Exploring the phenomenon of HR analytics: a study of challenges, risks and impacts in 40 large companies

Abstract

Purpose

This paper aims to respond to questions being raised about the challenges, risks and impacts of Human Resource Analytics (HRA). Based on a study of 40 companies, it discusses the implications of HRA for practitioners, praxis and practices in HRM and adds to this a concern with whether HRA is enhancing mutuality in employment relationships.

Design/methodology/approach

Using an abductive approach, the authors analyzed data from semistructured interviews with an HRA leader or specialist in 40 large organizations.

Findings

While wrestling with the challenge of data quality and integration, the practice of descriptive analytics is widely adopted in these companies and the majority can demonstrate improvement in the efficiency and effectiveness of HR activities through predictive analytics. The analytical competence of HR specialists is an ongoing issue. While much more research is needed, the companies in the authors’ sample demonstrated some valuable examples of mutual gains from HRA.

Practical implications

Education in HRA must not only help to raise quantitative competencies among HR specialists but should also help them to ask critical questions about the theoretical propositions and subjective data points being built into HRA. Boundary spanning is important to enable effective HRA and processes for employee voice to be improved. Arguably, the time has come for a more formalized data analytics' strategy in large organizations.

Originality/value

This paper provides evidence on how HRA is being implemented in large companies, including how HRA leaders are managing its challenges and risks and the impacts it is having on business and employee outcomes.

Citation

Cayrat, C. and Boxall, P. (2022), "Exploring the phenomenon of HR analytics: a study of challenges, risks and impacts in 40 large companies", Journal of Organizational Effectiveness: People and Performance, Vol. 9 No. 4, pp. 572-590. https://doi.org/10.1108/JOEPP-08-2021-0238