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Cited by 84AI and HR TechnologiesHuman Resource and Talent ManagementBig Data and Business Intelligence

People analytics and the rise of HR: how data, analytics and emerging technology can transform human resources (HR) into a profit center

DiClaudio, Michael·2019·Strategic HR Review
DOI 10.1108/shr-11-2018-0096
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Abstract

Purpose: Employee and workforce insights are the greatest competitive advantage for organizations dealing with the disruption and uncertainty driving dramatic changes in today’s workplace. Embedded in this is the growing expectation of the human resource (HR) function to understand how workforce analytics informs the business and fuels success. This paper aims to explore how the HR function can achieve this. Design/methodology/approach: The evolution of the “Future of HR” and how it is moving from “descriptive and diagnostic” to “prescriptive and predictive.” Findings: According to KPMG’s 2019 Future of HR survey: 37 per cent of respondents feel “very confident” about HR’s actual ability to transform and move them forward via key capabilities such as analytics and artificial intelligence (AI). Over the next year or two, 60 per cent say they plan to invest in predictive analytics. Among those who have invested in AI to date, 88 per cent call the investment worthwhile, with analytics listed as a main priority (33 per cent). Despite data’s remarkable ability to deliver news insights and enhance decision-making, 20 per cent of HR believe analytics will be a primary HR initiative for them over the next one to two years, and only 12 per cent cite analytics as a top management concern. Research limitations/implications: Taking a page from meeting customer needs, innovative technologies such as AI and the cloud, data analytics can give an organization the potential to gather infinitely greater amounts of information about customers. Practical implications: Today’s workforce analytics focuses mostly on what happened and why. For instance, you might have tools for identifying areas of high turnover and diagnosing the reasons. But thanks to advancements in technology and data analytics capabilities, HR is better-positioned to be the predictive engine required for the organization’s success. Social implications: There has never been a better time for HR to create greater strategic value, as the potential for meaningful workforce insights and analytics comes within reach. Even advancements in cloud-based systems for human capital management are coming packaged with analytics and visualization capabilities, enabling HR leaders to integrate people data with other data sources, such as customer relationship management, for a full view of the business. Originality/value: This paper will be of value to HR leaders and practitioners who wish to use predictive analytics and emerging technology to drive performance improvement and gain the insights about their workforces.

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  • Most literature emphasises the importance, benefits, key considerations and challenges in establishing AI-augmented HRM practices in organisations.

    “Most literature emphasises the importance, benefits, key considerations and challenges in establishing AI-augmented HRM practices in organisations”

    From AI-augmented HRM: Antecedents, assimilation and multilevel consequences (2023) · cites this paper as DiClaudio, 2019

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Authors
DiClaudio, M.
Affiliations
KPMG (United States) (US)
Corresponding author
DiClaudio, Michael
Venue
Strategic HR Review
Publisher
Emerald
Published
2019-04-08
Volume
18
Issue
2
Pages
42-46
ISSN
1475-4398 (ISSN-L)
DOI
10.1108/shr-11-2018-0096
OpenAlex
W2912460969
Cited by
84
References
0
Citations by year
2026: 6 · 2025: 15 · 2024: 22 · 2023: 15 · 2022: 12 · 2021: 11 · 2020: 2 · 2019: 1
FWCI
9.12
Type
journal article
Language
en
Open access
closed
Licence
www.emerald.com/insight/site-policies (tdm)
Locations
Strategic HR Review (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › AI and HR Technologies
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Human Resource and Talent Management
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Big Data and Business Intelligence
Keywords
HR analytics, workforce analytics, predictive analytics, future of HR, artificial intelligence in HR, human capital management, prescriptive analytics, data-driven decision making, employee turnover

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