Conceptualizing Business Value Creation through Human Resource Analytics

Interest in HR Analytics has grown substantially recently, leading to a need in research and practice for a better understanding of what Business Analytics (BA) Capabilities an organization needs to build for Human Resource Analytics (HR Analytics) and how value is created using these capabilities. The purpose of this paper is to address this need through a conceptualization of what organizational capabilities are used for value creation through HR Analytics and how value is created using these capabilities. Recent academic literature on HR Analytics is reviewed on the existence of models or frameworks that conceptualize value creation through HR Analytics. As no such model was found in the selected HR Analytics literature, general BA literature was examined. A recent model from BA literature was used as a basis and refined using recent advancements in literature. These refinements lead to a proposed HR Analytics Process Model. A first preliminary evaluation of the refinements indicates that the concepts of the refinements of the model can be observed in most descriptions of a selection of academic case studies on HR Analytics. Further (primary) research is needed to further develop and validate the model.