An ROI-based review of HR analytics: practical implementation tools

Research output: Contribution to journalReview articlepeer-review

77 Scopus citations

Abstract

Purpose: The purpose of this paper is to provide a return on investment (ROI) based review of human resources (HR) analytics. The objectives of this paper are twofold: first, to offer an integrative analysis of the literature on the topic of HR analytics in order to provide scholars and practitioners a comprehensive yet practical ROI-based view on the topic; second, to provide practical implementation tools in order to assist decision makers concerning questions of whether and in which format to implement HR analytics by highlighting specific directions as to where the expected ROI may be found. Design/methodology/approach: This paper is a review paper in which a four-step review and analysis methodology is implemented. Findings: Study results indicate that empirical and conceptual studies in HR analytics generate higher ROI compared to technical- and case-based studies. Additionally, study results indicate that workforce planning and recruitment and selection are two HR tasks, which yield the highest ROI. Practical implications: The results of this study provide practical information for HR professionals aiming to adopt HR analytics. The ROI-based approach to HR analytics presented in this study provides a robust tool to compare and contrast different dilemma and associated value that can be derived from conducting the various types of HR analytics projects. Originality/value: A framework is presented that aggregates the findings and clarifies how various HR analytics tools influence ROI and how these relationships can be explained.

Original languageEnglish
Pages (from-to)1429-1448
Number of pages20
JournalPersonnel Review
Volume48
Issue number6
DOIs
StatePublished - 23 Aug 2019
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2019, Emerald Publishing Limited.

Keywords

  • Human resource management
  • Literature review
  • Mixed methodologies
  • Quantitative
  • Return on investment
  • Strategic human resource management (SHRM)

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