Pauli Dahlbom, Noora Siikanen, Pasi Sajasalo and Marko Jarvenpää
The purpose of this paper is to focus on how the HR function takes advantage of human resource analytics (HRA), including big data (BD), and discuss factors hindering HRA and data…
Abstract
Purpose
The purpose of this paper is to focus on how the HR function takes advantage of human resource analytics (HRA), including big data (BD), and discuss factors hindering HRA and data utilization. Moreover, the authors discuss the implications of the HRA-induced role transformation of the human resource (HR) function.
Design/methodology/approach
This is an explorative case study based on qualitative interviews in nine leading Finnish companies.
Findings
The results indicate that both technical and human obstacles, operating with very basic HR processes and traditional information systems and poor data quality, hinder adoption of advanced HRA. This, combined with lacking skills in analytics and business understanding, inability to go beyond reporting, misconceptions related to BD and traditional compliance-oriented HR culture pose further challenges for the data analytics capacity and business partner role of the HR function. Senior executives expect no significant advancements of HRA, while HR professionals saw potential value in BD, although skepticism was not uncommon. The results point toward a need for increased cooperation with data analysts and HR professionals in provision and understanding the HR-related data for business-related decision making. Furthermore, cultural change and organizational redesign may be called for, in addition to overcoming technological obstacles related to BD, for it to have an impact on HR practices. HRA utilization and role transition of the HR function seem closely related and this transformation can be mutually reinforcing.
Originality/value
This study provides and theorizes explorative data on HRA within a group of some of the largest Finnish companies, pointing toward an immature state of the art in BD and HRA utilization and there being a relationship between HRA and the role transition of the HR function in organizations.
Details
Keywords
Rukma Ramachandran, Vimal Babu and Vijaya Prabhagar Murugesan
This systematic literature review aims to explore the adoption, global acceptance and implementation of human resources (HR) analytics (HRA) by reviewing literature on the…
Abstract
Purpose
This systematic literature review aims to explore the adoption, global acceptance and implementation of human resources (HR) analytics (HRA) by reviewing literature on the subject. HRA adoption can assist HR professionals in managing complex procedures and making strategic human resource management (SHRM) decisions more effectively. The study also aims to identify the applications of analytics in various disciplines of management.
Design/methodology/approach
The review is conducted using a domain-based structured literature review (SLR), emphasizing the diffusion of innovative thinking and the adoption process of HRA among early adopters. The philosophical stances are analyzed with the combination of research onion model and PRISMA protocol. Secondary data are gathered from published journals, books, case studies, conference proceedings, web pages and media stories as the primary source of information.
Findings
The study finds that skilled professionals and management assistance can significantly impact adoption intentions, enabling professionals to deal with analytics. The examples and analytical models provided by early adopters allow managers to manage complex processes and make SHRM decisions.
Research limitations/implications
The study suggests that the lack of use of quantitative techniques is a key limitation and should be considered in future studies. Despite the rise in the number of research papers on HRA, its application in the workplace remains limited.
Practical implications
This research can assist managers in implementing HRA and help resolve complex and inefficient processes, making SHRM decisions.
Originality/value
This study adds to the existing body of knowledge on how HRA can aid a company's efficacy and performance and can be considered one of the first to link adoption and HRA.