How HR Analytics Can Help Improve Decision-Making, HR Practices and Firm Performance: A Systematic Review.

Human Resource (HR) analytics is the process of collecting and analyzing employee data to understand the association between HR practices and firm performance to make decisions and formulate strategies. The study aims to systematically evaluate the literature on HR analytics under three aspects: decision-making, performance, and HR practices and functions. For this purpose, the study systematically reviews the literature on HR analytics available on Web of Science database. The study reviews 43 papers relating to HR analytics and finds decision-making as the building block for various effective HR practices and for enhancing the performance of employees. With regard to other available HR practices, organizations view recruitment and selection, retention, turnover, training, and employee engagement as crucial. These are the areas where management uses HR analytics for tackling big data and improving performance. The study further highlights the value addition HR analytics provides. By analyzing the interconnections between various factors through co-occurrence network analysis, the study shows that the importance management attaches to workforce data (through effective HR practices) while making strategic decisions plays a crucial role in enhancing the performance of the organization. [ABSTRACT FROM AUTHOR]