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An ROI-based review of HR analytics: practical implementation tools

Hila Chalutz Ben-Gal (Department of Industrial Engineering and Management, Afeka College of Engineering, Tel Aviv, Israel) (School of Management, San Jose State University, San Jose, California, USA)

Personnel Review

ISSN: 0048-3486

Article publication date: 15 August 2019

Issue publication date: 23 August 2019

Abstract

Purpose

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.

Design/methodology/approach

This paper is a review paper in which a four-step review and analysis methodology is implemented.

Findings

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.

Practical implications

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.

Originality/value

A framework is presented that aggregates the findings and clarifies how various HR analytics tools influence ROI and how these relationships can be explained.

Keywords

Acknowledgements

This research was partially supported by the Koret Foundation grant for “Digital Living 2030”.

Corrigendum: The publisher of the article: Chalutz Ben-Gal, H. (2019) “An ROI-based review of HR analytics: practical implementation tools”, Personnel Review, Vol. 48 No. 6, pp. 1429-1448 added the acknowledgement that the research was partially supported by the Koret Foundation grant for “Digital Living 2030” at a later stage.

Citation

Chalutz Ben-Gal, H. (2019), "An ROI-based review of HR analytics: practical implementation tools", Personnel Review, Vol. 48 No. 6, pp. 1429-1448. https://doi.org/10.1108/PR-11-2017-0362

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited