Despite significant advances in our theoretical understanding of the contribution of the Human Resource (HR) function to organisational success (Guest 2011, Jiang et al 2013), many HR practitioners struggle to adequately demonstrate this contribution over time (Marler and Boudreau 2017, Angrave et al. 2016, Lawlor 2007). This problem is often attributed to a lack of evidence-based data underpinning HR’s strategic choices (Lawlor, 2007), or what is now known as HR Analytics.
Metrics have always been central to HR. Their use has evolved from the accounting of labour costs within an organisation, to the use of workforce analytics in resource planning, through to the more contemporary focus on analytics as a critical input to strategic decision-making. Until recent years however, HR analytics were still seen as a retrospective accounting of (or rationale for) the success or failure of strategic HR activities. Today, HR Analytics are positioned as a strategic influencer (Mishra et al. 2016), the ‘backbone’ of SHRM.
Yet, despite evidence linking the adoption of HR Analytics to organisational performance, that adoption is very low (Marler and Boudreau, 2017). Substantial investment in HRIS (human resource information systems) has not led to HR capability beyond retrospective, transactional analytics (Thite et al., 2009). In fact, predictive analytics and strategic modelling on aspects such as employee turnover, job satisfaction, RoI etc. is still significantly lacking (Angrave et al. 2016, Marler and Boudreau, 2017). HR analytics is a multi-disciplinary process requiring critical business knowledge, HR expertise, IS and analytical skills (Mishra et al. 2016), leaving many HR practitioners struggling to realise its potential. At a simple level, grappling with legacy systems, data lag-times and insufficient skill sets are fast becoming an ‘Achilles heel’ for HR practitioners. A deeper concern is that this lack of capability, coupled with poorly-designed and over-used HRIS, may result in poor strategic choices and ‘seal the exclusion of HR from strategic, board-level influence while doing little to benefit organisations and actively damaging the interest of employees’ (Angrave et al. 2016). While there is a growing body of research internationally, relatively little is known in the Irish context. Is HR Analytics the ‘backbone’ or ‘Achilles heel’ of the Irish HR function?
This research aims to address that gap by examining the extent to which HR Analytics is contributing to SHRM in Ireland through direct research with industry practitioners. Through focus groups with HR practitioners representing a number of Irish-based organisations, the following key areas will be fully explored:
- Practitioner perceptions of HR analytics and their current adoption in Ireland.
- Current information system and analytical skill resources and capabilities in the HR function.
- Current uses and issues associated with the use of HR analytics.
- Current and future practitioner needs.
This research will help us better understand both the challenges encountered by practitioners in establishing an in house HR analytics programme, and the factors that contribute to successful HR analytics programmes. At a theoretical level, this research further explores the link between HR analytics and successful outcomes at the level of the organisation.
