The Use of Data Analytics in Human Resource Management

Purpose: The objective of the article is to investigate the role of data analysis and Big Data in managing human resources (HRM). The authors focus on identifying the benefits resulting from the use of data analysis in personnel management processes, understanding the threats and challenges associated with this practice, and presenting perspectives on the future of this field. Design/Methodology/Approach: Perspectives on the development of data analysis and Big Data utilization in human resource management are presented, along with potential directions for further research in this area. The authors summarize the main conclusions and recommendations derived from the study. The research problem is formulated as follows: How does the use of data analysis and Big Data affect human resource management? Our research aims to explore the role and potential of data analysis in the context of human resource management, understand how organizations employ data analysis in recruitment, selection, training, performance assessment, and talent management processes. Another objective is to identify the primary benefits that organizations can attain through the use of data analysis in personnel management, such as enhanced decision-making, improved efficiency of personnel processes, and optimized utilization of human resources. The study does not confine itself solely to potential benefits. The authors endeavour to identify the principal challenges and risks associated with employing data analysis in human resource management. The study drew upon the latest research presented in documents and reports published by international organizations, as well as literature analysis based on scientific articles from recent years and credible online sources, which facilitated the discovery of new trends in human resource management. Findings: Utilizing data analysis in human resource management yields numerous benefits (enhanced decision-making in personnel matters, optimization of recruitment and employee development processes, increased efficiency in performance evaluation, talent identification, and trend prediction, which aligns with organizational strategic goals), but it also presents challenges (personal data protection, risk of discrimination, the imperative of ensuring data security) and responsibility. Practical implications: The article focuses on identifying threats and challenges linked with employing data analysis and Big Data in human resource management. Discussed are issues about personal data protection and data security, along with an analysis of challenges connected with data interpretation and ensuring adequate technological resources, analytical competencies, and ethical awareness. Responsible application of data analysis and Big Data in human resource management, in line with best practices, can yield significant benefits for organizations, enhancing both business outcomes and employee experiences. Originality/Value: Global Big Data statistics indicate that data serves as the linchpin for transforming any company. However, numerous organizations still do not sufficiently invest in analytical solutions. The authors endeavour to provide concrete recommendations for organizations aiming to effectively utilize data analysis in personnel management while ensuring compliance with relevant legal regulations and respect for employees' rights.