RESEARCH PROJECT

ON

“FACTORS AFFECTING ADOPTION OF HUMAN

RESOURCE ANALYTICS”

Submitted in the Partial Fulfilment for the Award of the Degree of

Master of Business Administration in Human Resource Development

Submitted by:
Rajnish
MBA – Human Resource Development
Batch: 2018 - 2020
Roll No.: 50503

Under the Guidance of:

Dr. Rinku Mahindru
Assistant Professor
Department of Commerce
University of Delhi

Department of Commerce
Delhi School of
Economics University of
Delhi

i
 DECLARATION

I, Rajnish hereby declare that the present work entitled “Factors Affecting Adoption of
Human Resource Analytics” has been done by me under the guidance of Dr Rinku
Mahindru for the partial fulfilment of the requirement for the award of the degree of “Master
of Business Administration in Human Resource Development” from Department of
Commerce, Delhi School of Economics, University of Delhi.

This is an original work based on my understanding of the subject and I have not submitted it
in part or full earlier, for the award of any other degree or diploma of this or any other
University or Institute. Any material referred is duly acknowledged.

Rajnish
MBA – Human Resource Development
Batch: 2018 - 20
Roll No.:

2
 CERTIFICATE FROM GUIDE

This is to certify that the project titled “Factors Affecting Adoption of Human Resource
Analytics” is an academic work done by “Rajnish” submitted in the partial fulfilment of the
requirement for the award of the degree of “Master of Business Administration in Human
Resource Development” from Department of Commerce, Delhi School of Economics,
University of Delhi, conducted under my guidance.

To the best of my knowledge and belief the data and information presented by her in the
project has not been submitted earlier elsewhere.

Dr. Rinku Mahindru

Assistant Professor
Department of Commerce
Delhi School of Economics
University of Delhi

3
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Department of Commerce, Delhi School of
Economics, University of Delhi for imparting us very valuable professional training in
MBA.

I pay my gratitude and sincere regards to Dr. Rinku Mahindru, as she has been a constant
source of motivation and inspiration. I am also thankful to her for giving her suggestions and
encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our office and library staff
members for providing me opportunity to best utilize the available resources for the
completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment which enhanced my knowledge.

Rajnish
MBA – Human Resource Development
Batch: 2018 - 20
Roll No.:

4
 CONTENTS

CHAPTER – I INTRODUCTION
Introduction 7
Relevance of the Study 7
Objective of the Study 8
Hypotheses of the Study 9
Organisation of the Study 10

CHAPTER – II REVIEW OF LITERATURE

Business Intelligence 11
Business Analytics 12
Big Data 12
Human Resource Analytics 13
Diffusion Innovation Theory 15
Theory of Reasoned Action 16
Technology Acceptance Model 16
Unified Theory of Acceptance and Use of Technology 17
Social Environment factors 19
Internal behavior factors 21

CHAPTER – III RESEARCH METHODOLOGY

Research Framework 25
Hypotheses Development 26
Research Method 27
Sample Size 27
Method of Data Collection 28
Sampling Method 29
3.7 Statistical Technique 30

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 CHAPTER – IV ANALYSIS AND INTERPRETATIONS
Sample characterstics 31
Analysis 37

CHAPTER –V CONCLUSION
Individual Level Adoption 39
Role of Organisation 42
Implications for Practice 42
Limitations 44
Recommendations for future research 4
Summary 46

References 47
Annexure 49

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 CHAPTER – I
Introduction
Introduction

Human Resource Analytics is defined as the systematic identification, quantification and

analysis of the people drivers of business outcomes. In other words, it is a data driven
approach towards Human Resource Management (HRM). Using HR Analytics is an
increasingly important part of the decision making process of human resource professionals.
Analyzing data to draw conclusions based on factual evidence is more likely to be an
objective decision, than those decisions that are made with intuition.
Studies have shown that companies now rank HR Analytics as one of the most important
innovations in the field of technology. The use of HR Analytics can help in the transition
from performance management systems’ tools, which store past and current data, to
performance management analytics, which use stored data to understand and predict business
needs and increase productivity. The development of this relationship between systems’ tools
and the utilization of HR Analytics encompasses performance management through improved
planning and sourcing, which ensures goals are consistently met in an effective and efficient
manner. The use of HR Analytics also helps in the area of talent management, which, in turn,
increases productivity through understanding the training and development that will be
needed. (Rafter, 2013)

Relevance of the Study

The importance of HR Analytics is increasing day by day with the integration of technology
in every sphere of business. The acceptance of HR Analytics will help organizations attain
competitive advantage by enabling them to create a stronger link to hire and retain top talent.
On the contrary, failure to accept HR Analytics will have an adverse effect on the
organization’s competitive advantage. Similarly,

Despite it being crucial these days, not many HR professionals implement HR Analytics in
their organisation. much of the literature points to the lack of business savvy and lack of
financial knowledge that HR professionals had and some continue to have. Not understanding

7
 or being comfortable with quantitative data definitely appears to be one of the factors
affecting the adoption of these innovations in HR. (Bassi, 2013). As times change new causes
have come up which need to be identified and measured. This study aims to uncover the
abovesaid causes with focus on individual adoption of HR Analytics.

Objective of the study

The purpose of this study is to gain insight as to the reasons why more HR professionals are
not using HR Analytics to improve organizational performance in order to gain and maintain
a competitive advantage. Could Personal behavior and social Enviornment be the factors that
may act as barriers that impede HR professionals’ adoption of HR Analytics?

For companies to be successful in today’s global environment, the pursuit of innovation, in

general, must be accepted to gain a competitive advantage (Bersin, 2013). HR professionals
understand that hiring and retaining the right talent is an integral part of a company’s success.
Companies such as Best Buy, Sysco, SAP America, Inc., Marriott Vacation Club, and others
use HR Analytics to track engagement, incentives, leadership, absenteeism, and other trends.
If these companies have shown there is a competitive and financial advantage to using HR
Analytics, why are not more companies using HR Analytics? If organizations have a desire to
use analytics, then there is a lack of connection between what the organization desires and
what the HR professional can deliver. (Bassi, 2013)

HR Analytics is being used in some companies, yielding success in terms of the

organizations’ performance and the decision-making processes in HR. Collectively, the use
of HR Analytics is important for improvement of not only the performance of the employees
of an organization but also the improvement of the performance of the organization as a
whole. (Bassi, 2013)

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Hypotheses of the Study

The factors affecting the adoption of HR Analytics has been studied by developing the
following eight hypotheses:-

H1 – There is no correlation between Personal behavior and Individual level adoption of HR

Analytics.
H2 – There will be no significant prediction of Individual level adoption of HR Analytics from
Personal behavior.
H3 – There is no correlation between Social Environment level and Individual level adoption of HR
Analytics
H4 – There will be no significant prediction of level adoption of HR analytics from social
environment.

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Organisation of the Study

The study has been divided into five chapters:-

The current chapter, i.e. Chapter One, gives an introduction of the study undertaken. It
provides an outline of HR Analytics and its rising importance in business. The chapter further
presents the relevance of the study, objective of the study, hypotheses of the study and
research methodology used.

Chapter Two reviews the literature providing the basics of Big Data, Business Analytics, HR
Analytics and how they are linked to Human Resource Management. It also gives a brief of
various theories and models which show the factors affecting adoption of technology.

Chapter Three gives a comprehensive account of the research methodology used which
includes research framework, hypotheses development, research design, sample constitution
and sampling method.

Chapter four provides the analysis and interpretation of the responses received from various
HR professionals. It seeks to understand the factors which cause a person to adopt or not
adopt HR Analytics in their job.

Chapter Five concludes the dissertation by giving the summary and conclusion of the
analysis. It also includes recommendations and limitations of the study.

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 CHAPTER – II
Review of Literature

The literature reviewed included industry- specific practitioner articles and surveys, as well
as books written by researchers in the field of HR metrics and analytics. This research
investigates factors that can be barriers to the adoption of HR Analytics among HR
professionals.

Business Intelligence

According to Cokins, Business Intelligence consumes and packages stored information to

answer basic questions. It summarizes historical data, typically in table reports and graphs, as
a means for data-mining queries and drill-downs. Many organizations are using some form of
data tool, and Business Intelligence has had, and will continue to have, a vast effect on how
people live and work. Organizations using data through Business Intelligence have an edge
over other organizations in the area of competitive advantage. These early adopters of this
booming technology have produced substantial value by predicting behaviors or patterns.

According to Fitz-enz, due to insufficient data on the organizations’ human capital, work on
Business Intelligence had not included HR data or predictive HR Analytics, which would be
beneficial for the organization. HR departments have and continue to gather information
concerning their employees; they should use that information not just for what has occurred
in the past but also to incorporate the past data with current data and utilize technological
resources to look toward the future.

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Business Analytics

Business Analytics (BA) is data that amplifies its value by converting huge volumes of data
into much smaller amounts of information that can provide valuable insight (Cokins, 2013).
Business Analytics is comprised of human competencies, technological elements, and
specific business processes. Business Analytics is linked to business strategy, which
encompasses the organization’s mission and vision, which is important to the HR
professional for organizational alignment. With the use of Business Analytics, organizations
can take the approach that their employees are their internal customers and thereby use the
data from personnel files that include education, career paths, gender, age, and absenteeism to
predict retention, performance, and motivation. (Laursen & Thorlund, 2010)

HR professionals always have known that the people are an organization’s most important
asset, and therefore integrating workforce analytics with Business Analytics will augment the
significance of organizational performance. “The biggest hurdle here may be the culture that
exists in the HR departments, which has a strong focus on creativity and soft values”.
(Laursen & Thorlund, 2010)

Big Data

Big Data (BD), as defined by Manyika, is vast quantities of information, which can be
processed and analyzed instantly to draw conclusions. Scholarly articles, as well as articles
written by and for practitioners, suggest the use of Big Data will change the decision-making
process in many organizations to become the new competitive advantage (Manyika, et al.,
2011). Additionally, in a McKinsey & Company research report, Big Data was labelled “the
next frontier for innovation, competition, and productivity” (Manyika, et al., 2011). Big Data,
by definition, encompasses exploring large amounts of data (Bersin, 2013) that must be
stored. Data storage has come a long way from a kilobyte. There is now the ability to store
amounts of data in terabytes, petabytes, exabytes, zettabytes, and yottabytes. Big Data has
and will “continue to evolve at a very fast pace, driven by innovation in the underlying
technologies, platforms/systems, and analytic capabilities for handling data, as well as
the evolution of

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 behavior among its users as more and more individuals live digital lives”. (Manyika, et al.,
2011)

What does this mean for organizations and HR, in particular? Software companies such as
SuccessFactors Inc., Automatic Data Processing (ADP), Taleo Corp., and others are working
diligently to be the first and best to provide organizations with the tools to help organizations’
employees use analytics (Gale, 2014). However, some organizations have too many different
platforms, which poses a problem if the platforms cannot be integrated (Bersin, 2013).
According to Rafter, “Big Data doesn’t just refer to information obtained from inside a
company’s current employee records or operations, but to a mix of personnel data and
information from competitors, industry or other benchmarks”. Therefore, organizations must
look to study properly their data about people to drive their overall organizational
performance the seamless integration of multiple applications and skill sets in advanced
analytics are a necessity. (Rafter, 2013)

Big Data is no longer just the domain of actuaries and scientists. Big Data is the new thing
that will see some companies leapfrog others to become best in class. There is much written
on Big Data concerning retailers and how companies can track consumer purchases, which, if
marketed correctly, leads to more profitability (Bersin, 2013). This provides an opportunity
for HR professionals to use Big Data in the area of better decision-making (Fitz-enz, 2010).
Big Data is moving into the world of HR and becoming the new HR metrics.

Combining the HR data with the business data can no longer be viewed as an option; it must
now be a requisite if HR wants to be part of the organization’s growth and competitive
advantage. HR professionals must change their paradigm of processes and increase their skill
sets in order to engage and participate in the use of this new trend. HR professionals must
find a way to apply HR Analytics for better decision-making and stop working merely on
intuition. (Bersin, 2013)

Human Resource Analytics

Bassi defined HR Analytics as “the application of a methodology and integrated process for
improving the quality of people-related decisions for the purpose of improving individual

13
and/or organizational performance” (Bassi, 2013). Using HR Analytics will take the HR
profession to a different level in becoming a true strategic business partner. The use of HR
Analytics is considered a broader and much more useful view of data than only HR metrics
and can provide an analysis of the organization as a whole (Fitz-enz, 2010). For example,
these metrics will enhance HR’s ability to not only know the turnover rate but also to know
where it would be most beneficial to allocate the necessary resources to reduce or prevent
turnover.

HR Analytics has become a major topic in organizations locally as well as globally. Although
metrics in human resource management (HRM) have been available for decades, there is
currently a paradigm shift. An important driver of HR metrics and analytics has been the
integration and implementation of Human Resource Information Systems (HRIS), which
stemmed from the uncertainties of technology in the year 2000. Similarly, the adoption of
HRIS shifted HRM from slower manual processes used by HR professionals to quicker, more
fluid processes using technology, thereby increasing the capabilities of the organization. This
attention to HR Analytics comes at a time where there is opportunity as well a necessity.
Opportunity for the use of HR Analytics is gaining momentum as more and more data is
becoming available. The availability of this data will lead to the needs that may arise from the
growing significance of HRM and the path to profitability (Bassi, 2013). In order to use
human capital more effectively, HR Analytics will assist in predicting behaviors of
employees, which, in turn, will benefit the decisions made in the investment in HR.
According to Ranjan & Basak, “the scope and approach to HR Analytics should be
determined based on contextual factors such as objective, internal readiness, investment
appetite, and target timeframe to achieve the objective”. (Ranjan & Basak, 2013)

What keeps HR professionals from embracing HR Analytics through the use of Big Data and
adopting this new innovation? Some early adopters of HR Analytics who have had positive
results are Google, SAP, Xerox, PepsiCo, FedEx Corp., and Aetna Inc., just to name a few
(Rafter, 2013). In an article titled “How Google Became the #3 Most Valuable Firm by Using
People Analytics to Reinvent HR,” Sullivan (2013) writes, “Google has the only HR function
on the planet that is managed based on people analytics. Google moved into the No. 3
position among the most valuable firms in the world”. Xerox revolutionized the candidate
screening for their call centres by utilizing Big Data and predictive analytics; the result was a
turnover decrease of 20%. (Rafter, 2013)

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 At the individual level, there have been studies using a variety of constructs to explain why
people do or do not accept innovation. When reviewing the literature on user acceptance, it
was noted that researchers have used a wide range of models and theories of individual
acceptance, eight to be specific:
(a) Theory of Reasoned Action (TRA)
(b) Technology Acceptance Model (TAM)
(c) Theory of Planned Behaviour (TPB)
(d) Motivation model
(e) Diffusion of Innovation Theory (DOI)
(f) Social Cognitive Theory
(g) PC utilization model
(h) A combination of the TAM and TPB (Venkatesh et al., 2003)

Diffusion of Innovation Theory

Diffusion of innovation (DOI) theory was first introduced by Rogers in 1962 when he was
puzzled as to why farmers had adopted new, potentially beneficial agricultural practices at a
slow rate or not at all (Rogers, 2003).
Rogers defines diffusion as a communication process concerned with sharing new ideas with
some amount of uncertainty. Diffusion research has been conducted in many different
disciplines, yet there appears to be a similar body of thoughts and generalizations. Rogers
explains there are four main elements in the diffusion process: innovation, communication
through channels, communication within a time frame, and communication through members
of social systems. Innovation is defined as “an idea, practice, or object that is perceived as
new by an individual or other unit of adoption”. According to Rogers, most innovations
researched with regard to diffusion have been in the area of technology. As defined by
Rogers, “technology is a design for instrumental action that reduces the uncertainty in the
cause-effect relationships involved in achieving a desired outcome”. For this study, the
innovation is the use of HR Analytics as it relates to gaining competitive advantage through
better decision making about Human Resource Management.

As stated by Rogers, members of the social system determine if and at what rate the
innovation is adopted by their perceptions of relative advantage, compatibility, complexity,
trialability,
15
 and observability. These also are known as the five traits of innovation. This study reviews
complexity, trialability, and observability as they pertain to factors of adoption at the
individual level. Diffusion involves time, which, according to Rogers, includes
innovativeness that categorizes members of the social system as (a) innovators, (b) early
adopters, (c) early majority, (d) late majority, and (e) laggards. The innovation-decision
process, which leads to adoption or rejection of an innovation, occurs within a 5-step process
that includes (a) knowledge, (b) persuasion, (c) decision, (d) implementation, and (e)
confirmation that an innovation’s rate of adoption is the speed at which the innovation is
adopted. These attributes are consistent with those of individual adopters of innovations,
which is the focus of this study.

Last, the social system consists of members who are involved in solving problems together in
an effort to achieve the same goal. Members of the social system are considered either
opinion leaders or change agents, some of whom can influence the adoption of the
innovation, slow down the diffusion, or reject the acceptance of the innovation all together.
(Rogers, 2003)

Theory of Reasoned Action

The theory of reasoned action (TRA), which was first introduced and eventually developed in
1967 by Fishbein & Ajzen, explains the individual’s behavior of acceptance. The TRA
model suggests that an individual’s execution of a particular behavior is governed by his or
her behavioral intent to actually execute the behavior, and the intent to execute the behavior
is mutually controlled by two elements. These elements are the individual’s attitude toward
the behavior and the general norm concerning the behavior. Accordingly, a behavior is more
likely to be performed if, in fact, the individual has a positive attitude toward the behavior.
(Fishbein & Ajzen, 1975)

Technology Acceptance Model

In an effort to understand why information technology is either accepted or rejected, Davis

began researching adoption models and focused specifically on two of the most important
elements: (a) perceived usefulness and (b) ease of use. Hence, Technology Acceptance Model
was developed. Technology Acceptance Model is an extension of Fishbein & Ajzen’s Theory
16
of Reasoned Action and is used to investigate the elements of acceptance of technology and,

17
 in other cases, innovation. Technology Acceptance Model considers the behavior as the use
of a technological system. (Davis, 1989)

Effort Expectancy
According to Davis, effort expectancy is used interchangeably with perceived ease of use,
which refers to “the degree to which a person believes that using a particular system would be
free of effort”. Hence, the individual’s adoption is influenced by whether or not the individual
perceives the innovation as difficult to perform. Similarly, Albert Bandura’s vast research on
self-efficacy reinforces perceived ease of use. (Davis, 1989)

Performance Expectancy
Performance expectancy is used interchangeably with perceived usefulness, and, as defined
by Davis, is “the degree to which a person believes that using a particular system would
enhance his or her job performance”. Individuals will choose whether or not to use a
particular application if the individuals tend to believe using the application will positively
affect their job performance. However, although the individual users may believe an
application would be useful, it does not necessarily mean the application or innovation may
be easy to use. As a result, the individuals may believe the effort and difficulties of learning
the application or innovation exceeds the benefit of the effects on their job performance.
Therefore, it offsets the benefit of using or adopting the innovation. Hence, in addition to
usefulness, usage is also theorized to be influenced by the ‘ease of use’. Perceived usefulness
has been shown by many researchers, to be a strong predictor and continues to be significant
in measurements. (Davis, 1989)

Unified Theory of Acceptance and Use of Technology

For many years, acceptance research in the discipline of information technology and
information systems produced many competing models. As a result, the Unified Theory of
Acceptance and Use of Technology (UTAUT) was developed and tested by Venkatesh et al.,
all of whom compared eight models to formulate, test, and empirically validate Unified
Theory of Acceptance and Use of Technology. The model included Theory of Reasoned
Actions, Technology Acceptance Model, Theory of Planned Behavior, and others. Whereas
Technology Acceptance Model proposed two constructs (perceived usefulness and ease of
use) influencing
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the behavior of the individual’s adoption, Unified Theory of Acceptance and Use of
Technology proposed additional constructs, such as social influence and facilitating
conditions, inclusive of moderating variables. Constructs also included in their model were
performance expectancy, effort expectancy, social influence, and facilitating conditions. In
essence, from a theoretical assessment, Unified Theory of Acceptance and Use of
Technology offer an enhanced interpretation of how the contributing factors of behavior and
intention advance over a period of time (Venkatesh et al., 2003).

Social Influence
Social influence is defined as the extent to which members of a social group influence one
another’s behavior in adoption. Social influence has been recognized in prior research
regarding the adoption of innovation on champions, who are the change agents for adopting a
new innovation. Social influence can be a factor in the individual’s adoption of an innovation,
as long as the individual believes adopting would be beneficial and, hence, the individual may
imitate. Conversely, an individual may well reject the adoption if the individual perceives the
adoption would negatively affect his or her affiliation with others. Individuals may choose to
adopt an innovation due to their perception of peer pressure and not necessarily due to the
usefulness of the innovation. Peer pressure, or the lack thereof, to adopt HR Analytics may be
stemming from other HR professionals or HR associations at both the national or local levels
as well as globally, through HR social media networks. On the national level, it would be the
Society for Human Resource Management (SHRM), which is the leading voice of HR
professionals. These HR professional associations may function as the medium for the
“diffusion and translation of knowledge” needed for the use of HR Analytics. This can be
seen in either Theory of Reasoned Action because of the attitude toward the behavior or
Technology Acceptance Model because of behavioral intentions. (Talukder, 2012)

McDonald and Alpert found that the rate of individual adoption of products that were new
was more rapidly due to “word-of-mouth” by consumers. This would likely hold true for the
adoption of analytics by HR professionals if SHRM would suggest that there would be a
profound effect by utilizing analytics in many of the HR areas, such as retention, hiring, and
overall performance.

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Other studies done by researchers have found that there is a relationship between social
influence and the adoption of a product or innovation. Similarly, colleagues and co-workers
can have an impact and influence the behavior, “motivation, and encouragement” of the
adoption of an innovation. (Talukder, 2012)

Social Environment includes below four factors.

Tool availability
Tool availability is defined as having the appropriate updated systems and software, as well
as having the skill sets necessary to understand what data is needed and having the ability to
analyze and interpret the data. Individuals now have access to faster computers capable of
holding more information and data than ever before, and they also have seen an improvement
in connectivity and networks. This improved technology along with new HRIS has changed
the way capital management is evaluated in organizations. However, systems and software
are not the only tools necessary in the use of analytics. Individuals with the necessary skill
sets are an important factor, as they know what data is needed, how to analyze the data, and
how to interpret the data for reporting purposes and decision making. (Carlson & Kavanagh,
2011)

Studies have found that a major reason for poor performance is the lack of or inadequate
resources. HR systems being utilized today definitely were not developed with computers and
infrastructures now available.

Data Availability
Data availability is defined as the accumulated information residing within the HR
department and the organization as a whole. Reporting and benchmarking are the two HR
activities most often used where metrics and workforce analytics are concerned in terms of
administrative process efficiency (Carlson & Kavanagh, 2011). Showing HR’s worth by
reporting metrics, such as time to fill available positions, the costs per hire, and other
necessary paperwork submitted on time, are examples of the administrative processes. As
mentioned earlier, gathering data from different department managers with different
platforms that are not integrated becomes difficult. Attempting to purchase or share data from
a third-party vendor may not be economically feasible either. Gale indicated that many
organizations store their data in so many systems, thus making it difficult for HR
professionals to accurately and efficiently understand similarities or differences.
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Although there is an enormous amount of data being collected, there is still a need to know
where the data is coming from to ensure accuracy and limit ethical issues. Studies have
shown that fewer than 50% of organizations still use spreadsheets and other manual means of
obtaining and examining data. (Gale, 2014)

It is argued that many HR professionals lack the ability to understand statistical terminology.
Hence, knowing what to do with the data collected would be difficult.

Fear Appeals
Fear appeals involve “communicating in a persuasive manner to motivate a behavioral
change and having the individual perceive a threat and tapping into the individual’s emotion
of fear” (Johnston, 2010). For the purposes of this study, fear appeals are associated with the
HR professional’s adoption of analytics. Data analysis requires skills in understanding
statistical measures as well as problem solving; however, a great majority of HR
professionals have not yet acquired these skills, leaving organizations the option of finding
individuals with such skills (Bersin, 2013). Hence, HR professionals may fear the loss of their
position to a more qualified individual with a statistical background. According to Johnston,
“fear appeals can originate from social influences such as organizational leaders,
technological leaders and trusted colleagues. These fear appeals may be verbalized through
formal or informal conversation”. As noted by Johnston the definition or the understanding of
fear appeals will come from either the message itself or the response to a question or
comment. Fear appeals are a communication tool used to change an individual’s behavior
where an outcome, whether positive or negative, comes from a perceived threat or arousal of
fear. (Johnston, 2010)

For approximately a decade, Bersin has been researching HR professionals and what they
measure. HR leaders have expressed that measuring and predicting talent performance is
extremely important. Based on the aforementioned findings, it is reasonable that
organizational leaders would be diligent in how they frame their messages to persuade HR
professionals to adopt analytics for better decision making and competitive advantage for the
organization. Bersin points out in his article that organizations will have to find individuals
who have the skill sets and competencies to analyze HR data. The way in which the message
is conveyed and what threats (direct or indirect), known as fear appeals, are perceived may
have a positive or negative effect on the HR professional’s adoption. (Bersin, 2013)

21
Rogers stated, “Recent reviews of the literature on fear appeals and persuasion agree that the
empirical data are inconsistent and difficult to interpret”. It is important to note that each
individual’s fear and arousal of fear is different and dependent on the environment or
relational situation. (Rogers, 2003)

Internal Personal Behavior Includes following points.

Effort expectancy
Effort expectancy is the “degree of ease associated with the use of the system” (Venkatesh et
al., 2012). Effort expectancy is one of four key constructs that are related to behavioral
factors that influence whether one uses a new technology. For the purposes of this study, ease
of use will be interchangeable with the term effort expectancy. According to Venkatesh et al.,
“from the perspective of effort expectancy, in organizational settings, employees assess time
and effort in forming views about the overall effort associated with the acceptance and use of
technologies”. The study’s investigation was utilizing Unified Theory for Acceptance and
Use of Technology to a consumer context in lieu of an organizational context. Similarly, this
investigation discusses the different software platforms currently residing in some HR
departments and whether or not there is acceptance of the newer, more data-driven software.
Prior research has suggested effort expectancy is more noticeable for women than for men
(Venkatesh et al., 2012).

Performance Expectancy
According to Venkatesh et al., performance expectancy is “the degree to which an individual
believes that using the system will help him or her to attain gains in job performance”. For
the purpose of this study, performance expectancy will be used interchangeably with the term
perceived usefulness. Performance expectancy has proven to be a “strong predictor of
behavioral intention”. Prior studies have found that performance expectancy has a significant
impact on one’s intention to use technology and behaviors associated with the use (Venkatesh
et al., 2012).

For companies to be successful in today’s global era, the acceptance of innovations in general
must be accepted to gain a competitive advantage (Bersin, 2013). Studies have shown that
CEOs, locally and globally, believe HR is one of the most important components of gaining
22
and maintaining competitive advantage, through the use of analytics. Although CEOs have a
desire to incorporate HR Analytics into their organizations, there must be acceptance at the
individual level, specifically HR professionals for the purposes of this study, for the intended
benefit to be realized. Adopting innovations can be a multifaceted process, as it involves the
actions of individuals whose behaviors can be influenced by others either in adopting or
rejecting the innovation. An organization’s competitive advantage can be significantly
affected by the individual’s willingness to accept and use the innovation. (Frambach &
Schillewaert, 2002)
As defined by Rogers, the innovation-decision process is the process through which an
individual passes from first knowledge of an innovation to forming an attitude toward the
innovation, to a decision to adopt or reject, to implementation of the new idea, and to
confirmation of this decision. (Rogers, 2003)

Consequently, the innovation-decision process will lead to either adoption or rejection of the
innovation (Rogers, 2003). While there has been much research on the innovation process in
the area of adopting the innovation, there is limited research as to the individual’s rejection of
the innovation. More often than not, the focus on adoption research is on the behavior of the
adopter. This study identifies the behaviors that form barriers to adoption at the individual
level.

Acceptance of an innovation has been included at the maximum level under the theoretical
analysis of Diffusion of Innovation theory, and while it examines the impact of IT acceptance
over time, it does not provide detailed information on user acceptance. There are, however,
continual distinct and unifying ideas in several models that explain acceptance of innovation
at the individual level based on beliefs and effects toward a particular innovation and the
individual’s perceptions (Frambach & Schillewaert, 2002). As noted by Frambach &
Schillewaert, Theory of Reasoned Action, developed by Fishbein & Ajzen in 1975, has
become a useful tool in the explanation of the individual’s behavior towards innovation
acceptance. Similarly, much of the technology literature has a long history towards
innovation and the inability to clearly explain, the individual’s or user’s acceptance, which
obstructs performance (Davis, 1989). Thus, adoption research results have been more
concerned with the individual’s perception rather than the individual’s actual behaviors.
(Frambach & Schillewaert, 2002)

23
Self-Efficacy
Bandura’s theory of self-efficacy is based on an individual’s belief of his or her capability to
succeed and attain a given level of performance. Thus, HR professionals’ acceptance and use
of HR Analytics would be dependent upon their perception of their capabilities. According to
Bandura, there are four sources of information of which individuals’ expectancy is an
important aspect of their efficacy. These sources are identified as performance
accomplishments, vicarious experience, verbal persuasion, and physiological states.
Performance accomplishments will either increase efficacy as a result of successes or
decrease efficacy with continued failures; vicarious experience is related to modeling and the
individuals’ belief they can also be successful, as are their peers, in accomplishing tasks;
verbal persuasion is most commonly used, as individuals will suggest ways of accomplishing
or accepting their ability to perform; and physiological states are based on emotion and fear
of success (Bandura, 1982). Hence, self-efficacy has a potential impact on whether HR
professionals will embrace analytics and to what extent.

Davis notes the importance of perceived ease of use is supported by Bandura’s extensive
research on self-efficacy. An individual, whose judgment is based on how well a task can be
performed, can perceive the task as easy to use. Researchers should be aware that both ease
of use and perceived usefulness are not necessarily objective measures and should be seen as
subjective, since this is the perception of the user. (Davis, 1989)

As discussed by Bandura in further research, individuals may have reservations as to whether

or not they will be successful in whatever tasks they may be attempting. Similarly, HR
professionals may not adopt or use analytics because their belief and expectations of their
work and results are that they may not have an impact or may be viewed negatively by others
within their environment or social networks. (Bandura, 1982)

Prior research also has shown it can be hypothesized that attitudes toward computers in
general will affect the perceived usefulness and the perceived ease of use of a computer
system, which, in turn, can “affect the behavioral intention of using the system” (Chau,
2001). This would be similar to using analytical tools. Computer self-efficacy is defined as “a
judgment of one’s capability to use a computer. It is not concerned with what one has done in
the past, but rather with judgments of what could be done in the future” (Chau, 2001). The
question is whether or
24
not individuals perceive they lack statistical knowledge and/or have the belief that analyzing
data could be difficult, therefore creating a barrier to the adoption of HR Analytics.

Quantitative Self-Efficacy

Prior research done by Bandura, found that those who had a higher level of self-efficacy had
a tendency to participate and work better on activities where they gained knowledge and
comprehension, which allows the learning process to be greater Ozgen argued that those who
“believed that connections between mathematics and the real world increased their success in
mathematics” and at the same time “made life easier and had benefits at work”. Conversely,
not having the ability to make the connection between mathematics and their everyday life
would cause lack of successes at work. It was concluded that this lack of making the
connection had come from either insufficient or lack of proper training. (Ozgen, 2013)

25
 CHAPTER – III
Research Methodology

Research Framework

The focus of this investigation is individual-level adoption of Human Resource Analytics

(HRA) by HR professionals. The theoretical foundation framing this study is individual
adoption theory. The purpose of this study is to gain insight as to the reasons why more HR
professionals are not using HR Analytics to improve organizational performance in order to
gain and maintain a competitive advantage. The methodology used answers the research
questions regarding the factors affecting the adoption of HR Analytics among HR
professionals.

1. Environmental and personal behavior can affect the adoption of HR Analytics among HR
professionals?

2. What is the prediction HR professional’s ability and desire to adopt and deliver HR
analytics by Social and environmental factors.

This research fills the gap by applying the individual-level adoption of technological
innovation theory literature to investigate HR professionals’ adoption and use of analytics in
the field of Human Resource Management (HRM). This research extends the literature on the
factors affecting the adoption of innovation at the individual level, specifically of analytics
among HR professionals.

26
Hypotheses Development

The factors affecting the adoption of HR Analytics has been studied by developing the
following Four hypotheses:-

H1 – There is no correlation between Social Environment and adoption of HR Analytics.

H2 – There will be no significant prediction of HR Analytic from social environment.
H3 – There is no correlation between Personal behavior and adoption of HR Analytics.
H4 – There will be no significant prediction of HR Analytic from Personal behavior

27
 Research Methodology

- Research Design

The questionnaire focused on 3 dimensions – Employee Commitment and Job Satisfaction.

It is a 12 question questionnaire, on a Likert Scale of 5 points. The questionnaire is attached in appendix

for reference.

Data Collection:

Instrument used for data collection was primary research through survey on Google forms, the data was
analyzed using MS Excel. The sampling method was convenience sampling. The Survey was floated to a
selected sect of employees/interns in diverse organizations

Sample Constitution
The sample constitution for the study involved specifically of HR professionals. For the
purposes of this study, HR professionals are defined as individuals currently working in the
field of HR, regardless of their function, industry, length of time in HR, or job title within the
HR department.

Sample Size
The sample size of the primary study was 81 individual HR professionals of varied
demographics. Below is the table for respondents’ demographics.

Criterion % Responses

Male 64.2
Gender
Female 35.8

Less than 30 years 66.7

Age
3 years and above 43.3

28
 Table 1: Respondents’ Demographics

Method of Data Collection

Research was undertaken through the following sources:

Collected from various HR Professionals through an online questionnaire administered on

the online platform Google form.

Sampling Method
29
Convenient Sampling
Convenience sampling is used in exploratory research where the researcher is interested in
getting an inexpensive approximation of the truth. As the name implies, the sample is
selected because they are convenient. This non-probability method is often used during
preliminary research efforts to get a gross estimate of the results, without incurring the cost or
time required to select a random sample.

30
 Statistical Techniquess

The statistical techniques used are as follows:

 Correlation Analysis

Correlation analysis is a statistical method used to evaluate the strength of relationship between two
quantitative variables. A high correlation means that two or more variables have a strong relationship
with each other, while a weak correlation means that the variables are hardly related.

 Regression Analysis

Regression analysis is a powerful statistical method that allows you to examine the relationship between
two or more variables of interest. While there are many types of regression analysis, at their core they
all examine the influence of one or more independent variables on a dependent variable.

31
 CHAPTER – IV
Analysis and Interpretation

Analysis

Chronbach’s Alpha – Reliability and Validity Test

 Purpose – To test the internal consistency of the scale
To check whether the bunch of questions asked are consistent and aimed at getting the required
results as relevant to the hypothesis. It tests the correlation amongst different items within a test.

 Formula -

 Calculation for Chronbach’s Alpha

Number of Responses – 81

All questions PB Questions IA Questions

Sum of Variances of 7.10166 2.988836 4.11334

individual terms

Total Variance 35.5929 7.907941 13.3937

Chronbach’s Alpha 0.93256 0.829491 0.92385

32
  Result
Chronbach’s Alpha was found to be highly reliable for all the questions (0.93)
Chronbach’s Alpha was found to be highly reliable for PB questions (0.82)
Chronbach’s Alpha was found to be highly reliable for IA questions (0.92)

Correlation Analysis

 Method Used – Pearson Correlation

 Purpose – To find if there is movement or change in one variable with respect to another.
 Correlation Values Interpretation

 Null Hypothesis
H01: There is no correlation between Personal behavior and individual adoption of HR Analytics.
H0A: There is positive correlation between Personal behavior n and individual adoption of HR
Analytics.
Correlation Table

SUM(PB
SUM (IA) )
SUM
(IA) 1
SUM(PB 0.8400690
) 5 1

 Result
33
 Reject Null Hypothesis H01 (P<0.05) and keep the alternate hypothesis.

 Interpretation
Personal behavior and Individual adoption of HR analytics are highly positively correlated. (r =
0.84006905)

Regression Analysis

 Method Used – Simple Linear Regression

 Purpose – To find the relative change in Individual adoption with respect to Personal behavior.
 Level of Confidence – 95%

 Null Hypothesis

H02: There will be no significant prediction of Individual adoption of HR analytics with respect to
Personal behavior.
H02A: There will be a significant prediction of Individual adoption of HR analytics with respect to
Personal behavior.

Predictor R Square F Value Significant F Coeffecient T Stat P Value

Predicted

Individual Personal 0.7 189.4481687 0.00 0.645 13.7 1.1003E-22

adoption behaviour

 Result
34
 H02 will be rejected. (P<0.05) and alternative hypothesis will be adopted.
 Interpretation
Individual level adoption can be predicted from Personal behavior using the following
equation:
Individual adoption = 0.645(Personal behavior) + 19

Analysis

Chronbach’s Alpha – Reliability and Validity Test

 Purpose – To test the internal consistency of the scale
To check whether the bunch of questions asked are consistent and aimed at getting the required
results as relevant to the hypothesis. It tests the correlation amongst different items within a test.

 Formula -

 Calculation for Chronbach’s Alpha

Number of Responses – 81

All questions SE Questions IA Questions

Sum of Variances of 7.056546 2.943149 4.11337

individual terms

35
 Total Variance 35.25133 6.788599 13.3937

Chronbach’s Alpha 0.933126 0.849686 0.92385

 Result
Chronbach’s Alpha was found to be highly reliable for all the questions (0.93)
Chronbach’s Alpha was found to be highly reliable for SE questions (0.84)
Chronbach’s Alpha was found to be highly reliable for IA questions (0.92)

Correlation Analysis

 Method Used – Pearson Correlation

 Purpose – To find if there is movement or change in one variable with respect to another.
 Correlation Values Interpretation

 Null Hypothesis
H01: There is no correlation between Social Environment and individual adoption of HR Analytics.
H0A: There is positive correlation between Social Environment and individual adoption of HR
Analytics

36
 Correlation Table

SUM(PB
SUM (IA) )
SUM
(IA) 1
SUM(PB 0.79016084
) 8 1

 Result
Reject Null Hypothesis H01 (P<0.05) and keep the alternate hypothesis.

 Interpretation
Social Environment and Individual adoption of HR analytics are highly positively correlated. (r =
0.790160848)

Regression Analysis

 Method Used – Simple Linear Regression

 Purpose – To find the relative change in Individual adoption of HR analytics with respect to
Social environment.
 Level of Confidence – 95%

 Null Hypothesis

H02: There will be no significant prediction of Individual adoption of HR analytics with respect to
Social environment.
H02A: There will be a significant prediction of Individual adoption of HR analytics with respect to
Social environment.

37
 Predictor R Square F Value Significant F Coeffecient T Stat P Value
Predicted

Individual Social 0.6 131.3045 0.00 0.562543 11.4 1.8E-18

adoption environment

 Result
H02 will be rejected. (P<0.05) and alternative hypothesis will be adopted.
 Interpretation
Individual level adoption can be predicted from social enviornment using the following
equation:
Individual adoption = 0.5625(Social environment) + 23

38
 CHAPTER – V
Conclusion

Today, there is a significant push for human resource (HR) professionals to embrace the use of
analytics and align perspectives with the business and financial side of the organization or to be
left behind (Fitz-enz, 2013). HR professionals must begin to make use of the data being collected
within the organization and use it to analyze and predict outcomes to be more successful. Some
executives believe HR professionals analyze only what has happened, while lacking a
perspective and a bottom-line mindset (Stuart, 2005). Using data analytics and its predictive
capabilities will allow the HR professional to become a more strategic partner by aligning HR
practices with that of the future direction of the organization.

HR professionals can use HR Analytics in developing measurements from a quantitative

standpoint, which will give executives a different view of the HR professional’s contribution to
the economic outcomes the organization strives to attain (Cascio & Boudreau, 2011). Data which
tracks workplace injuries, the use of insurance, attendance, turnover intentions, and other HR
activities usually viewed in terms of the present or past, also can be analyzed and used to predict
and manage future costs. HR Analytics and measurement strategies can work to address quantity,
quality, and costs incurred when there is change in the workforce, whether due to layoffs,
promotions, or retirements (Cascio & Boudreau, 2011). The use of HR Analytics provides
measurable outcomes that can be used to manage talent, which, in turn, potentially increases
productivity through targeting the training and development that will be needed (Cascio &
Boudreau, 2011). For companies to be successful in today’s global environment, the pursuit of
innovation must be encouraged to gain a competitive advantage in the marketplace. HR
professionals understand that hiring and retaining the right talent, and the mix of talent, is an
integral part of a company’s success. Companies such as Best Buy, Sysco, SAP America, Inc.,
Marriott Vacation Club, and others use HR Analytics to track engagement, incentives,
leadership, absenteeism, and other trends (Bassi, 2013). While the basis of this study was to
investigate the individual-level adoption of HR Analytics among HR professionals, it is
important to note the effects of the organizational context in terms of providing the support and

39
resources necessary to

40
use HR Analytics. Adoption of innovation at the organizational level was used only as the arena
in which the individual operates and to determine if the organization’s non-adoption of HR
Analytics influences, or provides a barrier to the HR professional’s decision to use HR Analytics.

Individual-level adoption

“In short, many organizations are ‘hitting a wall’ in HR measurement” (Bersin, 2013). The
purpose of this study was to gain insight as to the reasons why most HR professionals are hitting
a wall by not adopting HR Analytics to improve organizational performance. As a result of this
study, there is now empirical evidence to determine how to remove or scale this wall and move
forward. This research addresses the gap in individual-level adoption of technological innovation
theory and the HR professional’s adoption of the use of HR Analytics in the field of human
resource management (HRM).

Bersin (2013) discussed the datafication of learning in an article in Chief Learning Officer
Magazine and suggested HR professionals are often not well versed in analytics. While there are
some HR professionals who have become more accustomed to the use of metrics, the profession
lags behind. Practitioner research outlines the shortcomings of HR professionals when it comes
to the use of analytics and metrics. This research extends the literature on the adoption of
innovation at the individual level of HR Analytics.

Having the appropriate HR Analytics tools available for adoption has a significant impact on the
HR professionals’ decision to use HR Analytics.

Individuals with the necessary skill sets are an important factor, as they will need to know what
data is needed, how to analyze the data, and how to interpret the data for reporting purposes and
decision making. These could be reasons why the impact of adopting and using HR Analytics
was not as strong.

Currently, there are many HR technology vendors attempting to seduce organizations into buying
portions or their entire packages of software. Unfortunately, there are many small and medium-

41
sized organizations that do not have the financial means to make these tools available, which
would also include training the HR professionals in the use of the software. Similarly, some of
these software packages may not be compatible with the technological systems currently used by
the organizations, and upgrading their technology could be a financial burden for the
organization as well. It should be noted that some practitioners consider the use of Human
Resource Information Systems (HRIS) for ad hoc reporting of past data, using analytics.

Fear appeals are statements, describing an outcome, whether positive or negative in nature. For
instance, in order to change the behavior of a cigarette smoker, the communication or fear appeal
would be framed as “smoking causes cancer.” Fear appeals studies have found a significant
positive effect on the modification of beliefs, attitudes, and behavior, as respondents worry about
the effects smoking may have on their health. Based on findings of this study, the way in which
the message is conveyed and what threats are made—direct or indirect—seem to have a negative
effect on the HR professional’s adoption decision. It is difficult to tell whether or not there is an
actual threat viewed by the HR professionals, and rather than motivating them it could be de-
motivating them. This could be centred on how the message is framed to persuade HR
professionals in using HR Analytics. Therefore, it is important to note that each individual’s fear
and arousal of fear is different and dependent on the environment or relational situation.

A finding of this study is that HR professionals’ perception of how easy it is to use HR Analytics
positively impacts their decision to adopt its use. When HR professionals have the expectation
that HR Analytics is easy to use, there is a likelihood they will use or attempt to use HR
Analytics.

Results show that HR professionals who perceive using HR Analytics will enhance their job
performance, which may lead to promotions, are more likely to adopt HR Analytics. The
expected improvement in performance has proven to be a strong predictor of behavioral
intention. This finding concurs with prior studies that have found that when individuals believe
using the technology, will help to achieve improvements in job performance, it has a significant
impact on one’s intention to use the technology and the behaviors associated with the use.
(Venkatesh et al., 2003)

42
Based on a finding of this study, if HR professionals believe they are not capable of performing
at their best using HR Analytics, they will not be agreeable to its use. This can be caused by their
lack of confidence in their ability to use analytics.
An individual’s comfort level with his or her quantitative skills positively impacted his or her
decision to use HR Analytics. The attitudinal relationship stems from the individual’s connection
of math itself and how math is used in the real world. The individual’s comfort level is similar to
the belief that one has the capabilities of performing an action, in this case, HR Analytics

A finding of this study indicates the influence of a person’s social membership has a positive
influence on an individual’s adoption of HR Analytics.

The influence of adopting HR Analytics could also come from colleges and universities by
promoting and communicating the importance of using HR Analytics in their courses.
Conversely, colleges and universities that do not offer or provide the necessary training and/or
skill sets, such as courses on the use of HR analytics within their HR programs, are missing an
opportunity to influence graduating students’ choice in using HR Analytics. Colleges and
universities that are not currently offering these metrics in their HR programs should explore
adding such courses for their students’ future success in HR. HR analytics champions should
encourage other HR professionals and HR associations, through local, national, global and social
media networks to use HR Analytics.

The availability of data has a very strong impact on HR professionals’ decision to use HR
Analytics in the organization. However, a finding of this research shows that even when data is
available, HR professionals are less likely to use HR Analytics. This is in line with the fact that
studies show there is an enormous amount of data being collected by organizations but may not
be available to HR. Historically, HR professionals always have had information on each
employee and have been able to easily, with a click of a mouse, have a report filled with data that
can only tell stories of the past or present. Organizations such as Hewlett-Packard, Wikipedia,
LinkedIn, and others are using HR Analytics to predict who will be leaving the organization,
what skill sets potential employees may have, and how employees will perform based on past
performance and personality traits, just to name a few. The concern here is that if HR
professionals are not using the current data to predict
43
the future, in terms of talent management, this could have a negative impact on the financial
picture of the organization. Retaining top talent is as important as, hiring and training new talent
as it is quite costly, and does not take into account the loss of productivity.

Role of the organization

As noted earlier, the basis of this study was to investigate an individual’s adoption of HR
Analytics. Additionally, it is important to note the effects of the organization’s support and
resources, such as tools and training provided to employees. Without support and resources from
the organization, the individual would be less likely to use HR Analytics. However, it is
important to note that HR Analytics is a more recent type of measurement for HR professionals,
and it would be beneficial for those who do not have the necessary skills to use HR Analytics to
work with early adopters of HR Analytics, in an effort to gain the confidence to use the new
innovation. Organizations can remove the barriers that might exist by providing their HR staff
with opportunities to network with other HR professionals and be exposed to HR Analytics
champions.

Implications for Practice

This study indicates that performance expectancy, effort expectancy, fear appeals and social
influence, are the most important factors in the HR professionals’ decision to use HR Analytics.
This comes as no surprise, since HR professionals, for the most part, spend most of their time in
relationship building and utilizing their soft skills. Recently, the term human resource business
partner (HRBP) has been discussed in recruiting HR professionals, but only in the context of a
44
title. A true business partner must have an understanding of the actual business as a whole.

45
Therefore, HR professionals should take note of the latest trends in analytics and begin to
consider using HR Analytics, if they seek to become a true strategic partner of the organization
and earn a seat at the executive table.

HR professionals who are currently using HR Analytics should mentor their counterparts who
are not using analytics in HR to help them scale the wall. Companies can and should provide
time and resources to encourage and facilitate such mentoring. Consequently, this will give
support to those who do not have the comfort level for using analytics or quantitative methods.

HR students enrolled in colleges and universities should consider taking courses geared towards
analytics, even if it is an elective. Similarly, those HR professionals not enrolled in an academic
institution should, at a minimum, attend continuing education, training workshops or webinars
on the use of HR Analytics.

More senior HR professionals also should begin to encourage and collaborate with their junior
counterparts, who may have some quantitative and software skills knowledge and together create
a professional learning community within their organizations and networks. Actively seeking
opportunities to learn or improving how to use HR Analytics would be beneficial to the HR
profession. HR professionals must avoid lagging behind in adopting HR metrics. Otherwise, they
risk becoming irrelevant in the corporate decision making process.

Human capital, which is recognized as one of the most important assets of an organization, has
also been identified as one of the major costs for an organization. Currently, many HR
professionals struggle with ensuring there are no biases during the hiring process in order to be
compliant with legalities. However, there are some unconscious or hidden biases that exist, such
as gender, age, in-group, “looks like me”, the infamous halo or horn effect, and many others.
These biases are frequently uncontrollable because HR professionals and managers use intuition
to hire. The use of HR Analytics will reduce these biases, as the use of objective measures will
be used instead of mere intuition. The decisions become more objective rather than subjective.
This also will reduce costs for the organization in hiring, performance management, and
promotions, and it will eliminate any unnecessary legal issues regarding the aforementioned.

46
Many organizations currently have the ability to track their employees’ use of the Internet and
block inappropriate websites. The data collected from this usage would be beneficial for HR
professionals to predict the behaviors of the employees by using analytics. The data can provide
insight as to how much time in productivity is lost due to cyber slacking; it could tell if
employees are seeking other employment and be better prepared for the turnover or avoid the
turnover of high performers altogether. This is one example of how data from functions outside
of HR can be used for predictive analytics. However, the fact still remains that the HR
professionals will need to understand what data needs to be collected, what data is already being
collected and how to use the data to make better assessments for the future. HR professionals
need to climb over the wall they keep hitting by exploring, embracing, and adopting the use HR
Analytics.

Executive-level HR professionals should become knowledgeable in the area of HR Analytics. A

vested interest in the decision-making efforts in determining the appropriate software and tools
vendors have to offer is paramount to the success of transitioning to this type of measurement
tool and the acceptance of this innovation by the rest of the HR staff. The decision-making
process should include costs, ease of use for the HR staff, training on the software, and its
compatibility with their current technological systems.

Limitations

This study focused solely on the individual-level adoption of technological innovations and was
limited to HR professionals. This study did not intend to focus on the organizational-level
adoption of innovation. Adoption of innovation at the organizational level was used only as the
context in which the individual functions.

47
Another limitation of the study is the self-reporting method employed on the ease of use and
perceived usefulness in the adoption of HR Analytics. It should be noted that participants on
surveys tend to respond in a manner so that they come across in a more positive light. Hence,
there is a tendency to either over or under report. This is especially true with the items
concerning general self-efficacy and quantitative self-efficacy, as they tend to be behavioral-type
questions and may not be generalizable. Another limitation with self-reports is whether or not the
participants have a good understanding of the questions asked, especially the study’s definition
of HR Analytics. Therefore, the results of this study may not be generalizable.

Social media was used to target and recruit the appropriate subjects for the study. Google form
was the tool chosen to administer the survey. These are newer methods of reaching subjects and
collecting data. After attempting several more traditional methods such as obtaining lists from
targeted professional organizations, this was found to be the most feasible method to reach the
desired population since it appears to be the method preferred by the respondents.

Recommendation for Future Research

Future studies can replicate this research on a larger scale. A more diverse sample, using a larger
pool of respondents outside of the India, should be sought. This study can also be replicated at
the organizational level, to determine the most effective way for the organization to support the
adoption of HR Analytics and HR professionals.

Further research as to whether or not HR professionals with the wrong skill for using HR
Analytics are being graduated and hired should be investigated. Another recommendation would
be to partner with some big research company at the national level in order to recruit their
members as respondents. This would be a much broader and diverse sample. Partnering with
with some big research company, would also provide a larger sample of HR professionals for a
future study.

48
Further research on non-adopters is recommended. Non-adoption is not the opposite of adoption.
Although there is extensive research on the adoption of innovation, there is a lack of research on
the reasons for non-adoption.

Summary

This research illustrates how Personal behavior and Social environment impact the HR
professional’s adoption of HR Analytics and presents findings indicating which factors appear to
be more prevalent. Empirical and non-empirical literature on data analytics and innovation
adoption literature at the individual level, specifically human resource analytics among HR
professionals is extended. The broader impact of this research aims to change the views of HR
professionals who are still involved with past practices of 20th century management and
relationship building, rather than the more recent focus of being a strategic business partner
(Talukder, 2012).

This study indicates that the factors impacting the adoption of HR Analytics are in the hands of
both the HR professional and the leadership of the organization. HR professionals need to
understand that the employers are definitely looking to use analytics to gain and maintain a
competitive advantage. HR professionals look to recruit candidates for various departments in
the organization who are tech savvy and understand how to analyze data. HR professionals need
to take the same approach when recruiting and hiring HR professionals within their own
departments and should start adopting HR Analytics themselves to be at the forefront of
implementing the new era of data analytics in HR.

Similarly, leaders of organizations who are looking to gain a competitive advantage in the
decision-making processes related to HR and the organization must ensure that the necessary
tools, data, support, and resources are made available to HR professionals to enhance decision-
making.

49
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 Annexure – Online Questionnaire

FACTORS AFFECTING ADOPTION OF

HUMAN RESOURCE ANALYTICS
The purpose of this questionnaire is to obtain a general overview of the factors affecting adoption of
Human resource analytics. Please read each statement carefully and answer by choosing one of the
possible five responses. Please be honest as possible. This is an anonymous questionnaire, and all
responses will be treated as confidential.
* Required
Name *

Your answer
Age *
20-25
26-30
31-40
Above 40
Gender *
Male
Female
Organization Name *

Your answer
When I am confronted with a problem, I can usually find several solutions
Strongly Disagree
1
2
3
4
5
Strongly Agree
I find using mathematical and/or statistical measurements interesting.
Strongly Disagree
1
2
3
4
5
Strongly Agree
Learning to use HR Analytics is easy for me.
52
 Strongly Disagree
1
2
3
4
5
Strongly Agree
I would find the use of HR Analytics useful in my job
Strongly Disagree
1
2
3
4
5
Strongly Agree
The senior management of this business has been helpful in the use of HR Analytics.
Strongly Disagree
1
2
3
4
5
Strongly Agree
I have a full array of HR Analytics tools available at work if I choose to use them.
Strongly Disagree
1
2
3
4
5
Strongly Agree
My organization's database has all the data I need to use HR Analytics software.
Strongly Disagree
1
2
3
4
5
Strongly Agree
If I were mandated to use HR Analytics, it would have a negative effect on my job satisfaction.
Strongly Disagree
1
2
53
3
4
5
Strongly Agree
I am beginning to explore using HR Analytics.
Strongly Disagree
1
2
3
4
5
Strongly Agree
I am interested in using HR Analytics.
Strongly Disagree
1
2
3
4
5
Strongly Agree
I am recommending my organization invest in HR Analytics.
Strongly Disagree
1
2
3
4
5
Strongly Agree
I use HR Analytics for some specific tasks.
Strongly Disagree
1
2
3
4
5
Strongly Agree

54