From data to insights : HR analytics in organisations

Abstract

Despite advances in the application of analytics in business functions such as marketing and finance, and a significant degree of interest in the topic of Human Resource analytics, its usage is still nowhere near where it could be. This study’s primary aim was to measure the levels of usage of HR analytics among South African organisations, an exercise that has not been done before. This qualitative, exploratory study was conducted among 16 senior Human Resource practitioners from large organisations in South Africa. Being qualitative, a limitation of this study is that it is not representative and therefore the results cannot be generalised. Further opportunities therefore exist for quantitative, longitudinal research in this field to objectively ascertain the extent of usage of HR analytics. It was found that South African organisations’ usage of HR analytics is still in its infancy and that the concept and its implications are little understood. It also found that there is consensus regarding the importance for HR analytics in organisations and that the HR analytical skills challenge is the main hindrance to implementation. Importantly, the study demonstrated and that the overall outlook for HR analytics is positive. The research makes recommendations and proposes a model that should enable organisations, the HR profession and the academic world to implement HR analytics.