Understanding the adoption and institutionalization of workforce analytics: A systematic literature review and research agenda

Data analytics plays a crucial role in enhancing organizational decision-making. Various organizational disciplines have already embraced data analytics. However, human resources management is lagging in data-driven decision-making and, specifically, workforce analytics. Although an increasing number of studies explore the diffusion of workforce analytics, our understanding of why organizations decide to adopt workforce analytics and how organizations further institutionalize workforce analytics remains limited. Taking an HRM innovation and contextualized perspective, this systematic literature review aims to provide in-depth knowledge on factors driving workforce analytics adoption and institutionalization. The results, including relevant learnings from business analytics research, show the importance of competitive, institutional, heritage mechanisms, key decision-makers and actors, and HRM fit-related factors in the diffusion process. Based on the results of this review, various avenues for future research are presented. Additionally, insights from this literature review can help decision-makers allocate their scarce resources effectively and efficiently to cultivate workforce analytics as an organizational practice.