How does algorithm-based HR predict employees’ sentiment? Developing an employee experience model through sentiment analysis

Abstract

Purpose

This study aims to develop a conceptual model of positive employee experience using sentiment analysis within algorithm-based human resource (HR) strategies. Its goal is to enhance HR professionals’ understanding of employee experiences and enable data-driven decision-making to create a positive work environment, thereby contributing to the originality of HR research.

Design/methodology/approach

The study conducts sentiment analysis – a text mining technique – to assess employee reviews and extract distinct positive experience factors. The employed data-driven methodology serves to fortify the reliability and objectivity of the analysis, ultimately resulting in a more refined depiction of the conveyed sentiment.

Findings

Utilizing sentiment analysis, the authors identified 135 keywords that signify positive employee experiences. These keywords were then categorized into four clusters aligned with factors influencing employee experience: work, relationships, organizational system and organizational culture, employing an inductive approach. The framework outlines the process of nurturing positive employee experiences throughout the employee life cycle, incorporating insights from the affective events theory and cognitive appraisal theory.

Practical implications

Data-driven insights empower HR professionals to enhance employee satisfaction, engagement and productivity. HR managers implementing AI-assisted HR ecosystems need digital and data science skills. Additionally, these insights can offer practical support in accentuating diversity and ethical considerations within the organizational culture. Candid employee data can enhance leadership and support diversity in organizational culture. Managers play a crucial communication role, ensuring flexible access to personalized HR solutions.

Originality/value

Applying sentiment analysis through opinion mining allows for the collection of unstructured data, reflecting authentic employee perceptions. This innovative approach expedites issue identification and targeted actions, enhancing employee satisfaction. Textual reviews, integral to employee feedback, offer comprehensive insights. Additionally, considering subjectivity and review length in online employee reviews adds value to understanding experiences (Zhao et al., 2019). This study surpasses prior research by directly identifying key factors of employee experience through the analysis of actual employee review texts, addressing a gap in understanding beyond previous attempts.

Citation

Lee, J. and Song, J.H. (2024), "How does algorithm-based HR predict employees’ sentiment? Developing an employee experience model through sentiment analysis", Industrial and Commercial Training, Vol. 56 No. 4, pp. 273-289. https://doi.org/10.1108/ICT-08-2023-0060