HR and analytics: why HR is set to fail the big data challenge

• Author: Andy Charlwood,Mark Lawrence,Mark Stuart,David Angrave,Ian Kirkpatrick
• Published date: 01 January 2016
• Date: 01 January 2016
• DOI: http://doi.org/10.1111/1748-8583.12090

HR and analytics: why HR is set to fail the big

data challenge

David Angrave, Management School,University of Sheffield

Andy Charlwood,School of Business and Economics, Loughborough University

Ian Kirkpatrick, Leeds Institute forData Analytics, Leeds University Business School

Mark Lawrence,Independent Strategic HR AnalyticsConsultant

Mark Stuart, Leeds University Business School

Human Resource Management Journal, Vol 26, no 1, 2016,pages 1–11

The HR worldis abuzz with talk of big dataand the transformative potential of HR analytics.This article takes

issue withoptimistic accounts,which hail HR analyticsas a ‘must have’capabilitythat will ensure HR’sfuture

as a strategic management function while transforming organisational performance for the better. It argues

that unless the HR profession wises up to both the potential and drawbacks of this emerging field and engages

operationally and strategically to develop better methods and approaches, it is unlikely that existing practices

of HR analytics will deliver transformational change. Indeed, it is possible that current trends will seal the

exclusion of HR from strategic, board-level influence while doing little to benefit organisations and actively

damaging the interests of employees.

Contact: Professor Andy Charlwood,School of Business and Economics,Loughborough University,

LoughboroughLE11 3TU, UK. Email: a.charlwood@lboro.ac.uk

Keywords: HR analytics; big data; human resource information systems

INTRODUCTION

Analytics is the discipline, which has developed at the intersection of engineering,

computer science, decision-making and quantitative methods to organise, analyse

and make sense of the increasing amounts of data being generated by contemporary

societies (Mortensen et al., 2015). Analytics has been described as a ‘must have’capability for

the HR profession, a tool for creating value from people and a pathway to broadening the

strategic influence of the HR function (CIPD, 2013). The centralargument of this article is that

the development of HR analytics is being hampered by a lack of understanding of analytical

thinking by the HR profession. This problem is compounded by the HR analytics industry,

which is largely based around products and services, which too often fail to provide the tools

for HR to create and capturethe strategic value of HR data. Unless the HR profession wises up

to both the potential and pitfalls of analytics, we contend that HR analytics is likely to have a

number of negative consequences for the HR profession itself, for workers and for

organisations. Specifically, there is a risk that analytics will further embed finance and

engineering perspectives on people management at boardroom level in ways that will restrict

the strategic influence of the HR profession. It may also damage the quality of working life

and employee well-being, without delivering sustainable competitive advantage to the

organisations that adopt it. This argument is a deliberately provocative one. It is based on

a careful reading of the literature combined with what we have learnt from engagement with

HR and analytics professionals rather than on a carefull y constructed programme of

academic research. When we discuss analytics with HR professionals with an interest in

the subject, we hear many of the themes and concerns that this article raises being echoed

HUMAN RESOURCEMANAGEMENT JOURNAL, VOL 26, NO 1, 2016 1

©2016 John Wiley& Sons Ltd.

Pleasecite thisarticle in pressas: Angrave, D.,Charlwood, A.,Kirkpatrick, I.,Lawrence, M. andStuart M. (2016)‘HR and analytics:why HR is set to fail the

big data chall enge’.HumanResource ManagementJournal 26: 1, 1–11

PROVOCATION SERIES PAPER

doi: 10.1111/1748-8583.12090

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