The Rise of People Analytics: Data Driven Decision Making in HR
Introduction People analytics is reshaping Human Resource Management by enabling data-driven decision-making. In Sri Lanka, this approach is increasingly adopted by large organizations seeking to improve workforce performance and retention. The Harvard HRM Model (Beer et al., 1984) emphasizes aligning HR policies with organizational outcomes. People analytics provides the empirical foundation for this alignment by offering insights into employee behavior, engagement, and productivity. For example, MAS Holdings uses workforce data to monitor employee performance and reduce turnover. Predictive analytics is particularly valuable in Sri Lanka’s apparel industry, where high attrition rates pose a challenge. By analyzing absenteeism and engagement patterns, HR managers can proactively address retention issues. This reflects a shift from reactive to strategic HRM. However, the rise of analytics also raises ethical concerns. Employee surveillance and data privacy are critical issues, es...