ABSTRACT

Business facts and data that support these goals are a must for the corporate strategic plans.
Data-driven decision making, evidence-based initiatives, prioritizing the effects of HR
investments, and improved company value and performance are all promised benefits of HR
analytics. This study seeks to understand HR professionals do not employ HR analytics to
improve corporate performance and preserve a competitive edge. HR analytics doesn't collect
data about how your employees are performing at work, instead, its sole aim is to provide
better insight into each of the human resource processes, gathering related data and then
using this data to make informed decisions on how to improve these processes. The
secondary data research design is employed. The adoption of HR analytics by human
resource professionals at the individual level is the main topic of this study. The study design
is a secondary data. This paper's major goals are to comprehend the significance of HR
analytics and to learn more about the obstacles that prevent HR professionals from fully
implementing HR Analytics.
Keywords: Human resource analytic, HRA adoption intention, HRA adoption behaviour

CHAPTER-1
Introduction
Globally, markets have become highly competitive with all-round and growing innovations.
Those firms which are capable of adapting themselves to the everchanging business
environment can only survive in this scenario. Organisations are heralding that the human
resources are the critical capital that they must bank upon (Lahey, 2014). The unique strength
of an organisation lies in the quality of its human resources, which determines the
organisational effectiveness. Given the critical role played by HR (human resources) in
executing strategies that benefit the organisation, their role has become significant (Lawler,
2003). HR and line management are facing day to day challenges due to the dynamics of
globalisation. They are compelled designing and implementing suitable HR policies to keep
check on costs while attracting and retaining highly competent talent. In these 3 processes,
human resources have become a strategic asset. Hence, organisations have to focus on
adequately compensating the workforce and achieve their abilities for having the highest
levels of productivity. At the same time, organisations need to ensure that revenue and
profitability targets are met. The demand for Human Resource (HR) Analytics at the
workplace has never been so high as in recent times (Lahey, 2014) because everyone
recognises that talented employees are critical to realising the objectives of the organisation.
Measurement of human resource activities which were once unheard of has become common
today. It is no surprise that organisations are increasingly using HR data and applying
analytics. Sant (2016) has considered that through HR analytics, data related to human
resources is subjected to advanced techniques of data mining and business analytics (BA).
HR analytics integrates critical data associated with the functional activities of HR from
across the spectrum of the enterprise. It transforms bundles of data into practicable, and
implementable insights. HR Analytics offers organisations the one comprehensive and
evidence-based assessment of its human resource policies and employee effectiveness.
Several tools and technologies are applied in HR analytics, from mere descriptive figures of
HR to an advanced level of futuristic prediction. A 2018 LinkedIn study reported that in
India, there had been a phenomenal growth of specialists in HR analytics to the tune of 77 per
cent during the recent past (Bhattacharyya, 2018). The study also indicated that 14 per cent of
the jobs under the HR function in India are analytics-based. A significantly high number of
HR functions such as talent planning, retention, training, engagement, diversity, benefits, and
well-being are now using analytics in a big way. HR analytics, as a data-driven function, is
considered to be crucial to handle the strategic issues of the organisation. India is geared to
turn into a global economic superpower shortly. With the rise in industries, services, and
technologies, there is a more significant shift in technology adoption that could tackle
strategic issues. It is imperative that human resources are the epicentre for all kinds of
organisational transformation. Thus, a more significant burden is to be borne by the HR
professionals dealing with these resources. HR analytics can witness success only when the
HR professionals show readiness to take up the cause.
Objectives
1.To identify the current level of adoption of HR Analytics in organisation across various
industries.
2.To analyse the types of HR Analytics and metrics commonly used by organisation
employing HR Analytics.
3. To investigate the challenges faced by organisations in implementing HR Analytics and
proper potential sustainability.
Need
1. HR Analytics is emerging as a result have capability for organisations. The readiness of
HR professional is virtual for implementing HR Analytics.
2. The project aims to understand the adoptions of HR Analytics by applying the unified
theory of Acceptance.
3. HR professionals from various industries were approached to study the variables of
technology adoption in light of HR Analytics.
4. The study’s finding show a significant relationship between performance expectancy,
social influence, and facilitating conditions on adoptions of HR Analytics.
5. This project assumes value by providing insights into the approaches to be followed by
organisations towards the speedy adoption of HR Analytics by HR Analytics.
Scope
1. Implementation Trends: Investigate the current trends in the adoption of HR analytics
across industries.
2.Organizational Impact: Assess how HR analytics influences decision-making,
organizational effectiveness, and strategic planning.
3. Performance Evaluation: Analyse how analytics is employed to assess individual and team
performance, driving performance improvements.
4. Workforce Planning: Study the role of HR analytics in predicting future workforce needs
and facilitating strategic workforce planning.
5. Data-driven Decision-Making: Investigate how organizations use HR analytics to make
informed decisions and drive business outcomes.
Problem of statement
The adoption and application of HR analytics are pivotal for organizations aiming to optimize
their human resources and stay competitive. However, a significant gap exists between the
potential benefits of HR analytics and the actual implementation in many organizations. This
study seeks to investigate the challenges hindering the widespread adoption and effective
utilization of HR analytics, as well as the opportunities that can be harnessed for strategic
human capital management.
Limitations
Sample Bias: If the study relies on a specific industry or company size, findings may not be
generalizable to diverse contexts.
Data Quality: Inaccurate or incomplete HR data can affect the reliability of analytics,
potentially leading to flawed conclusions.
Evolution: Rapid changes in HR technology may render some findings outdated, especially
if the study does not consider the latest tools and methodologies.
Human Factor: Behavioural aspects and resistance to change among employees and HR
professionals may not be fully captured, impacting the study's applicability.
External Factors: Economic, legislative, or societal changes can influence HR practices, and
the study might not account for these external variables.
 CHAPTER -2
REVIEW OF LITERATURE
1. Employees' adoption of HR analytics– a theoretical framework based on career
construction theory
AUTHOR:Kiran dhankar , abhishek singh
Source : https://doi.org/10.1108/EBHRM-02-2022 0053
Purpose Drawing upon the career construction theory, the present study aims to propose and
test a mediation model exploring the association among technology readiness, adoption of
human resource (HR) analytics by HR professionals, and organizational career growth.
Design/methodology/approach A survey has been conducted to collect data from HR
professionals working in various industrial sectors in India. The data collected is analysed for
mediation using SPSS PROCESS Macro (Model 4). Findings The study provided evidence
about the mediating role of individual adoption of HR analytics between technology
readiness (motivators, inhibitors) and organization career growth (career goal progress,
professional ability development, promotion speed and remuneration growth).
2. To study the adoption and application of HR analytics among HR professionals in the
organizations Author : Dr. Sakshi Mathur
Source : https://doi.org/10.33545/26175754.2023.v6.i1c.
210 Business facts and data that support these goals are a must for the corporate strategic
plans. Data-driven decision making, evidence-based initiatives, prioritizing the effects of HR
investments, and improved company value and performance are all promised benefits of HR
analytics. This study seeks to understand why Saudi HR professionals do not employ HR
analytics to improve corporate performance and preserve a competitive edge. The descriptive
survey research design is employed. The adoption of HR analytics by human resource
professionals at the individual level is the main topic of this study. The study design is a
descriptive survey.
3. Author : Mr. Hritik Kale, Dr. Dilip Aher, Dr. Nilesh Anute
Source : https://www.allfinancejournal.com/
The purpose of this essay is to examine the relationship between organizational sustainability
and the effects of HR analytics on HRM procedures. The study used constructs for
organizational sustainability, HR analytics, and HRM to evaluate and analyse its hypotheses.
The research was principally supported by data, which were obtained from the intended
respondents-HR personnel of particular Indian IT companies-via online questionnaires. This
study made use of AMOS and SPSS. A comp lately new methodological technique was used
in this investigation. The method's viability and scalability were proven
4. Author : Chandrika, K & Satharasinghe, Iruni. (2021)
Source : https://www.allfinancejournal.com/
This article's goal is to undertake a systematic evaluation of the empirical data from a few
key journal papers on the adoption of human resource analytics. Previous studies have looked
into the ideas of business analytics, business intelligence, big data in relation to HR analytics,
as well as literature on the adoption of new technologies. 20 review papers that are pertinent
to the topic of HR analytics adoption were primarily searched, and the aforementioned
articles were chosen based on how extensively HR analytics were treated in each article.
Major databases like Emerald Insight, Taylor & Francis, Wiley Online, Science Direct,
JSTOR, and Sage were used to extract a few key articles. Results show that corporations as
well as HR professionals are largely responsible for using HR analytics.
5. Opportunities and Barriers in the practice of Human resource analytics
Author : Tobias Rex, Sudeshna Bhattacharya, Kanimozhi Narayanan
Source : https://doi.org/10.1108/978-1-83867-223-220201004
Human resource analytics (HRA) is a practice that is emerging within the human resources
function. This chapter aims to provide an overview of the knowledge that currently exists
about HRA and to identify facilitators and restraints of using HRA. Based on both emerging
trends in the literature and in-depth interviews with key practitioners in the field, the authors
deduce recommendations for organisations to effectively employ HRA. The analysis shows
that HRA is ready to add value towards organisational effectiveness, although barriers exist in
realising its potential for the same.
6. HRM and workplace innovations: formulating research questions
Author : Greg J. Bamber, Timothy Bartram, Pauline Stanton
Source : https://www.researchgate.net/publication/
The purpose of this paper is to review the roles of human resource management (HRM)
specialists in the contemplation and implementation of innovation in employing organisations
and workplaces. he authors propose six research questions. First, are HRM specialists
analysing relevant trends and their implications for the future of work and the workforce?
Second, are HRM specialists enabling employing organisations to identify and enable
innovative ideas? Third, to what extent are HRM specialists leading partnership arrangements
with organised labour? Fourth, what is the role of HRM specialists in creating inclusive work
environments? Fifth, how should HRM specialists change to foster enterprise performance,
intrapreneurship, agility, creativity and innovation? Sixth, to what extent is there an HRM
function for line managers in coordination with HRM specialists in engendering innovation
around “change agent” roles?
7. Predictive HR analytics and talent management: a conceptual framework
Author : Bhadra J. H. Arachchige, Dushar Dayarathna
Source : https://www.tandfonline.com/
Digitisation, new technologies and artificial intelligence demand organisations for new ways
of working with a different skill set to accomplish strategic objectives. HR analytics is the
scientific solution enabling organisations to make significant human capital and strategic
business decisions and thereby gain a competitive advantage. However, theory-based
relationships in HR analytics adoption is meagre. Further, there is a paucity of HR analytics
literature on the role of contextual factors that affect organisations in building predictive HR
analytics (PHRA) capability.
8. HR analytics: The onto-epistemology and politics of metricised HRM
Author : Kay Greasley, Pete Thomas
Source : https://onlinelibrary.wiley.com/
The development of HR analytics, the growing dominance of positivistic approaches in
academic HRM, and the increasing influence of evidence-based approaches on HR represent
a convergence of contextual factors that have the potential to influence HR practice
significantly. In this context, we examine how the HR analytics “project” may unfold base on
a reflective analysis of a number of data-rich well-being projects and empirical evaluations.
We focus on the ways in which participants may become enrolled and mobilised in such
projects and the implications this has for perceived value and effects of “data” generated by
HR ana lytics.
9. In what ways are HR analytics and artificial intelligence transforming the healthcare
sector?
Author : Jillian Cavanagh, Patricia Pariona-Cabrera,Beni Halvorsen
Source : https://onlinelibrary.wiley.com/
‘Examining the need for HR analytics to better manage and mitigate incidents of violence
against nurses and PCAs in aged care’, Pariona-Cabrera, Cavanagh, and Halvorsen (2022)
examined how HR analytics can be used to manage incidents of violence against nurses and
personal care assistants (PCAs) in aged care and produce positive workplace outcomes for
these workers. Using qualitative data, 60 semi-structured interviews with 50 nurses and PCAs
and 10 managers were carried out. All of the participants were members of the Australian
Nursing and Midwifery Federation (ANMF) working in aged care facilities across Victoria.
By using the logic, analytics, measure and process (LAMP) model (Boudreau and Ramstad,
2007), the researchers demonstrated how HR analytics can be used to manage incidents of
violence and produce positive workplace outcomes for nurses and PCAs in aged care. First,
the authors found that through the logic element that nurses and PCAs frequently experience
physical and verbal violence from residents and a deficiency in management support as
management are interested in financial outcomes rather than managing incidents of violence.
10.Malladi and Krishnan (2013).
In their empirical study on differences in analytic applications in organisations, the authors
Malladi and Krishnan studied the drivers of business intelligence and analytics usage across a
large sample of firms. Their study was based on the TOE (Technological-Organizational
Environmental) framework. The study highlighted use of sophisticated data related
infrastructure as a promoter of analytics per se. Usage of technologies such as business
intelligence and analytics implies the need to acquire professionals with the skills to operate
on these technologies before making large-scale investments.

12 Suresh Malladi (2013).

In their research, used the TOE (Technological Organizational-Environmental) framework to
study the contextual factors that can influence adoption. Their study has thrown light on the
adoption of BIA systems. In their research, the authors attempted to test whether factors such
as i) perceived benefits (technological), ii) organisation size and organisational readiness in
terms of data infrastructure sophistication (organisational), and iii) industry knowledge
intensity and lack of industry standards (environmental) may have an influence on the level
of adoption. For HR analytics, this implies that a wider acceptance and application of HR
analytics can increase the industry knowledge intensity on HR professionals.
13 Vihari and Rao (2013).
The review presented the key focus and findings of the 14 articles and the two important
theoretical frameworks studied. Two theoretical frameworks, "Mapping HR-Analytics
Strategy" and the "measure the Return on Investment of HR Analytics (adapted from Phillips
ROI Methodology)" are highlighted. Analytics Maturity Model has been employed. Other
than non-availability of quality data, lack of analytical qualities is among the few concerns
that are hampering the fast growth and adoption of HR analytics as an important business
strategy (Vihari & Rao, 2013).
14 Sanayei and Mirzaei (2008).
In empirical study aim at providing an explanation of eHRM and introducing its activities
and tools, after the investigation, the effect of various independent variables such as job
satisfaction, professional commitment, and organizational commitment on the effectiveness
of HRM as a dependent variable. EHRM tools such as intranet, extranet, HR portals;
integrated HR suite software is rarely used, however according to expert's judgment if they
are used, they would have a positive effect on HRM output in Iranian organizations.
15 Kapoor &Sherif (2012).
Human Resources in an Enriched Environment of Business Intelligence work, signifies the
most vital problems of educating multinational companies to align their HR processes and
practices to the altering global labor market conditions. By adding BI and Data analytics in
the DNA of HRMprotocols and database strategies they can very well attract develop and
retain their top talent and be a fore runner in the global business competition.
16 Malisetty Sainath et.al., (2017).
Predictive Analytics in HR Management, from this study, the key areas are identified from
which the predictive analytics can create the values for HR perspective including 1)
Employee Profiling, 2) Employee Attrition and Loyalty Analysis, 3) Forecasting of HR
capacity. 1
17 Ketlley and Reilly (2003).
According to them computerized human resource information system consists of a fully
integrated, organization wide network of HR-related data, information, services, databases,
tools and transactions. Technology has only recently developed in a way that enables e-HRM
to makeits mark, especially the introduction of corporate intranets and web-enabled HRIS.
The nature of the development path, however, varies considerably from organization to
organization.
18 Ulrich, (1997).
His research explains that while attempting to make strategic changes within the human
resource function, HR professionals must still deliver good HR services to their stakeholders
who include employees and managers. One of the most important fundamental principles in
managing human resources is fostering the employment relationship so that employees may
feel an attachment to their work and contribute willingly to the success of the organization.
19 Florkowski and Olivas-Luján (2006).
According to Florkowski and Olivas-Luján HRIA is private computer network that provides
employees with direct access to link internal database and/ or a seamless interface with the
internet. It is a network designed to organize and share information and carry out digital
business transactions within a company. An intranet employs applications associated with the
internet such as web pages, browsers, e-mails, newsgroups and mailing lists but is accessible
only to those within the organization. HR Intranets offer the greatest innovation to HR
departments since the advent of the desktop computer.
20 Negin Chahtalkhi (2016).
He carried out a study focused on identifying the challenges that organisations face while
implementing a change programme like HR analytics. The profile of HR practitioners’ profile
is now required to have data affinity and knowledge of statistics (Chahtalkhi, 2016). A
qualitative investigation was carried out, and data from HR analytics employees of three
companies were captured using open-ended interview based on the eight steps model of
Kotter proposed in ‘Leading Change’. The results obtained were codified using the analytical
hierarchy method. Altogether Six different sets of challenges were categorised. The study is
limited in focus to gather data pertaining to the HR analytics’ implementation.
21.Tackling the HR digitalization challenge: key factors and barriers to HR analytics
adoption
Author: Vicenc Fernandez, Eva Gallardo-Gallardo
Source: https://www.emerald.com/insight/content/doi/10.1108/CR-12-2019-0163/full/html
Importance: This paper aims to contribute to the literature on human resources (HR)
digitalization, specifically on HR analytics, disentangling the concept of analytics applied to
HR and explaining the factors that hinder companies from moving to analytics.
GAP: The research gap in the paper you described could be a lack of comprehensive
understanding of the specific barriers hindering the adoption of HR analytics within
organizations. This could involve identifying overlooked or underexplored factors that
impede the transition to HR analytics, such as organizational culture, resistance to change,
lack of skilled personnel, or data privacy concerns. Additionally, there might be a gap in the
literature regarding effective strategies or interventions to overcome these barriers and
promote successful adoption of HR analytics practices.

22.HR Analytics: A Modern Tool in HR for Predictive Decision Making

Author: Dr. Abdul Quddus Mohammed
Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3525328
Importance: Human Resources Management (HRM) is evolving quickly along with
advancements in how we collect and process data. Human resource analytics, which is a way
of using data and analytical thinking to manage HR, is becoming really important for
companies. This study looks at what has already been written about HR analytics and how it
helps organizations make better predictions when making decisions. It will also look at how
companies are setting up their systems to use HR analytics effectively, including the
technology they use.
GAP: The main limitations of the following research predominantly centre on the availability
of literature on the issue. There is an existing gap in which the existing literature on
predictive modelling and organizational studies is limited in range. Hence, there is a need for
existing literature to be sufficiently nuanced and to be based on case studies of predictive
modelling and organisational studies so as to ensure that models and roadmaps being
endorsed are tried, tested and fail-safe.

23. Maximizing the Impact and Effectiveness of HR Analytics to Drive Business

Outcomes
Author: Scott Mondore, Shane Douthitt and Marisa Carson
Source:http://datascienceassn.org/sites/default/files/Maximizing%20the%20Impact%20
and%20%20Effectiveness%20of%20HR%20Analytics%20%20to%C2%A0Drive%20
Business%20Outcomes.pdf
Importance: The topic of HR analytics has been given a lot of press lately—and rightfully
so. It affords HR leaders an opportunity to show the direct impact of their processes and
initiatives on business outcomes. Unfortunately, as with many concepts that were once new to
HR (e.g. engagement, quality circles, etc.), the definitions and process details associated with
doing analytics the right way have not been well-articulated.
GAP: Showing gaps between survey scores between two different departments is a way of
analyzing data. Demonstrating improvements from year-to-year is also an interesting
perspective. However, if we aren’t showing the business impact of that gap, then all we are
doing is ranking departments on scores—i.e., looking at data.

24. HR Analytics and Organizational Effectiveness

Author: S. Zeidan and N. Itani
Source: https://www.researchgate.net/profile/Susan-
Zeidan/publication/341030134_HR_Analytics_and_Organizational_Effectiveness/links/5ea9
d39da6fdcc70509af21d/HR-Analytics-and-Organizational-Effectiveness.pdf
Importance: This paper conducts a systematic review of HR Analytics to explore processes,
trends, antecedents, consequences, and adoption influences. It highlights low adoption rates
despite proven benefits and identifies challenges such as skill shortages and inadequate
infrastructure, suggesting a need for further research and exploration.
GAP: The research highlights a significant gap in HR Analytics adoption and
implementation despite its proven benefits. It identifies challenges such as skill shortages,
inadequate infrastructure, and insufficient investment. Further investigation is urged to
address these obstacles and enhance the integration of HR Analytics into organizational
practices.

25. Bridging the gap: why, how and when HR analytics can impact organizational
performance
Author: Steven McCartney
Source: https://www.emerald.com/insight/content/doi/10.1108/md-12-2020-1581/full/html
Importance: This study aims to address this important issue by understanding why, how and
when HR analytics leads to increased organizational performance and uncover the
mechanisms through which this increased performance occurs.
GAP: The identified research gap lies in understanding and addressing the barriers hindering
the adoption and implementation of HR Analytics, including skill shortages, infrastructure
limitations, and lack of investment. Further research is needed to develop strategies for
overcoming these obstacles and facilitating the effective integration of HR Analytics into
organizational practices.

26. HR analytics and its moderating factors

Author: Kremer, Kristian
Source: https://unipub.lib.uni-corvinus.hu/3771/
Importance: This paper talks about how Human Resource Analytics (HR Analytics) is
becoming more important in HR, as it helps organizations make decisions based on data
rather than guesswork. Despite its significance, many organizations are slow to adopt HR
Analytics, and only a few actually use it. The paper suggests that understanding the factors
that influence the success of HR Analytics is crucial. However, there's not much research on
this topic, so the paper aims to fill this gap by exploring these factors and their impact on HR
Analytics. It provides explanations for how these factors affect HR Analytics and offers
suggestions for organizations to address them. The paper is structured into sections that
discuss the development of data-driven decision-making in HR, define HR Analytics, present
case studies on its adoption, examine different factors influencing its success, and finally,
discuss the main findings of the research.
GAP: The research gap identified in the paper revolves around the need for comprehensive
research on the moderating factors influencing HR Analytics, as well as a clearer
understanding of how these factors affect its implementation and effectiveness within
organizations.

27.Individual adoption of hr analytics

Author: Regina greenwood
Source: https://www.tandfonline.com/doi/abs/10.1080/09585192.2018.1446181
Importance: This study looks at why many organizations are slow to adopt HR Analytics,
despite its benefits. It uses a theory that helps understand why people adopt new ideas. The
study starts by looking at what people know about HR Analytics and ends by looking at
whether they decide to use it or not. It found that there are things that can make it easier or
harder for people to decide to use HR Analytics. Organizations and people who want to
encourage the use of HR Analytics can work to remove these obstacles. More research is
needed to figure out the best ways to do this.
GAP: The study identifies various factors within this decision process that can either hinder
or facilitate the adoption of HR Analytics. However, it also points out that there's a need for
further exploration to understand how to effectively address these barriers and encourage
adoption.

28.predictive HR analytics and talent management

Author: R. Navodya Gurusinghe
Source: https://www.tandfonline.com/doi/abs/10.1080/23270012.2021.1899857
Importance: This paper talks about how new technologies like artificial intelligence are
changing how organizations work, requiring different skills to achieve their goals. HR
analytics is a tool that helps organizations make important decisions about their people and
business strategy, giving them an edge over competitors. However, there isn't much research
on the theories behind why organizations adopt HR analytics. Also, there's not enough
literature on how the context of an organization affects its ability to use predictive HR
analytics (PHRA). To fill this gap, the paper proposes a theoretical framework using the
Technological-Organisational-Environmental (TOE) framework and Resource-based theory.
This framework examines how different factors influence an organization's ability to use
PHRA and how it impacts talent management, with a focus on the culture of using data. This
paper is one of the first to suggest a theoretical model for understanding how PHRA affects
talent management.
GAP: The research gap lies in the need for theoretical models that explain the adoption of
HR analytics and its impact on organizational outcomes, as well as the role of contextual
factors in building PHRA capabilities. The proposed conceptual framework in this paper
represents a significant step towards addressing these gaps and providing insights into the
complex dynamics of HR analytics adoption and utilization.
Top of Form

29: Data Privacy and Security Issues in HR Analytics

Author: Shweta Jha
Source: https://link.springer.com/chapter/10.1007/978-981-16-2126-0_17
Importance: This paper looks at how big companies worldwide are using HR analytics more
and more. However, there's a growing worry about protecting employees' privacy and
preventing the theft of their personal information used in HR analytics. The paper reviews
existing research to understand these concerns better and assesses how well governments and
companies are addressing them. Additionally, it offers suggestions on how to address
employees' privacy concerns regarding the use of their personal data in HR analytics.
GAP: The research gap lies in the need for a comprehensive understanding of privacy and
data security concerns in HR analytics, an assessment of the responses by governments and
corporations, and the development of practical solutions and roadmaps to address these
concerns adequately. This paper aims to fill these gaps by conducting a systematic review of
extant literature and providing insights into resolving privacy concerns in HR analytics.

30: Future of HR Analytics

Author: Smruti Bulsari, Kiran Pandya
Source: https://www.igi-global.com/chapter/future-of-hr-analytics/318301
Importance: This chapter talks about HR analytics, which is a new way of making decisions
in HR based on evidence rather than intuition. It discusses how HR analytics can be used in
three important areas: recruitment, employee engagement, and employee retention. It also
includes case studies that show how HR analytics is used in real-life situations. The chapter
briefly mentions some statistics about how HR analytics is currently being used in
organizations. It also covers key issues in implementing HR analytics, factors that can affect
its implementation, and challenges that organizations may face. The chapter ends with a
discussion about the future of HR analytics. It's worth noting that this chapter doesn't dive
into technical details like regression models or machine learning algorithms.
GAP: while the chapter provides a comprehensive overview of HR analytics, there are
opportunities for further research to deepen our understanding of implementation challenges,
moderating factors, future trends, and the impact of HR analytics on organizational outcomes.
Addressing these research gaps can contribute to advancing knowledge in the field of HR
analytics and enhancing its practical application in organizations.

CHAPTER-3
CHAPTERIZATION
TYPES OF HR ANALYTICS
There are four types of HR analytics
1.descriptive
2.diagnostic
3. Predictive
4.prescriptive
1. Descriptive Analytics - Descriptive analytics is a type of HR analytics that involves
analysing historical data to gain an understanding of what had happened in the past. It
summarises data that helps identify patterns and trends, such as employee turnover rates,
absenteeism, or workforce demographics.
2. Diagnostic Analytics - Diagnostic analytics is an HR analytics that goes beyond the
descriptive analysis of past events to identify the root cause of workforce problems or issues.
It involves analysing and extrapolating data to determine why certain trends or patterns are
occurring in the workforce data. By examining historical data, diagnostic analytics can help
HR professionals understand why certain events have occurred in the past years and what
factors have contributed to their occurrence.
3. Predictive Analytics - Predictive analytics is a type of HR analytics that uses statistical
algorithms, extrapolative methods and machine learning techniques to analyse historical data
and predict future outcomes. It involves identifying patterns and trends in workforce data,
then extrapolating using that information, to make predictions about future workforce
behaviour.
4. Prescriptive Analytics - Prescriptive analytics is a type of HR analytics that works using
data, algorithms, and machine learning techniques to recommend actions that HR
professionals can take to optimize their workforce and curb negative phenomena involving
the workforce from taking root. It goes beyond predictive analytics, which predicts what
might happen, to suggest what should be done to prevent it from occurring.
USES
1. Identifying patterns in voluntary and involuntary employee turnover.
2. Assessing the recruitment effort through candidate and process data
3. Predicting future workforce needs by analysing current workforce demographics, skill sets,
and retirement projections.
4. Determining training and development needs from a skills inventory

NEED
HR analytics can help improve the recruitment process by identifying the most effective
sourcing channels, optimizing job descriptions, and streamlining the candidate selection
process.
OBJECTIVE
The objective of HR analytics is to gain valuable insights from data about the people who
work for you, how to increase their effectiveness through decision-making based on these
insights, and what realistic goals may be set for them.
Nature of HR Analytics
Human Resources (HR) analytics, also known as people analytics or talent analytics, is the
practice of using data analysis and statistics to understand, improve, and optimize various HR
processes and decisions within an organization.
Companies using HR Analytics
The companies that use HR analytics are
Microsoft, Royal Dutch Shell, Juniper Networks, Google, Claro, Amazon, IBM,
Facebook (META), Netflix, McKinsey & Company.
Here's a detailed explanation of how some of these companies are utilizing HR analytics:
Microsoft
Microsoft has embraced data-driven HR as a best practice within the company and offers its
line of HR analytics solutions to help manage businesses. They have used HR analytics to
develop statistical profiles of employees likely to leave the company, enabling them to
implement HR interventions to reduce attrition rates significantly.
Royal Dutch Shell
Shell used an unorthodox approach by analysing the results from video games played by its
employees in conjunction with their suggested ideas. By using HR analytics software, they
identified the individuals with the best ideas, leading to an increased focus on employee
suggestions and subsequent business improvements.
Juniper Networks
Juniper Networks challenges typical HR assumptions and uses HR analytics to focus on
business outcomes, including analysing where top-performing employees come from and
where they go after leaving the company. This approach helps them gain insight into diverse
industry career paths and develop fresh strategies for attracting and retaining talent.
Google
Google has completely reinvented HR within their organization by using people analytics to
make more accurate people management decisions, optimize various areas of its people
processes, and align them with their working culture. This has resulted in high employee
engagement and improved business methods and morale.

Claro
Claro offers advanced analytics to expedite recruitment, increase employee engagement, and
reduce attrition by analysing global labour force data to understand job seekers' behaviour
and make data-driven decisions to retain talented employees.
Amazon
Amazon utilizes HR analytics to optimize its hiring processes, assess employee performance,
and improve workforce productivity. They are known for their sophisticated use of data to
drive HR decision-making.
IBM
IBM is a leader in HR analytics, leveraging data to enhance talent acquisition, workforce
planning, employee engagement, and learning and development initiatives.
Facebook (Meta)
Meta, formerly known as Facebook, uses HR analytics to analyse employee data, assess
performance, and enhance employee experience. They apply advanced analytics techniques
to drive talent management strategies.
Netflix
Netflix employs HR analytics to optimize its talent acquisition efforts, personalize employee
experiences, and foster a culture of continuous improvement. They use data to inform
decision-making across various HR functions.
McKinsey & Company
As a global consulting firm, McKinsey utilizes HR analytics to advise clients on talent
management strategies, workforce planning, and organizational design. They apply analytics
to drive insights and recommendations for HR transformation.
These companies exemplify the use of HR analytics to drive strategic decision-making,
enhance employee experiences, and optimize organizational performance.

CHAPTER-4
22.HR Analytics: A Modern Tool in HR for Predictive Decision Making

HR ANALYTICS AND PREDICTIVE DECISION-MAKING MODEL

Post the review of a relevant existing literature on HR analytics and predictive decision-
making, the following model was designed considering the relevance of effective decision-
making for organisational success. The proposed model is based on the literature reviewed
earlier. The outlined model, Figure 1 is based on the studies surveyed by Ballinger, Cross and
Holtom (2016) whose study posits how data acquired about the network structure of the
employees can serve as a predictor for employee turnover rates. Similarly, the proposed
model looks at how data acquired through various parameters can affect employee
performance, as outlined in Rich et al’ (2010) study, and can be evaluated using analytics
tools. As per the literature reviewed earlier, Puhakainen and Siponen’s study evaluated the
need for employees to be trained in the information systems security policies of the
organisation in order to ensure that they comply with the prescribed policies. In the context of
the present study, the required training-related interventions that need to be made in this
regard can be understood through data gathered on the existing levels of training and
awareness among employees. Once such information has been acquired, it can be analysed
through analytics tools in order to lead to conclusions about predictive decisions that need to
be made with respect to training requirements and provisions for employees. The model
presents a visual representation of how analytics-based interventions can be used for
predictive decision-making about various parameters that are pivotal to organisational
operation.
The present research aimed for an exploration of existing literature with the aim of
understanding the relationship between human resource and analytics and understand the role
it plays in the improvement of the existing range of managerial and HR related research. The
study’s focus was on investigating on the future of HR analytics if integrated into the
company to assist managers in predictive decision-making based on statistical evidences and
relevant HR analytical data and literature. Also, the focus was on examining the IT
infrastructure and technological interventions, including those that affect the way data is
mined stored and made in terms of the effective implementation of HR analytics and the need
for them in order to be efficient in terms of data storing in order to be relevant for HR
analytics. A significant conclusion drawn from the review of literature on the integration of
HR analytics in the domain of human resource management makes it clear that while
suggestions for theoretical models that could be adopted for the hassle-free integration exist,
there is a lack of literature that reviews the real-world applicability of these models and has
reviewed the success (or failure) of these models or strategies when implemented in the
context of organisations. Exploration of the literature related to predictive behaviour point out
that the data analytics in the field can help in identifying specific parameters that can aid both
HRM and HRD in an organisation. Predictive modelling, similar to the model outlined in the
present study, can be used to ensure that raw data helps in drawing important inferences and
genuine insights that aid organisational growth. However, the existing literature resources
could be further enhanced in terms of studying case studies of predictive models to accurately
gauge the relevance and feasibility of the models created for specific industry sectors. This is
significant because predictive decision-making and modelling cannot be homogenously used
across industry types and enterprises as they will vary according to various parameters such
as type of enterprise, the industry it is functional in, the number of employees and amount of
resources it can expend for HR analytics.
23. Maximizing the Impact and Effectiveness of HR Analytics to Drive Business
Outcomes

Bringing Analytics Results to

Front-line Leaders Making HR analytics available and action able to front-line leaders will
expand your impact in the organization. An important approach/tool that makes employee
opinion ExHIBIT 3: STRATEGIC SURVEY HEAT MAPS™ survey data more business-
focused is the use of analytics-driven HeatMaps. We created Strategic Survey HeatMaps™
(Exhibit 3) to provide each leader with an easy-to-under stand chart that summarizes their
local survey data into four areas that prioritize action— based on cause-effect business
impact. Front-line leaders simply do not have the time to pore over numerous survey items
with average scores, percentile favorable scores, and benchmark scores prior to making any
informed decisions on strengths, weaknesses and what needs their work to see an improve
ment or a business impact). The HeatMaps allow you to provide all lead ers, at all levels a
quick way to incorporate analytics to prioritize exactly what needs their attention to impact
results.
Using Analytics to Drive Succession/ Talent Planning
Building on the Baptist Health Care case study, we will again focus on HCAHPS as the
critical business outcome. An analytics-based approach to succession planning infuses the
appropriate amount of scientific rigor into the process while still allowing the program to be
customized to best meet the needs of individual organizations. Like the other pre vious
examples, we used the six-step roadmap as a guide for the process. Our specific approach to
analytics-based suc cession planning is depicted in Exhibit 4. The analysis of key business
drivers serves as the foundation for a talent/succession score card. Integrating the business
drivers from key HR process analytics and applying them to individuals across the
organization will neutralize the biases that come into play when creating succession/talent
plans.
26. HR analytics and its moderating factors
The term human resource management (HRM) compris es the traditional core activities such
as resource staffing, planning, performance appraisal, training and devel opment,
compensation, labor relations, and safety and health. Besides these activities, HRM includes
aligning these HR activities, managing organizational change and culture, and organizational
design activities as part of its strategic role (Schuler – Jackson, 2005). The role of HRM
evolved greatly since the 1980s and has changed from the role of an administrator of
mandatory HR practices to a more strategic role by acting as a strategic business part ner
(Ulrich – Dulebohn, 2015). The evolution of HRM has mainly been affected by the
development of new technol ogies, which have changed the different HR processes and the
way the work is managed and done in organizations (Stone et al., 2015). This overall
development of HRM has had a significant impact on the practice and the overall focus of
HRM. When looking back in the administrative role of HRM, its main objective was to make
HR practic es more cost-effective. However, since HRM takes over a strategic role the
objective is more related to generating value for the overall organizational business, for
instance by improving customer satisfaction through enhanced em ployee engagement
(Ulrich – Dulebohn, 2015). The term strategic human resource management sig nals the
belief that effective HRM has a positive impact on business effectiveness (Jackson et al.,
2014). The strategic role of HRM is based on the assumption that it links HRM to the
organizational business environment and thus helps organizations to achieve objectives
related to the strategic business and profitability (Schuler, 2013; Walsh et al., 2010). The
development of strategic HRM is closely connected to the broader concept of strategic
management, which has been affected by the global trend that business decisions should
consider the external envi ronment (Jackson et al., 2014). In line with this reasoning, Ulrich
and Dulebohn (2015) propose that HRM should not only be linked to the narrow
organizational business, but also be connected to various stakeholders and the broader
business context of the organization. Hence, in addition to the employees, HRM needs to
understand the customer behavior and business processes. This broader perspective
constitutes the basis for the decision-making process and enables the HR function to create
greater value by align ing its objectives and activities to the environment the organization is
operating in (Levenson, 2013). The major evolution HRM has made over time, along with the
technological development, greatly impacts the measurement and decision-making processes
of HRM. Similarly, many scholars argue that data processing, meas uring and analyzing as
the basis for decision-making pro cess in HRM constitute the key factors in the development
of HRM to a strategic partner (Lawler et al., 2004; Walsh, 2010). However, although this
development is well-recog nized, uncertainty is associated with the business impact of HRM,
as a gap of respective research results is still existing in the literature (Boudreau – Ramstad,
2007; Walsh, 2010; Jackson et al., 2014). Indeed, compared to other functions like finance
and marketing, HR is lacking proper analytical tools and metrics for the decision-mak ing
process and is thus left behind in producing strate gic value (Lawler et al., 2004). A data-
driven approach to HRM is perceived as a possible way to address this problem, enabling
decisions based on evidence instead of intuition or personal experience (Lawler et al., 2004;
Rasmussen – Ulrich, 2015; Pape, 2016). However, when examining the literature more
closely it has to be noted that concepts surrounding the notion of evidence-based decision-
making in HRM are still not fully established. The idea of measuring data in HR is not new
and developed almost simultaneously with the changing role of HRM. Metrics on measuring
cost, quantity and time of workforce already emerged in the 1970s. In the 1980s, these
metrics began to include benchmarking, which allowed organizations to compare their results
with other organizations (Fitz-enz, 2010). Later on in the 1990s balanced scorecards and
strategy maps were developed to include operational targets and strategic goals of the
organizations. Typically, the HR balanced scorecards included HR outcomes and processes,
alignment between the processes and the business strategy, and KPIs meas uring the
effectiveness of the HR outcomes and processes (Douthitt – Mondore, 2014). HR metrics are
usually divided into four types, including effectiveness metrics, efficiency metrics, and
impact or outcome metrics (Lawler et al., 2004; Boudreau – Ramstad, 2007). claim that HRM
has mainly been engaged in measuring the efficiency of the HR function itself, instead of
providing measurements indicating the value it generates for the overall business. Although
the focus is still strongly on HRM itself, measurements have already shifted from activities
towards the outcomes, along with the development of strategic HRM. In order to deliver
more strategic value, HR will need to be able to show correlations between its activities and
business outcomes (Ulrich – Dulebohn, 2015).
3. HR Analytics and its Impact on Organizations Performance

The organization needs to address questions like “Why do employees should stay with our
company?”
HR analytics allows you to calculate what employees needs or is lacking and then create a
system or a program that will help increase the performance and retention rates. Companies
like Google uses HR Analytics to collect employee performance data to determine the most
effective training programs to help both high and low performing employees. HR analytics
and other unrecognized organizational methods that are related with HR analytics are ignored
by many organizations. The study focuses on how HR practices could be used to change
traditional roles to transformational roles in organizations. The study tries to explore and
understand the role of analytics in this modern era. Increase of expectation in performance
has put the focus on HR
Analytics to create a new innovative and competitive world at work.
To execute the role effectively, HR managers and leaders need considerable support
from their organizational leaders. First, they need to be able to go in-depth of the problem.
These problems can come from various issues and experts in the areas such as change
in management, leadership development, staffing and metrics, and HR Analytics, can
help analyse the situation and provide possible solutions for these problems.

Performance Management is an important aspect in Human Resources as it is a

continuous communication process between managers and employees to achieve
organizational goals as well as develop personnel skills of employees. This entire
communication process involves defining clear specific expectations, establishing goals,
providing continuous feedback and examining results.
Performance Management builds a communication system between a manager and employee
that is built throughout the year in hope of accomplishing organizational as well as
individual goals. To understand employee managers, go through all the collected data and
addresses the performance gaps through the given data. Various tools are used to gather such
data like HR Analytics.
HR Analytic is the collection and application of talent data to improve critical talent. It is
basically used for decision making using the available data, to predict employee
turnover and identify better performers or predict skills that need to be Improved. HR
Analytics is also known a people analytics.
It enables your organization to measure the impact of HR metrics on overall business
performances and make decision based on the data.

5. Employees’ Experiences of Accepting and Adopting HR Analytics

HR analytics is a collaboration of human resource metrics and statistical operations [39],

driving contributions to organizational performances. HR analytics is a breakthrough from
the narrow use of human resource metrics, which only focused on labor issues related to the
working of the business plans; HR analytics led to an extension in the use of Business
Intelligence and made data accessible and easy for visualization. Organizations, such as
KPMG, IBM, Shell, Google, and Microsoft, have stated the strategic advantages of analytics
in HR in the areas of talent acquisition, attrition risk management, employee sensitivity
analysis, and capacity planning, which has made businesses adopt [10] and gain their benefits
[16]. The successful implementation of HR analytics by these organizations motivates other
organizations and industries to experience the advantages.
Understanding the research works and cases in the notion of acceptance and adoption of HR
analyticsleft us with the age-old discussion on the worth of manpower between scanning
markets, managing risks, and making profits [41]. Employees' worth, employees' efforts [42]
and their systematic approach made businesses work even during the crisis [43], but often
employees are taken for granted and made to work on changes as and when the business
requires, making them accepted as engines of revenue growth and not to react.