FROM TRANSACTIONAL TO TRANSFORMATIONAL: MEASURING THE ROI OF STRATEGIC HR ANALYTICS IN TALENT DECISION-MAKING
Published:
2026-05-02Downloads
Abstract
This study explores the transformation of the Human Resource (HR) function from a transactional role to a strategic partner through the adoption of strategic HR analytics. Using a mixed-methods approach, the research combines quantitative HR metrics with qualitative insights from HR professionals to evaluate the impact of analytics on talent decision-making. The findings reveal that organizations utilizing advanced HR analytics achieve improved outcomes in employee retention, quality of hire, workforce productivity, and engagement. The study also identifies a positive relationship between analytics maturity and organizational performance. Furthermore, it distinguishes between direct ROI, such as cost savings in recruitment and turnover, and indirect ROI, including enhanced decision-making and cultural alignment. Despite these benefits, challenges such as data quality issues and limited analytical capabilities remain. The study concludes that strategic HR analytics is essential for driving evidence-based management and achieving sustainable competitive advantage in modern organizations.
Keywords:
Strategic HR Analytics ROI Talent Management Data-Driven Decision-Making HR TransformationReferences
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