Evidence-based HRM through analytics : reducing the propensity of HRM to become a Cinderella

Abstract

The HR world is abuzz with talks of data and the transformative potential of HR data analytics. The role of HR has developed over time from the administrative function towards a more strategic leaning partnership. The collecting, storing and processing of data has been a central defining role in the gradual evolution of HRM. Academics throughout the past decades have questioned the success of HR‟s development to a more strategic role. This study analyses in detail the issues which hail HR data analytics as a must-have capability that will step up the HR function as a strategic management function while promising a better organisational performance. This study argues that HR practitioners should overcome the limitations, drawbacks and challenges to fully engage as a strategic emerging field to develop better methods and approaches. It is unlikely that existing HR practices that deal with the limited use of data will deliver transformational change. In recent years there has been a growing belief that HR data analytics could be the answer to such shortfalls and also to improve data-driven HRM in a way that could support the HR function. It was concluded that the concept of data-driven HRM and HR data analytics are still in their infancy. Presently the HR function is very routine oriented, and the focus is placed on universal HR processes without further analysis. The term “data-driven HRM” is not yet very widely used among HR professionals. It was concluded that in order to achieve a strategic role HR needs to become more decision oriented with a focus of generating value to the business. HR analytics was perceived as a key solution to make this happen. HR analytics was concluded to be context-based, which should be planned and applied in line with the organisation „s strategy and business situation. Subsequently, the successful implementation is dependent on the capabilities of the people utilising these tools and their ability to understanding how they can be used in the correct manner.