Exploring HR Intelligence Practices in Fortune 1000 and Select Global Firms

Abstract

This study investigated the extent to which Fortune 1000 and select global firms perform HR research and analytics activities, how these disparate data collection efforts facilitate HR strategy, decision making, and execution, and the ethical implications associated with the use of predictive analytics in the context of HR decision-making. The study used a quantitative descriptive research design using a customized, web-based survey instrument. A convenience sample of 3,062 HR professionals was invited to participate in the study, which returned 220 completed questionnaires, each representing a different company. The results validated the current types of HR research and analytics practices in high-performing firms and their relative importance in terms of facilitating HR strategy and decision making. The results also reveal how HR research and analytics functions are organized and structured. The majority of high-performing firms have a dedicated HR research and analytics function that is strategically positioned in the organization in terms of its reporting relationship (e.g., either reporting to the CHRO or one level down). The results also suggest that HR analytics and HR intelligence mean different things to different people. For some, HR analytics means tracking and communicating HR metrics and indicators, whereas for others it means conducting advanced predictive analytics and sophisticated causal modeling procedures. Lastly, this study attempted to explore ethical judgments on selected practices pertaining to human capital decisions in the broadest sense. Results varied and were inconclusive; however, it is quite likely that individual ethical judgments vary and depend on the nature of the capital decision required (e.g., hiring, job/work assignments, performance management, advancement/promotion, demotion, reduction-in-force efforts). In conclusion, the results of the study suggest that the landscape for using HR management data and information has shifted dramatically, and that leading companies are building strategic capabilities and competitive advantage through advanced HR analytics practices. However, much more research is needed on ethical issues associated with HR research and predictive analytics.%%%%Ed.D., Educational Leadership and Management – Drexel University, 2015