Turning Data Into Valuable Insights: The Case Study In Aviation Sector Company

Since the early 2000s, there is increasing pressure on Human Resource Departments to show their impact on organizational performance. This pressure is related to the shift from industrial based economies to knowledge based economies and positioning people as potential sources of competitive advantage, and to the rise of Evidence-Based Management (EBM), which requires making decisions based on data and analysis. New technologies have enabled HR departments to start a transition from HR metrics to HR Analytics, thus transforming from the traditional administrative HR function to a more strategic HR function that can express qualitative matters and its impact on organizational performance with numbers. This case study describes the implementation of HR analytics in an aviation sector company. Quantitative data gathered from an annual staff engagement survey are analyzed using a Structural Equation Modelling technique with Smart PLS software. The results show that the analysis offers insights which are much more valuable than traditional diagnosis of the level of employee engagement. Thus, management can trace an employee’s journey within the organization and be able to predict their behavior in relationship to the time spent in the organization. Moreover, the changing needs of employees are seen form the analysis and Evidence-Based Management can be implemented.