1. Confidential document Anaële DJAILEB
THE IMPORTANCE OF BIG DATA
IN HR STRATEGY
The lack of tools in multinationals and the needs creating by the digital, drive us to wonder
about big data. In fact, digital is creating a certain number of data and information. For instance,
the number of email received and send daily is continually increasing.
Big Data’s definitions are multiple. Big data means, among other things: go from something
basics/databases to information. Big data allows us to use data and to understand it. But mostly,
big data is the fact to treat an infinite quantity of data, faster. Thanks to an algorithm, data can
tell a story: data storytelling could guide decision. Therefore, algorithm has to whisper the story
to tell.
Human Resources function is faced with meeting the longer term demands placed on
corporations in society. Indeed, Human Resources always face an outstanding number of
competing challenges and the main reproach is that Human Resources Department can’t adjust
as quickly as the Marketing.
For instance, data science is far used in Marketing whereas Human Resources still do not know
how to use it properly. The reason may be simple: Human Resources Department is often
considered as a centre of cost, not creating any value, so, investment and change come after.
Big data can be used to improve companies’ transactional and traditional services by being more
efficient, it could offer a competitive edge. HR could be able to propose services that answer the
employees’ demand.
So, with the market evolution, HR has to adapt and be more reactive. Big data could offer the
possibility to create a HR supply meeting the demand. The importance of big data in the HR
strategy has to be determinate to understand the possibilities it could offer.
A study showed that productivity increase five to six percent when analytics are used to
develop the corporate strategy. The corporate strategy has for mission to guide the corporation
and its business in the long run. In order to define the strategy, different models and tools are
used. However, the bounded rationality cannot make possible to define a flawless strategy. In
fact, each decision is made with the level of information we have. Analytics are used to limit this
lack of information by getting a maximum of knowledge.

2. Confidential document Anaële DJAILEB
Each corporation strategy is made to gain a competitive advantage, and get the most of the
business it can get. Innovation is often a solution. It provides a competitive edge. Once the
corporate strategy is defined, each department has to develop a business policy. Business policy
represents each department strategy.
Digital transformation implies innovations and changes for companies. So, it also means, it offers
opportunities.
The opportunity we decided to focus on, is big data. Big data is the next step of analytics.
Digital transformation made possible to treat an enormous quantity of data. This innovation
does not change the goods or services companies are selling but is changing the way corporations
work.
More particularly, big data can create new opportunities and a real competitive advantage in
Human Resources. Even if the perks of big data are known, companies are still fearful to embrace
it. So, big data is not a significant part of the company strategy yet because, it implies new tools
and competences, the market cannot provide it yet or not enough. Companies begin to accept it
but they are not dedicated many resources into it. The advantage of big data is not clear for
corporation and they still decide if it worth their investment. However, some companies embrace
the fact that big data can make the difference in HR and provide a service worth noticing. Big data
is definitely not the only way to define a HR strategy but it is a must have for HR to define HR
strategy if it wants to be more proactive and give a predictive perspective.
But the HR function has to used big data with precaution to respect the regulation and
gather the right data to work with. HR big data offers new opportunities and level of analysis for
HR. Thus, big data has an essential role on the HR strategy but in order to really influence the HR
strategy, the HR department has to decide if it will get on board or not.
This S.W.O.T summarize the perks and inconvenient of big data in HR. If HR department
implements it, with the right use and precaution, it will bring the HR at another level, making
possible new outcomes.