The Challenges of HR Analytics in a Data-Driven World

Abstract

This paper aims to shed some light on the emerging field of HR and People Analytics, a topic that has been increasingly popular and growing in recent years. Starting with digital transformation, we will examine how this shift has changed the way we think about and manage human resources processes. This change has been driven by the expansion of new technologies, such as artificial intelligence and increasingly precise machine learning algorithms, and especially by big data, which are becoming valuable sources of information for HR departments within companies. While this development addresses the needs and demands of companies and their stakeholders, it also raises numerous questions and concerns regarding the ethics and privacy of these highly sensitive data. The boundary between legitimate interest and unjustified intrusion is still not clearly defined. Through the study of a practical case, we will try to outline an HR Analytics process from start to finish, while also attempting to tackle the challenge of respecting employee privacy and promoting an ethical and genuinely useful use of modern practices in HR Analytics.