HR Analytics for Competitive Advantage: Bringing organisational value while empowering the HR profession

Sammanfattning: Title: HR Analytics for Competitive Advantage: Bringing organisational value while empowering the HR profession Authors: Elin Engsfelt & Louise Rosén Fång Supervisor: Rikard Larsson Problem definition: The HR profession has throughout history, and still has, a legitimacy problem, where the HR department typically becomes administrative support, rather than a strategic business partner. Purpose: Explore HR professionals' perceptions and opinions on the use of HR Analytics in their work and identify the functions and challenges that HR Analytics brings to the organisation, the HR department, and the HR profession. Methodology: A qualitative research approach has been chosen. A comprehensive and substantial review of today’s research on HR Analytics has been executed. Further, empirical data has been collected from online interviews where ten HR professionals based in Sweden participated. Findings: This study has identified several functions of HR Analytics across organisational processes, HR processes and the HR profession. Most importantly, empirical support has been found for a new function, the legitimating-advocating function. In addition to this, challenges of implementing and using HR Analytics have been identified on the three levels. Finally, the findings show that knowledge and feelings towards adopting something new affect to what degree HR Analytics is being utilised among HR professionals and organisations. To broaden the use of HR Analytics, motivational drivers must be met to facilitate the adoption process. Conclusions: Adopting HR Analytics brings competitive advantages to the organisation, HR processes, and the HR profession. Furthermore, as HR professionals take ownership of the adoption of HR Analytics, the HR profession will be empowered and its legitimacy will increase. Key Words: HR Analytics, Artificial Intelligence (AI), Human Resources (HR), Legitimacy, HR Profession, HR Processes, Organisational Processes, Diffusion of Innovation Theory (DOI), Four Stages of Analytics, Isomorphism, Functions, Challenges