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

Date08 April 2019
DOIhttps://doi.org/10.1108/SHR-11-2018-0096
Pages42-46
Published date08 April 2019
AuthorMichael DiClaudio
Subject MatterHR & organizational behaviour,Employee behaviour
People analytics and the rise of HR: how
data, analytics and emerging technology
can transform human resources (HR) into a
prot center
Michael DiClaudio
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 achievethis.
Design/methodology/approach The evolution of the ‘‘Future of HR’’ and how it is moving from
‘‘descriptiveand diagnostic’’ to ‘‘prescriptiveand 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 lis ted
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 initi ative for them over the next one to
two years, and only 12 per cent cite analytics as a top management concer n.
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
infinitelygreater amounts of information about customers.
Practical implications Today’s workforce analytics focusesmostly on what happened and why. For
instance, you might have tools for identifying areas of high turnover and diagnosing the reasons. But
thanks to advancementsin technology and data analytics capabilities, HR is better-positioned to be the
predictiveengine required for the organization’ssuccess.
Social implications There has neverbeen a better time for HR to create greater strategicvalue, 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 integratepeople data with other data sources, such as
customerrelationship 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.
Keywords Change management, Human resource management, Capabilities, Future of HR,
Workforce analytics, Workplace shaping
Paper type Viewpoint
Employee and workforce insights are the greatest competitive advantage sought but
not fully realized by organizations dealing withthe 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.
Michael DiClaudio is a
Principal, Advisory, KPMG
LLP, Detroit, Michigan,
USA.
PAGE 42 jSTRATEGIC HR REVIEW jVOL. 18 NO. 2 2019, pp. 42-46, ©Emerald Publishing Limited, ISSN 1475-4398 DOI 10.1108/SHR-11-2018-0096

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