HR analytics and Organizational Performance

Abstract

This master thesis explores the utilization of HR analytics in organizations. As research has presented distinct and partly opposing results regarding HR analytics, our aim was to study whether previous research aligns with the experiences of those working with HR analytics; more specifically of those of consultants and HR managers of international organizations, simultaneously opposing these two viewpoints with each other. Thus, we examine if HR analytics is a fad, as mentioned by some, or if it is as fantastic and detrimental for the success of an organization as others state. Concretely, we aim to answer the research question “From the perspective of consultants and HR managers, how is HR analytics improving organizational performance?” Following the results of our study, we added the following sub question that further elaborates the utilization of HR analytics “What factors are preventing organizations from utilizing efficient HR analytics?” The interviewees included 5 consultants and 6 HR managers from international organizations. We used the comparative research design and further, semistructured interviews to be able to get as rich information as possible, as well as to be able to respond to the interviewees’ information with flexibility. Our findings conclude that there were no major differences between the consultants and managers in either one of the research questions presented. However, the clearest conclusion from both parties was that HR analytics is still at the descriptive level, which can inhibit organizations from fully utilizing HR analytics for organizational performance. Additionally, as beneficial as it was to find inspiration from other organizations’ ways of utilizing HR analytics, an organization should focus on HR analytics’ initiatives that are relevant for the performance of their own organization. Further, both parties recognized organizational demographics, information technology, and people to be the biggest factors hindering the utilization of HR analytics. This thesis further elaborates on conclusions, future research opportunities and limitations of the study.