The purpose of this paper is to provide a return on investment (ROI) based review of human resources (HR) analytics. The objectives of this paper are twofold: first, to offer an integrative analysis of the literature on the topic of HR analytics in order 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 HR analytics by highlighting specific directions as to where the expected ROI may be found.
This paper is a review paper in which a four-step review and analysis methodology is implemented.
Study results indicate that empirical and conceptual studies in HR analytics generate higher ROI compared to technical- and case-based studies. Additionally, study results indicate that workforce planning and recruitment and selection are two HR tasks, which yield the highest ROI.
The results of this study provide practical information for HR professionals aiming to adopt HR analytics. The ROI-based approach to HR analytics presented in this study provides a robust tool to compare and contrast different dilemma and associated value that can be derived from conducting the various types of HR analytics projects.
A framework is presented that aggregates the findings and clarifies how various HR analytics tools influence ROI and how these relationships can be explained.
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