The role of human resource analytics in enhancing organisational performance and decision-making: A systematic literature review

Abstract

Orientation: The importance of human resource analytics (HRA) has been growing as organisations seek to enhance evidence-based decision-making and performance through data-driven human resource (HR) practices.
Research purpose: This study systematically examines and synthesises extant literature on HRA to illuminate its role in organisational decision-making and performance outcomes.
Motivation for the study: Despite growing investment in HRA, organisations report persistent disparities in value realisation. A synthesised framework identifying the processes, facilitators, and barriers defining successful HRA adoption is therefore needed.
Research approach/design and method: A systematic literature review of 68 peer-reviewed articles was conducted across varied industries and international settings, following the Preferred Reporting Items for Systematic reviews and Meta-Analyses framework.
Main findings: Analytics capability, data quality, HR-business partnership and decision-making quality are the four primary drivers of HRA effectiveness. These capabilities translate into improved performance when mediated by organisational culture, ethical governance and digital maturity.
Practical/managerial implications: Managers should invest in data literacy and analytical skills before deploying predictive models and ensure that foundational infrastructure and governance frameworks are in place to maximise HRA value.
Contribution/value-add: The review presents an integrative, multi-level framework that explains HRA’s role in organisational performance and identifies seven priority directions for future research.