Big data and HR analytics in the digital era

Pauli Dahlbom · Noora Siikanen · Pasi Sajasalo · Marko Järvenpää

161 citations0/0 files storedBaltic Journal of Management

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AI and HR Technologies Human Resource and Talent Management Big Data and Business Intelligence

Abstract

Purpose The purpose of this paper is to focus on how the HR function takes advantage of human resource analytics (HRA), including big data (BD), and discuss factors hindering HRA and data utilization. Moreover, the authors discuss the implications of the HRA-induced role transformation of the human resource (HR) function. Design/methodology/approach This is an explorative case study based on qualitative interviews in nine leading Finnish companies. Findings The results indicate that both technical and human obstacles, operating with very basic HR processes and traditional information systems and poor data quality, hinder adoption of advanced HRA. This, combined with lacking skills in analytics and business understanding, inability to go beyond reporting, misconceptions related to BD and traditional compliance-oriented HR culture pose further challenges for the data analytics capacity and business partner role of the HR function. Senior executives expect no significant advancements of HRA, while HR professionals saw potential value in BD, although skepticism was not uncommon. The results point toward a need for increased cooperation with data analysts and HR professionals in provision and understanding the HR-related data for business-related decision making. Furthermore, cultural change and organizational redesign may be called for, in addition to overcoming technological obstacles related to BD, for it to have an impact on HR practices. HRA utilization and role transition of the HR function seem closely related and this transformation can be mutually reinforcing. Originality/value This study provides and theorizes explorative data on HRA within a group of some of the largest Finnish companies, pointing toward an immature state of the art in BD and HRA utilization and there being a relationship between HRA and the role transition of the HR function in organizations.

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References

1994Competing paradigms in qualitative research.2013Big Data : The Management Revolution 2013Sampling in Interview-Based Qualitative Research: A Theoretical and Practical Guide 1999ORGANIZATIONAL CHANGE AND DEVELOPMENT 2012Big data: the management revolution.1994Designing funded qualitative research.2019Artificial Intelligence in Human Resources Management: Challenges and a Path Forward 2016An evidence-based review of HR Analytics

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