Leveraging HR analytics for data-driven business decisions: a strategic approach for SMMEs

In the rapidly evolving landscape of contemporary business, Small, Medium and Micro enterprises (SMMEs) must adopt intelligent and strategic approaches to maintain their competitive edge. A significant method for achieving this is using Human Resource (HR) analytics, which enables organisations to make informed decisions based on data insights. By examining workforce patterns, companies can enhance recruitment processes, retain high-performing employees, and increase productivity. Nevertheless, numerous SMMEs face challenges in fully integrating HR analytics due to limited resources, insufficient expertise, and resistance to change, which complicates effective workforce management. This paper investigates how HR analytics can empower SMMEs to make informed, data-driven choices that fortify their operations. It aligns with Sustainable Development Goal (SDG) 8, which advocates for sustainable economic growth, productive employment, and decent work for all individuals. Through a systematic review of existing literature, this study assesses the advantages, obstacles, and best practices associated with implementing HR analytics in smaller enterprises. The results indicate that HR analytics can revolutionise personnel management within SMMEs, facilitating processes from selecting suitable candidates to forecasting employee turnover and enhancing overall workplace productivity. It offers actionable recommendations for SMMEs to adopt HR analytics, including using cost-effective digital tools, fostering a data-centric organisational culture, and investing in employee development. Key Words:business strategy, data-driven decisions, human resource analytics, human capital, small, medium and micro enterprises, workforce management