A Critical Review of Algorithms in HRM: Definition, Theory, and Practice

Abstract

The recent surge of interest concerning data analytics in both business and academia has been accompanied by significant advances in the commercialization of HRM (Human Resource Management)-related algorithmic applications. Our literature search uncovered 22 high-quality academic papers and 122 practitioner-oriented items (e.g., popular press and trade journals). As part of our review, we draw several distinctions between the typical use of HRM algorithms and more traditional statistical applications. We find that while HRM algorithmic applications tend not to be especially theory-driven, the “black box” label often invoked by critics of these efforts is not entirely appropriate. Instead, HRM-related algorithms are best characterized as heuristics. In considering the implications of our findings, we note that there is already evidence of a research-practitioner divide; relative to scholarly efforts, practitioner interest in HRM algorithms has grown exponentially in recent years.