Recreating Efficient Framework for Resource-Constrained Environment: HR Analytics and Its Trends for Society 5.0

Abstract

The human resource (HR) management is no longer limited to the hiring and firing of employees. It has gradually, yet quintessentially, transformed from being an operational partner to more of a strategic partner that paves the way for the success of its organization. Keeping in view the augmented role and responsibilities of the HR and the rapidly changing technologies, relying on archaic norms and methods of working would certainly not suffice. Today, more and more organizations are realizing this paradigm shift in the contribution of the HR teams and are thus empowering them with data science. Data science or Data analytics is the scientific approach used to derive knowledge and insight from the gigantic raw data to assist in decision making, which is otherwise difficult to analyse manually. When data science is applied in the area of human resource management it is called HR Analytics or People Analytics. It is a relatively novel, nevertheless burgeoning concept in the field of business organizations, especially the HR. Despite being novel, there has been a surge in the usage of algorithms, predictive analytics, artificial intelligence, machine learning etc. in the various facets of HR. The major benefits of incorporating data analytics in the HR field includes taking more accurate and “data-driven-decisions,” saving on cost and time, enhancing strategic thinking, and providing a better insight of both the internal and external environment of an organization. The relevance of using analytics is further indispensable because majority of the organizations are working in a resource constrained environment; thus they cannot afford to go wrong on decisions. This chapter has three sections: the first one conceptualises HR analytics through its explanation, relevance and benefits in this hypercompetitive business scenario; second, it divulges certain applications of data analytics in HR functions like recruitment, employee performance, etc. along with briefly discussing certain recent trends like R, Python, and Business Intelligence, etc. that are being universally used in the field of HR management in various organizations. Lastly, it examines pertinent challenges faced by HR teams and organizations per se in implementing HR analytics effectively, followed by recommending a framework for the same.