HR Analytics, Fad or Fashion for Organizational Sustainability

Abstract

HR analytics is becoming more and more important over the years. Understanding how to work with the data is paramount to the success of an organization working in the competitive business world. The largest expense of many companies is on human resources, starting from sourcing, recruiting, training, retaining till end of service. Therefore, it is essential to know how HR decisions impact business performance by linking HR practices to business outcomes and using meaningful information instead of gut feelings. For this purpose, HR analytics can help companies know what they need to improve the work process performance. It can help them to form a high-performance team and maintain good working environment and predict exactly which candidates are likely to exceed. However, the major challenge for the companies is to find out the right person who can work with HR data and perform analytics in a right and meaningful way. Few companies using HR data analytics are not taking it seriously because they think that it is just another product added in the company’s soft assets, but few are using it properly to make data-driven decisions. Using five-point Likert scale questionnaire, 273 responses from HR professionals working in GCC automobile industry were collected and analyzed using SPSS. Analysis revealed that HR analytics used properly to generate reports that help organizational executives to run routine operations and HR-related strategic matters is contributing significantly toward organizational sustainability. Furthermore, organizations’ readiness to use HR analytics and human capital mediates relationship between HR analytics and organizational sustainability, which creates learning.