
Results
The study with the sample shows that HR analytics adoption and acceptance is not a cakewalk. The organization has to prepare its employees to adjust to new technology by supporting, encouraging, training, b uilding the right attitude to bring change, and leading in an impactful manner.
Conclusion
The adoption and acceptance of HR analytics among its users have various steps and criticalities. The study was conducted to highlight the emotions of employees during the transformative move toward technology adoption and usage that will help the organization develop the right model for initiating the use of HR analytics in the working culture. It provides insights and guidance for promoting ease of acceptance and adoption of HR analytics among its users.
This book provides a comprehensive guide to Industry 4.0 applications, presenting not only implementation aspects but also a conceptual framework for the design principles of these applications. Additionally, it discusses the new business models, new managerial skills, and workforce transformation for decision makers that need to be teaching both existing and future leaders and reflected in Industry 4.0 for the management profession. The book then examines the eminent technological advances that form the pillars of Management 4.0 and explores their potential technical and economic benefits through real-world examples. This book covers various issues related to the successful management of emerging technologies for the first time.
Human resource activities extend beyond hiring and orientation. With the advent of HR analytics, the human capital industry has seen a profound transformation. Employer turnover analysis, talent supply chain optimization, decision-maker insight extraction, and other tasks are all accomplished by organisations using HR analytics.
Environmental management is considered an important parcel of Sustainable development set by the United Nations (UN). Accordingly, organizations today are looking for innovative ways to improve their environmental management. As part of environmental management practices is the Green HumanResource Management (Green HRM). The current paper is intended to respond to the challenge of achieving sustainable performance by organizations whereby Green HRM contributes to the development of circular economy (CR) business models. First, the current paper describes the environmental dimension of sustainable development. Then, it highlights the major role Green HRM plays in achieving sustainable and environmental performance; thus helping organizations to capture the potential interface between Green HRM and Circular Economy (CE). In the end, an explanation of how HR analytics and related HR matrices are utilized to improve strategic decisions related to Green HRM, thus improving the environmental organizational performance.
In today‟s data driven world, HRM strategies are changing in terms of HR metrics and HR analytics being used in the organization for better decision making. This digitalization will help the organization to become more reliable towards data driven decision making rather than intuition. Which can assist organizations to take up present strategic and operational data and turn it into an effective approach to the HR problems of tomorrow. HR analytics has become a significant instrument for achieving success; taking advantage of present data to anticipate future ROI as a source of strategic advantage. The current study is an attempt to give an overview of developments in HR analytics at present by briefly focusing to identify the shift in the HR roles in different perspective. This paper also discusses the importance of understanding the implications of HRA. In addition, article also highlighted the future need for HR analytics, befitting for today‟s world of business industry.
For more than two decades, academicians and practitioners have been theorising the role of people analytics in enhancing the efficiency, effectiveness and impact of the human resource (HR) management function, thereby prescribing people analytics as an enabler of HR strategic partnership. The objective of this study is to identify and synthesise existing literature on people analytics and its conceptualised efficacy. This is done with a view to assess how and why people analytics enhances HR as a field and elevates it to a function of strategic significance. The study uses the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) framework for systematic literature review to address the research objective. A total of 90 articles on the subject are identified majorly from Scopus. The analysis of this literature reveals four significant themes underscoring the role people analytics can play in enabling HR as a field and function. These include the following: (a) application of people analytics leads to greater vertical, horizontal and external alignment of the HR function; (b) people analytics facilitates better integration of HR management with the organisation’s strategic planning process; (c) people analytics aids the demonstration of causal links between HR management and business performance; and finally (d) people analytics endows the field with scientific rigour, consistency and resulting credibility. The study contributes to the existing knowledge on people analytics and HR strategy linkage by building a foundation and offering specific propositions for empirical enquiry relating the two. The significance of the study also emanates from its focus on the efficacy of people analytics which is being viewed as an HR approach with immense potential.
The behavior of employees has important effects on the operating expenses of organizations in both the private and public sectors. While these effects are not widely known (or even, in some cases, appreciated by employers), they are, nonetheless, quite substantial. This article considers some key areas where the behavior of employees has a meaningful financial impart on their organizations. The areas it examines are: the effects of high- versus low-wage employment strategies on employee turnover and productivity; the importance of employee retention; absenteeism and presenteeism; healthcare costs associated with unhealthy lifestyles; employee attitudes; payoffs from training through development programs; and payoffs from the use of valid staffing procedures. While these areas are by no means exhaustive, they are representative of those that most employers encounter. This article also presents strategies for employers to improve the performance of their organizations by managing people wisely and illustrates its analysis through a comparison of the employment strategies of two well-known retailers, Costco and Wal-Mart's Sam's Club.
Companies simply can't afford to have "A players" in all positions. Rather, businesses need to adopt a portfolio approach to workforce management, systematically identifying their strategically important A positions, supporting B positions, and surplus C positions, then focusing disproportionate resources on making sure A players hold A positions. This is not as obvious as it may seem, because the three types of positions do not reflect corporate hierarchy, pay scales, or the level of difficulty in filling them. A positions are those that directly further company strategy and, less obviously, exhibit wide variation in the quality of the work done by the people who occupy them. Why variability? Because raising the average performance of individuals in these critical roles will pay huge dividends in corporate value. If a company like Nordstrom, for example, whose strategy depends on personalized service, were to improve the performance of its frontline sales associates, it could reap huge revenue benefits. B positions are those that support A positions or maintain company value. Inattention to them could represent a significant downside risk. (Think how damaging it would be to an airline, for example, if the quality of its pilots were to drop.) Yet investing in them to the same degree as A positions is ill-advised because B positions don't offer an upside potential. (Pilots are already highly trained, so channeling resources into improving their performance would probably not create much competitive advantage.) And C positions? Companies should consider outsourcing them--or eliminating them. We all know that effective business strategy requires differentiating a firm's products and services in ways that create value for customers. Accomplishing this requires a differentiated workforce strategy, as well.
Consider a recent quote from the Wall Street Journal (July 14, 2003): “It’s no longer about what you own or build; success is hinged to the resources and talent you can access.” Unfortunately, recent statistics indicate that American workplaces are not doing a very good job of managing the talent they currently have. Thus
Only 14 percent of American workers say they are very satisfied with their jobs.
Twenty-five percent say they “are just showing up to collect a paycheck” (The Stat 2005).
From January 2004, to January 2005, 24 percent of American workers voluntarily quit their jobs, a 13 percent rise since the previous year. That figure varies widely by industry, though, with relatively low rates in manufacturing and transportation (roughly 15 percent), and relatively high rates in leisure and hospitality, retail, and construction industries (ranging from about 25–45 percent) (Employment Policy Foundation 2005). To appreciate what that means for an individual firm, consider the number of people Wal-Mart employed at the end of 2004—1,600,000 people (Fortune 500, 2005). Its annual employee turnover rate is 44 percent—close to the retail industry average (Frontline 2005). Each year, therefore, Wal-Mart must recruit, hire, and train more than 700,000 new employees just to replace those who left.
Women now outnumber men in managerial and professional jobs, yet many leave even blue-chip employers because they do not feel valued, their companies do not offer flexible-employment policies, or their work is not intellectually challenging. Rather than leave the workforce, most resurface at companies that offer more progressive policies (Deutsch 2005).
In the 1980s, a combination of economic and political factors led to the demand for greater accountability in all functional areas of business, including HR. The massive restructuring of organizations in the 1990s led to the outsourcing of many of HR's basic transactional functions. In order for HR to add value to an organization, it must have several key competencies. “Influence in leadership is all about understanding the business well enough so that what you recommend adds value to the organization,” says one HR vice president. This article shows how this is done through the example of SYSCO Corporation. © 2005 Wiley Periodicals, Inc.
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