Unveiling People Analytics and Organizations: A Critical Literature Review

Abstract

The burgeoning field of people analytics represents a paradigm shift in human resource management, driven by the digital transformation that is sweeping across organizations worldwide. This critical literature review delves into the multifaceted impacts of people analytics on organizations, emphasizing its role in transforming HR into a profit center, enhancing employee performance and well-being, and integrating artificial intelligence (AI) with HR practices. By synthesizing findings from recent studies and case examples, the review illuminates the transformative potential of people analytics alongside the complexities it introduces, such as ethical dilemmas and the challenges of workforce analytics. People analytics emerges as a pivotal tool for organizations seeking a competitive edge through data-driven decision-making. Its contributions extend beyond enhancing traditional HR functions, aiding in talent acquisition, driving employee engagement, and predicting future workforce trends. However, the adoption of people analytics and AI technologies also presents ethical considerations and necessitates a delicate balance to harness their benefits without undermining employee trust and organizational values. The review employs a systematic methodology, including thematic analysis, to explore the strategic implementation of HR analytics, ethical considerations, practical applications, and the integration of AI in HR practices. Recommendations are provided to develop a balanced approach to people analytics, establish ethical guidelines, bridge the gap between theory and practice, and foster a culture of continuous learning and adaptability. This critical examination underscores the significance of people analytics in contemporary organizational contexts, advocating for a holistic approach that considers both the opportunities and challenges posed by data-driven HR practices. As organizations navigate the digital era, embracing people analytics can lead to more effective, engaged, and sustainable workforces, provided that ethical and practical considerations are addressed.