European Research Studies Journal

Volume XXVII, Issue 2, 2024

pp. 203-215

The Use of Data Analytics in Human Resource Management

Submitted 18/02/24, 1st revision 16/03/24, 2nd revision 20/04/24, accepted 15/05/24

Julia Nowicka1, Yury Pauliuchuk2, Zbigniew Ciekanowski3, Beata Fałda4,

Karol Sikora5

Abstract:

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

1
War Studies University, Poland, ORCID: 0000-0002-0778-0519,
[email protected];
2
University of Siedlce, Poland, ORCID: 0000-0002-2077-5124 [email protected];
3
Faculty of Economics, John Paul II University of Applied Sciences in Biała Podlaska,
Poland, ORCID: 0000-0002-0549-894X, e-mail: [email protected];
4
Institute of Mathematics and Computer Science, State Academy of Applied Sciences in
Chełm, ORCID: 0000-0003-0338-4735, email: [email protected];
5
Warsaw Management University, Poland, ORCID: 0000-0002-2949-9656,
[email protected];
 The Use of Data Analytics in Human Resource Management

204

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.

Keywords: Data analysis, Big Data, management, human resources, organization.

JEL codes: M12, M21, M50

Paper type: Research article.

1. Introduction

In today's dynamic business environment, where technological, social, and economic

changes are becoming increasingly urgent, human resource management is
becoming a key element of organizational success strategy. In this context, greater
attention is being paid to the use of data analysis, including Big Data, as a tool
supporting personnel management processes.

Our research aims to delve into the role and potential of data analysis in the context
of human resource management. We want to understand how organizations use data
analysis in recruitment, selection, training, performance evaluation, and talent
management processes.

Furthermore, our goal is to identify the main benefits that organizations can achieve
through the use of data analysis in personnel management, such as better decision-
making, increased efficiency of personnel processes, and optimization of human
resource utilization.

However, the study is not limited to potential benefits. We also aim to identify the
main challenges and threats associated with the use of data analysis in human
resource management. In particular, we are interested in issues related to personal
data protection, the risk of discrimination, and data security challenges.
 Julia Nowicka, Yury Pauliuchuk, Zbigniew Ciekanowski, Beata Fałda, Karol Sikora

205

By exploring these issues, our goal is to provide specific recommendations for

organizations that want to effectively use data analysis in personnel management,
while ensuring compliance with applicable legal regulations and respect for
employees' rights.

Our study aims to contribute to the expansion of knowledge about the role and
significance of data analysis in the field of human resource management and to
develop best practices in this area.

2. Human Resource Management in Organizations

During the analysis of the human resource management area, there is a need for the
definition of the concept of human resources. It should be noted that people are not
resources, but they possess a resource, namely a set of characteristics and properties
embodied in them, which enable them to perform various roles in the organization
(Leleń, 2010).

The main components of human resources are: knowledge, abilities, skills, health,
attitudes and values, and motivation. It should also be remembered that individual
employees are the owners of human resources, and they decide on the extent of
engagement of this resource during work (Pocztowski 2003). Effective human
resource management can be carried out according to many concepts and in various
ways.

However, all contemporary methods of effective team management share 10

common characteristics:

• It is both an art and a science,

• It is omnipresent,
• It is a continuous process,
• It serves a service function,
• It must comply with legal regulations,
• It is interdisciplinary and rapidly changing,
• It focuses on results,
• It is people-oriented,
• It is a philosophy of interpersonal relations,
• It is an integrated concept (What is management…2024).

Human resource management involves the process of managing employees of an

organization from recruitment to their departure (both initiated by the employee and
the employer and in some cases retirement).

Among the many tasks set before employees in this area, six main functions of
human resource management can be distinguished. These functions are presented in
the diagram below.
 The Use of Data Analytics in Human Resource Management

206

Figure 1. Six main functions of the human resource management process

Source: https://www.templatka.pl/zarzadzanie-zasobami-ludzkimi.html

Human resource management in organizations mainly focuses on the relations

between the employer represented by management and the workforce (Ciekanowski,
2012). Human resource management policy aims to achieve a common goal of
people and organizations towards converging objectives.

It is a strategic approach to motivation and development issues, stimulating their

engagement and dedication so that while pursuing their ambitions and goals, they
also contribute incidentally to the achievement of organizational goals
(Ciekanowski, 2012). It is a process that requires constant attention and
commitment.

An organization needs to be aware of the value of its employees and invest in their
development. Communication plays a crucial role in building trust and employee
engagement, influencing the effectiveness of the entire organization. Additionally,
managing diversity and equality in the workplace is becoming increasingly
important as it benefits both employees and the organization itself.

Ultimately, effective human resource management is based on building relationships,

supporting personal development, and creating an atmosphere conducive to
maintaining motivation and achieving business goals.

3. Data Analysis and Big Data

We live in the era of the information society, for which data holds significant value.
Information has been valuable to humans for centuries. With the knowledge
possessed, more accurate decisions can be made, especially concerning business
 Julia Nowicka, Yury Pauliuchuk, Zbigniew Ciekanowski, Beata Fałda, Karol Sikora

207

activities. Information must be processed and analysed appropriately to serve as a

source of answers to many pressing questions. Such functions information can fulfil
through Big Data and the analysis of data in various ways (Practical Application of
Big Data… 2024; Velinov et al., 2023; Tyagi et al., 2023).

Big data, or vast amounts of data, plays an increasingly significant role in today's
world. More and more organizations realize the potential lying in collecting,
analysing, and utilizing data in management processes (The Importance of Big
Data…, 2024). It is a relatively new term, hence finding a consistent definition is
challenging (Kania et al., 2018; Norena-Chavez and Thalassinos, 2023).

Some researchers suggest that big data is a "moving definition" that changes over
time and across industrial sectors (Manyika et al., 2019). There is no established
threshold for measuring the size and type of data that can be considered large
datasets, considering their quantity is constantly growing (Sheng et al., 2017).
Below is a presentation of how much data was and still is created daily, as well as
the scale of regularly used data:

• In 2021, people created 2.5 quintillion bytes of data every day.

• By 2022, 70% of the world's GDP will be digitized.
• In 2022, 91% of Instagram users interact with brand videos.
• By 2025, 200+ zettabytes of data will be stored in the cloud worldwide.
• In 2022, users send about 650 million tweets per day.
• By the end of 2020, 44 zettabytes will constitute the entire digital universe.
• In 2022, 333.2 billion emails are sent daily (Rayaprolu, 2024).

Managing large datasets involves how organizations store and process data.
Adhering to appropriate practices can facilitate management and provide
organizations with the proper infrastructure for storing information now and in the
future, maintaining an adequate level of personal or confidential data security (What
is Big Data…, 2024). Proper management of large datasets ensures that an
organization's data is accessible, well-organized, and accurate.

This is crucial for increasing people's trust in the information they rely on when
making decisions. Focusing on data management as part of big data management
can adequately protect the enterprise, mitigating the effects and risks of breaches and
reducing regulatory issues by ensuring compliance with legal or jurisdictional data
principles—such as the European Union's General Data Protection Regulation
(GDPR) (Data Governance Best Practices…, 2024).

The concept of "big data" is gaining tremendous interest worldwide (Akter et al.,
2014). The amount of data collected and stored by organizations has never been
higher and continues to grow steadily. Enterprises without proactive data
management strategies risk both operational activities and reputation loss.
 The Use of Data Analytics in Human Resource Management

208

Figure 2. ’’V” Big Data Terms

Source: https://bluesoft.com/pl/blog/niech-zyje-big-data-analytics/

Experts define Big Data using three "V" terms, which are associated with unique
technical challenges:

➢ Volume - huge datasets pose significant technological demands in terms of

processing, monitoring, and storage.
➢ Velocity - many organizations rapidly generate new data and must react to
actions in real-time. Big Data particularly requires this type of velocity from
companies involved in technologies related to social media platforms, the
Internet of Things, and e-commerce.
➢ Variety - in Big Data, another challenge is the variety of data formats. Big
Data warehouses contain documents from text editors, email messages,
presentations, images, videos, and other formats (Big Data is Dead…,
2024).

Most organizations constantly face typical barriers and challenges such as limited
budget, concerns about data security, and integration issues (Mittal et al., 2017). The
study on these issues was included in a joint report by Informatica and Capgemini on
the keys to operationalizing Big Data projects "The Big Data Payoff: Turning Big
Data into Business Value." These data are presented in Figure 3.

The significance of Big Data in the functioning of every organization will increase in
the coming years. Progress in this field will undoubtedly support the development of
organizations, although it also brings many challenges for the future. Among the
most important ones, we can definitely include:

➢ Data security - with the growing volume of collected data, their security
becomes an increasingly important issue. It is necessary to ensure adequate
 Julia Nowicka, Yury Pauliuchuk, Zbigniew Ciekanowski, Beata Fałda, Karol Sikora

209

measures to protect personal and business data from cyber-attacks and

privacy breaches.

Figure 3. Keys to Operationalizing Big Data Projects

What are your organization’s top challenges with respect to operationalizing

Big Data and turning it into a trusted business asset? (Up to ten challenges
selected)

1%
Other 1%
1%

None: not facing any challenges with 4%

2%
respect to operationalizing Big Data 3%

Business and IT are not aligned on 19%

27%
strategy 22%

No formal data governance guidelines are 20%

26%
in place 22%

Managing third-party 19%

27%
consultants/outsourced service providers 22%

Unclear organizational roles & 26%

22%
responsibilities for data management 24%

29%
Manual processes/time constraints 22%
26%

Concerns regarding user adoption and 26%

26%
training needs 26%

26%
Compliance concerns 27%
26%

35%
Poor or insuf cient data quality 23%
30%

Corporate culture (e.g., the company is 30%

30%
not open to new ways of doing business) 30%

28%
Proliferation of data silos 34%
31%

Lacking technical expertise (e.g., no Data 30%

34%
Scientist on staff) 32%

32%
Integration challenges 45%
35%

42%
Data security concerns 36%
36%

39%
IT budget constraints
Source: https://www.capgemini.com/.
 The Use of Data Analytics in Human Resource Management

210

➢ Privacy protection - increasing societal awareness regarding the protection

of personal data privacy requires companies to adopt more transparent and
ethical practices in collecting, storing, and processing data.
➢ Managing data complexity - the increasing diversity of data types and
formats requires flexible data management tools and techniques that enable
effective storage, analysis, and extraction of valuable insights from data.

Nevertheless, over half (the majority of which are regularly involved in projects
encompassing the entire enterprise or specific departments or groups) of the
surveyed individuals indicate that Big Data has reached a level of ubiquity
throughout their organization. Below are the respondents' responses to the question
"How pervasive is Big Data in your organization today?".

Figure 4. Ubiquity of Big Data in organizations

How pervasive is Big Data within your organization today?

40%
35%
30%
25%
20%
15%
10%
5%
0%

Total US EMEA
Source: https://www.capgemini.com/

The future of Big Data entails not only challenges but also specific paths of
development. Experts in the data analysis industry predict that the proliferation of
Big Data will result in, among other things:

➢ Improved quality of real-time analytics - as the need for real-time decision-

making grows, new techniques and tools for stream processing and ad hoc
information analysis will be developed.
➢ Utilization of machine learning and AI - leveraging machine learning and
artificial intelligence techniques will automate analytical processes and
 Julia Nowicka, Yury Pauliuchuk, Zbigniew Ciekanowski, Beata Fałda, Karol Sikora

211

detect hidden patterns and dependencies in data more effectively than

manual analysis.
➢ Development of analytical tools and technologies - with technological
advancements and the evolution of new tools such as cloud computing,
NoSQL databases, and data analytics platforms, more efficient management
of Big Data and utilization of their potential will become possible.
➢ Application of Big Data in new fields - including healthcare, science,
transportation, and agriculture, which will impact process improvements and
the speed of decision-making in these areas (Big Data - what is it..., 2014).

Big Data statistics from around the world indicate that data is the key to
transforming any company. However, there are still many organizations that do not
adequately invest in analytical solutions (The Ultimate List of Statistics..., 2024).

4. Data Analysis and Big Data in HR - Threats and Challenges

The introduction of data analysis and big data into human resource management
opens up new opportunities for optimizing recruitment processes, employee
development, and performance evaluation.

Data analysis can provide organizations with valuable information about the
behaviours, preferences, and skills of employees, enabling more accurate personnel
decisions.

By using data analysis in human resource management, organizations can:

➢ more accurately define candidate profiles and identify the best recruitment
sources; data analysis also allows for predicting which skills and character
traits are most relevant to success in a given position,
➢ track employees' progress in training and identify areas where additional
support or supplementary training is required,
➢ objectively measure employee performance based on specific indicators,
allowing for fairer and more accurate assessments,
➢ identify employees with high potential and create personalized development
plans for them.

Introducing data analysis and big data into human resource management requires
appropriate IT infrastructure and analytical skills. When effectively applied, it can
bring significant benefits, improving both the efficiency of personnel processes and
the achievement of organizational strategic goals. Big data is used in many fields.

According to Harvard Business Review, 71% of surveyed CEOs consider human

capital resources the most important factor contributing to the maintenance of
enduring economic value. Big Data in human resource management can significantly
contribute to achieving organizational goals, including by:
 The Use of Data Analytics in Human Resource Management

212

➢ predicting the risk associated with turnover;

➢ analysing resources allocated to talent development;
➢ exerting pressure to return on investment in human capital;
➢ talent management and planning;
➢ meeting the demand for in-depth data;
➢ using appropriate (illustrating the level of effectiveness) indicators (Six
Reasons for HR… 2024).

On the other hand, modern data analysis tools allow for the optimization of many
processes in an organization, facilitating increased efficiency.

Data analysis will find application in sectors such as new technologies, finance,
marketing, industry, logistics, telecommunications, healthcare, and medicine,
including playing a significant role in human resource management (Data Analysis -
how…, 2024). There is no doubt that data analysis and Big Data can certainly usher
human resource management into a new digital era. However, it must be
remembered that all new technologies come with risks and challenges that must be
managed to ensure smooth digital development. The main threats associated with the
use of data analysis and Big Data are presented below:

Personal data protection: Data analysis may violate employee privacy, especially if
personal data is used without adequate protection and consent. Organizations must
comply with data protection regulations such as the General Data Protection
Regulation in the European Union to avoid legal consequences associated with
illegal use of personal data.

Discrimination and algorithmic biases: Data analysis can lead to discrimination or

algorithmic biases if algorithms based on historical data replicate unfair or biased
decision-making patterns. Organizations must monitor and assess algorithms for
fairness and equality to prevent unfair consequences for employees.

Data security: Large amounts of data stored and processed as part of Big Data
analysis may be susceptible to cyberattacks or data security breaches. Organizations
must implement appropriate security measures such as data encryption and access
management to protect the confidentiality and integrity of data.

Ensuring proper data interpretation: Data analysis can provide organizations with
vast amounts of information, but it is essential for this data to be correctly
interpreted and used for decision-making. Incorrect data interpretations can lead to
incorrect decisions, which can have negative consequences for employees and the
organization as a whole.

Therefore, risk management and awareness of legal issues related to data analysis
and Big Data are crucial for organizations wishing to utilize these tools in human
resource management. Implementing appropriate policies, procedures, and training
 Julia Nowicka, Yury Pauliuchuk, Zbigniew Ciekanowski, Beata Fałda, Karol Sikora

213

for staff can help minimize these risks and ensure the safe and responsible use of
data. Despite the above-mentioned threats, it should be noted that in most
organizations, the positive effects of using data analysis and Big Data in human
resource management prevail.

The primary challenge of Big Data is the collection (usually unstructured) of data
from various systems and their integration. Often, employee data is scattered across
different IT systems, making it difficult to obtain a comprehensive view of human
resources. Additionally, data quality must be ensured to avoid erroneous conclusions
resulting from incorrect data.

Another challenge is the development of appropriate data analysis tools and

algorithms that will enable effective utilization of collected data in human resource
management processes. Advanced technologies that enable real-time analysis of
large datasets and identification of significant patterns and dependencies are
necessary. Additionally, ensuring the security of employees' personal data and
compliance with data protection regulations, such as the General Data Protection
Regulation, is also crucial.

Improper use of personal data can expose an organization to high financial penalties
and reputational damage. Finally, it is important to understand and consider the
ethical aspects associated with the use of data analysis in human resource
management. Transparency in analytical processes and protection of employee
privacy are necessary. Responsible data usage should be based on principles of
fairness, equality, and respect for employees.

5. Conclusions

Utilizing data analysis in human resource management brings numerous benefits but
also entails challenges and responsibilities. In summary, valuable aspects include
better personnel decision-making, optimization of recruitment and employee
development processes, and increased performance evaluation efficiency. Data
analysis also enables talent identification and trend prediction, supporting strategic
organizational goals.

However, there are also certain threats and challenges, such as data protection, risk
of discrimination, and the need to ensure data security. Organizations must take
conscious and responsible actions, adhering to data protection regulations, ensuring
fairness in processes, and respecting employee privacy. It is also worth emphasizing
that the use of data analysis in human resource management requires appropriate
technological resources, analytical skills, and ethical awareness.

However, when applied responsibly and following best practices, it can bring
significant benefits to organizations, improving both business results and employee
experiences.
 The Use of Data Analytics in Human Resource Management

214

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