Placing data analytics into the HRM leaders’ tool kit : practitioners’ views of data analytics

Abstract

The strategic relevance of Human Resource Management data analytics (HRMDAs) has been consistently acknowledged among scholars. There is less of an understanding how HRM practitioners make sense of HRMDAs and to what extent they perceive them as useful and impactful. We conducted in- depth interviews among 48 HRM practitioners from three European countries working in diverse organizations with the aim of highlighting their concerns, beliefs, and expectations associated to the use and adoption of data analytics. We utilized diffusion of innovation theory to inform our thinking and focused on the contextualization of data analytics, their potential role in HRM practice, the required skills needed to support their adoption, and the degree of trust associated with accepting HRMDAs. Overall, we found that leaders acknowledged the importance of HRMDAs irrespective of the firm’s size, industry, and strategy but were still generally skeptical whether it can ever substitute traditional HRM. They tended to see them more as reinforcing HRM rather than substituting it. Any fears arising about their use can be mitigated by being convinced that data analytics can indeed improve the HRM’s professional strategic role within the firm. In addition, many argued that they lack the skills required to adopt data analytics in their practice and urged for an improvement in this regard while acknowledging that HRMDAs will undoubtedly reshape the professional landscape of HRM. Both theoretical and practical implications from the findings are discussed.