1. 1
PREDICTIVE HR ANALYTICS
FROM A NORDIC PERSPECTIVE
A quantitative study regarding attitudes towards predictive HR Analytics, and
perceptions of Nordic HR professionals’ readiness to optimally utilize the tool.
A Master thesis project by students from Gothenburg University in
collaboration with IBM Svenska AB.
Nora Jaavall Hansen & Malin Magnusson
2016

2. Table of content
Predictive HR Analytics
The purpose of the study
Attitudes towards predictive HR Analytics
Perception of HR’s capability level
Perception of HR’s readiness
Concluding remarks & suggestions
for Nordic HR functions

3. Prescriptive
Analytics
What should happen?
Predictive Analytics
What will happen?
Descriptive Analytics
What happened?
Predictive HR Analytics
The strong technological development and general digitalization is affecting how work is conducted today. This
has strong implications for the practices of Human Resources (HR), which are more or less forced to keep up
with this development. Today there is therefore an uprising trend of using analytical software systems, e.g.
predictive HR Analytics, to collect and analyze employee data [1]. Whereas predictive HR Analytics already have
gained a lot of acknowledgement in other countries, the awareness has just started to rise in the Nordic
countries. In fact, predictive HR Analytics is expected to grow and be a standard function in the US within 10
years [2].The development of these tools has emerged due to the access of Big Data, which is the term used to
describe huge datasets and the explosive amount of data transfer that have increased the last couple of years [3].
Predictive HR Analytics goes beyond the descriptive comparable analytics and it looks at meaningful variables
important for the future of the organization [4]. Furthermore, it is a cognitive system that enables collaboration
between computers and people, is easy to use and provides visual results in graphs, facts and figures.
What can it be used for?
Predictive HR Analytics can simplify HR practices such as recruitment and
selection processes, for instance by unveiling certain favorable traits among
the top performers in the organization, and thus point out the best
candidates for a position regardless of gender, age or ethnicity [5].
Optimal utilization of the tool can also identify top performers who
are considering leaving the organization. On this basis, the HR
function easier can choose where to put their resources.
Moreover, it can also map employee engagement and future
needed competences – the list is long!
Why does HR need it?
Executors of HRM have received a lot of criticism for being a redundant function in the organization, and not
showing their real contributions [6]. Especially HR’s strategic contribution connected to the overall business
performance has been a target of discussion. Interestingly, scholars have found that the HR competence that is
most influential on the financial competitiveness of the organization is their strategic contribution [7].Thus, it is
essential for HR’s survival to take action and legitimize their own profession. Further, studies have shown that it
is especially important for HR to have a good relation with line managers, who carry out HR’s strategies. Line
managers generally have a low perception of the HR function's contribution, for instance, several studies have
shown that line managers do not perceive the HR function as valuable as HR professionals do themselves [17].In
addition, in a recent study, managers argued for the need for HR to be able to prove and demonstrate how they
add value in the organization with statistics or data [8].
What is the goal with predictive HR Analytics?
The goal with predictive HR Analytics is to empower HR by improving their ground for decision making, using
driver analysis and industry leading statistical models. The software programs combine HR and business data in
order to provide HR with sufficient insights regarding strategic issues, and is argued to be necessary for HR to
make their way into the boardrooms [9][10]. The use of predictive HR Analytics is expected to enhance HR’s
storytelling and communication both horizontally and vertically in the organization, with a language that the
other professional groups understand. This way HR can more easily claim their place at the decision-making table
if not already there, and foremost have a bigger say [10]. A closer interaction and knowledge sharing with the
other units of the business can also contribute to an increased alignment between the HR function and the
overall business [11].
What is at risk?
HR professionals’ analytical capabilities have been criticized and HR is said to lack the skills needed to perform
HR Analytics [12]. In addition, if HR do not raise these skills before a plausible implementation, it is unlikely that
the analytics will provide a transformational change for the profession.

4. The purpose of the study
The choice of topic for a Master Thesis is never easy. In our case, we wanted to dig into the link between HR and
strategy in order to investigate one of our biggest questions that still remained after our time at the university:
- How can HR improve their contribution to the overall business performance?
We searched for inspiration on several blogs and forums online, and found many interesting comments
regarding the use of statistical tools to measure and improve HR’s strategic contribution. Since the moment we
first heard about predictive HR Analytics we were not in doubt – we just had to investigate this! We found that
most of the debates regarding these tools were ongoing in countries such as the US and the Netherlands, but
Nordic HR debaters had recently picked up the topic themselves. As a highly relevant, up and coming trend, it
fulfilled all our criteria regarding choice of topic.
WHY investigate predictive HR Analytics?
The criticism towards HR the last decades has concerned HR’s inability to show their importance and
contribution within the organization. To achieve legitimacy, it is therefore suggested that HR practitioners start
using hard facts and figures in order to prove that their human strategies can enhance business performance
[10]. However, scholars have questioned whether the HR function is in the possession of the capabilities required
to execute the predictive analyses [13].This view is supported by several authors who also emphasize the
challenges and lack of adequate knowledge to benefit from the analytical measures [14]. In order to get an
optimal utilization of predictive HR Analytics, it is important that the Nordic HR professionals are ready both
regarding their willingness, as in their attitudes, and their ability, as in their capabilities to make use of the
analytics [15]. Implementation of new technical solutions without being ready can have negative consequences
for the organization as a whole, but especially for HR’s strive for legitimacy since they will risk losing credibility if
new expectations are not met [16].
Even though predictive HR Analytics is the buzzing word on the “street” of HR, there are few if any scientific
articles on the topic. This clearly shows that it is an area in need for further investigation, in order to shed some
light on an uprising trend about to hit this part of the world. Since predictive HR Analytics has come a long way to
being established as a standard function in other countries, the assumption is that the same process might
happen in the Nordic countries. We strongly believe that Nordic HR professionals will benefit from the spread of
knowledge regarding this topic.
HOW was the study conducted?
The research was designed as an exploratory quantitative study. We established contact with IBM, one of the
leading providers of technological solutions worldwide. The data material was collected with the use of a web-
based survey. Target groups were HR professionals and line managers in all types of organizations in the Nordic
countries Sweden, Norway, Denmark and Finland. Respondents were invited to join through a one pager with
information about the survey, and were sampled conveniently. The final sample consisted of 104 respondents
with a distribution of approximately 70 % HR professionals to 30 % line managers. The representation of
countries where the participants were working was 61 % in Sweden, 25 % in Norway, 4 % in Denmark and 10 %
in Finland. This distribution can be explained by our larger network in Sweden and Norway.

5. Attitudes towards predictive HR Analytics
To explore how Nordic organizations relate to the upcoming trend of using predictive HR Analytics, we
measured the attitudes towards the tool among both HR professionals and line managers. Previous
research regarding the introduction of new technological innovations has confirmed the link between
individual and organizational attitudes and the desire to utilize a technological tool in the future [28]. While
positive attitudes are expected to provide a smooth transition to a new system, negative attitudes might
imply a need for more informational and convincing measures. A mapping of existing attitudes can
therefore help to optimally allocate resources during an implementation of statistical tools.
Overall, our findings show that both HR
professionals and line managers in Nordic
organizations have positive attitudes towards
predictive HR Analytics, and no significant
differences were found between the two groups.
However, the two groups seem to emphasize
different areas of importance. In general, line
managers emphasize items that relate to a business
perspective, which implies that they acknowledge
the added organizational value predictive HR
Analytics might provide. The results are promising
considering future implementations of the tool, as
line managers’ support is found to be crucial.
Moreover, both groups believe that predictive HR
Analytics will become a standard function in Nordic
organizations in the future.
Positive attitudes towards the tool among Nordic
HR professionals might be an indicator of a desire
to change. The HR function has for a long time been
in a stage where they have been criticized for not
showing their contributions to the overall business
[17] and predictive HR Analytics is expected to
improve their strategic position in the organization
[12]. For HR, this situation calls for action in order to
solve the tension and claim their rightful role in the
company. The positive attitudes among Nordic HR
professionals might be an attempt to do just so!
Line managers do also share the same positive
attitudes as HR professionals, which can be an
indicator that line managers see a need for HR to
improve their base for decision making. For
instance, a higher percentage of line managers than
HR professionals rated that predictive HR Analytics
should be prioritized the next three years, which
implies a certain pressure for change also from this
group.
EARLY ADOPTERS VS. LAGGARDS
Positive attitudes can help accelerate adoption of new technology. When organizations decide to actively take
the first step and adopt a new innovation, they can achieve benefits by acting as early adopters. In this manner,
the adoption is a consequence of a voluntary decision with the intention to enhance the organization’s
competitive position, and thus create a competitive advantage [18] [19]. Organizations can also feel pressured to
adopt new technology due to a desire and need to gain legitimacy [27].In this case, an organization may be
forced to change to catch up with their competitors that have already acted as early adopters. When someone
has already taken the first step, the potential competitive advantage will no longer be possible to achieve [20]. A
consequence of the slow reaction could therefore be that the adoption of the new technology, which often
requires substantial money, time and resources, will not be as profitable as it could have been for a prime mover
[20].

6. 4%
13%
36%
38%
9%
HR
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree to some extent
Agree
Strongly Agree
4%
11%
25%
31%
29%
LINE MANAGERS
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree to some extent
Agree
Strongly Agree
17%
31%
32%
16%
3%1%
HR
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree to some extent
Agree
Strongly Agree
28%
18%29%
21%
4%
LINE MANAGERS
Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree to some extent
Agree
Strongly Agree
The graphs provide an example of how line managers put more
emphasis on the organizational value that predictive HR
Analytics might provide, compared to HR professionals. Even
though both groups seem to agree that the use of the tool will
provide significant return on investment (ROI), there are a
greater proportion of line managers (29 %) that strongly agree
with the statement compared to HR professionals (9 %).
The graphs illustrate how the respondents in some cases
question the necessity of the tool. A high percentage of both
HR professionals and line managers disagree that predictive HR
Analytics are worth the money. However, it is noteworthy to
register the high amount of respondents from both groups who
neither agreed nor disagreed with this-statement.
.
… line managers had a higher percentage that answered the
different statements with Neither Agree nor Disagree which
might imply that they do not have sufficient knowledge
regarding the tool and its application areas.
OVERALL ..
STATEMENT:
Predictive HR Analytics will provide significant return on
investment over the long term.
STATEMENT:
Predictive HR Analytics is worth the money!
Attitudes towards predictive HR Analytics cont.

7. On the IT Architect perspective HR professionals rated their awareness of the IT landscape as higher than the line
managers did. However, almost 70 % of the line managers agreed to some extent with statements claiming that the HR
professionals have IT Architect capabilities. On the Software perspective 30 % of the line managers rated that they do not
know if HR has the system they need to perform accurate tests in addition to 26 % of the HR professionals.
Perception of HR’s capability level
An optimal use of predictive HR Analytics will require a new mixture of capabilities and a shift of focus
within the HR department itself. It is therefore important for the HR function to rethink their actions, in
order to contribute to the overall business goals as a strategic partner [21] [22]. Six different capability
perspectives, derived from a capability framework [23], were in explored from both HR professionals’ and
line managers’ view. These capabilities are required of HR to possess in order to make successful use of the-
analytical-tool. Crucial is that a mixture of all of these perspectives is in balance.
Our findings show that Nordic HR professionals seem to
have a high perception of their own capabilities
compared to line managers, and significant differences
between the two groups were found. This is in
accordance with previous studies regarding line
managers’ view of HR professionals [17]. In order for a
successful transformation of the HR function towards a
strategic partner, it is crucial that the HR professionals
have a good relationship with line managers [22]. Thus, in
the current situation, it could be difficult for Nordic HR
professionals to show their strategic-contribution. A
remarkable finding was the high amount of line managers
that neither agreed nor disagreed with the statements.
This implies that the line managers are not aware of how
HR adds value to the organization, and shows a general
lack of knowledge regarding Nordic HR professionals’
capabilities. This is in accordance with previous research
regarding HR’s inability to report what they are doing in
the organization [6] [17].
Overall, Nordic HR professionals have a very high
perception of their own capability level. This might imply
that Nordic HR functions are satisfied with their old
working routines and do not strive for changing their
procedures [24]. However, it is possible that the HR
professionals actually do have the capabilities necessary
to optimally utilize predictive HR Analytics in order to
gain a strategic role as they claim. In that case, they are
unable to communicate their contribution out to the line
managers [17]. According to previous research, the
chance for HR to end up at the decision-making table
increases when they can provide sufficient data [13] [10]
[25].We argue that predictive HR Analytics can provide the
HR function with numbers and figures necessary to show
the line managers how they add value.
The BUSINESS Perspective – do the HR professionals have the required knowledge and capabilities to understand the specific
business they exist in and make actionable practices derived from it?
The HUMAN RESOURCES Perspective- does the HR department have sufficient knowledge of core HR capabilities and do they
act according to HR strategies and processes?
The STORYTELLER Perspective – do the HR professionals market their importance in the organization and do they present
results, practices, strategies in an understandable way?
The DATA SCIENTIST Perspective – does HR have the required capabilities to provide accurate data and manage to accomplish
statistical tests?
The IT ARCHITECT Perspective- does the HR department have awareness of the IT landscape and where they could find
qualified data in order to be more efficient?
The SOFTWARE Perspective- does the HR department currently have the systems they need in order to perform predictive HR
Analytics?
Based on the HR capability wheel framework by Coolen & Ijsselstein, 2015

8. .
2 4
1
14
2
50
55
30
42
LM
HR
Business Perspective (N=104)
Numbers in %
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly AgreeThe graph above shows that over 90 % of the HR professionals agree with statements claiming that Nordic HR professionals acquire
business perspective capabilities. Even though a high amount of the line managers perceive that HR professionals have Business perspective
capabilities, a significant difference between the groups were found. In addition, 14 % answered that they neither agreed nor disagreed
with the statements, indicating that some line managers are not aware of HR’s capabilities.
2 2 12
2
55
47
29
51
LM
HR
HR Perspective (N=104)
Numbers in %
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
None of the participating HR professionals disagreed or strongly disagreed with statements claiming that HR professionals acquire Human
Resources capabilities. Moreover, more than 50 % answered that they strongly agree with the statements which indicates that they
perceive this capability as very high. A significant difference was found between the groups. Still, line managers mostly rated that they do
believe the HR professionals have this capability.
5
1
23
13
18
4
41
67
16
15
LM
HR
Storyteller Perspective (N=104)
Numbers in %
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
13 % of the HR professionals and over 1/5
th
of all line managers disagreed with statements claiming that Nordic HR functions market their
importance in the organization. Remarkable is that 5 % of the line managers strongly disagree with these statements. However, over 4/5
th
of all HR professionals agreed to some extent with statements claiming that they do have Storyteller capabilities. A significant difference
was found between the two groups.
4
2
18
15
30
9
37
62
11
12
LM
HR
Data Scientist Perspective (N=104)
Numbers in %
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
Not even half of the line managers agree to statements claiming that the HR professionals in Nordic organizations have capabilities
needed to perform statistical tests. Furthermore, 30 % of the line managers answered that they neither agree nor disagree to the
statements, indicating that the do not know if the Nordic HR professionals acquire this capability.

9. Perception of HR’s readiness towards
predictive HR Analytics
The level of readiness for change can have tremendous impact on a new technology’s success or failure.
Organizational readiness can be defined as both the willingness and ability for action [15]. It is important
that the organizational members have a shared dissatisfaction with the current situation, and thus have
a common desire to change [16][15]. In this case, both HR professionals and line managers should see a
need for the introduction of predictive HR Analytics in order to assure a successful implementation. It is
also important that both groups believe that the organization possess the capabilities necessary. In
situations where individuals and/or organizations are not ready before the change occurs, it can cause
high risks for failure. It can also lead to high risks especially for the initiators of the change, in many cases
HR professionals, as they are at stake of losing credibility [16]. Thus, to explore whether or not HR
professionals in the Nordic countries are ready to optimally utilize predictive HR Analytics, we compared
the participants’ perceptions of HR’s willingness, as in their attitudes, and their ability, as in their
capability level.
Our findings show that there is
a difference between line
managers’ and HR
professionals’ perceptions of
HR’s readiness towards
predictive HR Analytics. HR
professionals have a very high
perception of their level of
capabilities necessary for
optimally utilizing predictive HR
Analytics as well as positive
attitudes towards the tool.
Thus, HR professionals seem to
have the perception that they
would be ready to optimally
utilize predictive HR Analytics if
it were to be implemented.
However, even though line
managers also have positive
attitudes towards the tool, they
have a much lower perception
of HR’s capability level.
3,4
3,5
3,6
3,7
3,8
3,9
4
4,1
HR professionals Line Managers
Perception of HR professionals’
readiness
Attitudes Capability level

10. We argue that Nordic line
managers’ positive attitudes
indicate a high organizational
willingness for change.
However, their perception of
the organizational abilities
regarding predictive HR
Analytics is low. Even though
the shared positive attitudes
among both groups can help to
speed up the process towards a
potential implementation, the
perceived low capability level
might slow down the whole
process of implementing the
tool. The different mind sets of
the two groups may cause
difficulties during a potential
implementation, for instance as
the fact-based numbers
provided from the tool might
not be applicable if line
managers do not trust that they
were produced correctly [15].
Based on our investigation and
findings from the current study,
we believe that predictive HR
Analytics will start spreading
among Nordic organizations
due to competitive pressure. At
the moment, the practice is
characterized as modern and
efficient, and might have the
chances of getting established
as a standard function in the
future. It is therefore crucial
that Nordic HR professionals
grasp the opportunity.
Interestingly, more than 60 %
of the line managers stated
that their expectations towards
the HR functions will increase if
predictive HR Analytics were to
be implemented.
This means that HR is in high
risk of losing credibility if the
new expectations from line
managers are not met [26]
Another consequence is that
other departments might take
control over the analysis if HR
fails to get involved, which can
cause the human capital
knowledge to get lost in the
process.[12]

11. Concluding remarks & suggestions
for Nordic HR functions
This study has investigated to what extent the Nordic HR professionals are perceived to be ready for
optimally utilizing predictive HR Analytics in order to gain a strategic role. Thus, both HR professionals’
and line managers’ attitudes were explored, as well as their perceptions of HR professionals’ capability
level. In this manner, it was possible to get an insight in Nordic HR professionals’ willingness and ability
to optimally utilze the tool, hence also draw conclusions regarding their perceived readiness.
Due to high level of positive attitudes, we conclude that:
 Predictive HR Analytics will start spreading between Nordic organizations the next years.
 Nordic HR professionals as a professional group are in a stage where they are exerting pressure
on their organizations in order to legitimize their own profession.
 Competitive pressure will increase as soon as predictive HR Analytics starts implementing in
Nordic organizations and as the trend becomes more visible.
Due to differences in perceptions of capabilities, we conclude that:
 HR professionals do perceive themselves as ready to optimally utilize the tool to a high extent.
 Line managers agree that HR professionals are ready to some extent. However, line managers’
perception of HR’s readiness is at a much lower level.
 It is possible that HR professionals actually have the capabilities necessary, but they fail to
communicate this out to the line managers. Thus, HR lacks storyteller capabilities.
 Overall, the shared perception is that Nordic HR professionals are partly ready for predictive
HR Analytics, but it requires certain preparations to be done in order for optimal use.
Our suggestions are…
 … that HR professionals in the Nordic countries should push their own transformation towards
becoming a strategic partner. Even though HR is perceived by line managers as not ready to
claim their strategic role, they can get ready by utilizing predictive HR Analytics.
 … that HR emphasize how they market their importance and how they communicate it out to
the rest of the organization. Since HR is perceived to have low capabilities regarding
storytelling and analytical competences, it is important that HR step up their game in order to
show their value for the whole organization, but also in order to legitimize their own
profession.
We argue…
 …that the introduction of numbers and figures can increase HR’s confidence and hence
empower HR in a simple and credible manner.
 …that when HR is capable of showing how they add value to the overall business, we believe
that it will improve the perception of all HR’s capabilities in general!

12. IBM is a leading provider of software solutions worldwide, and is rapidly
expanding its predictive HR Analytical platform Kenexa Talent Insights in
the Nordic countries. Kenexa Talent Insights is a cognitive tool tailored
for the HR function and it is built upon the Watson Analytics technology.
For more information please visit:
www.ibm.com
or contact:
Anna Carlsson
Sales Leader, Smarter Workforce Nordics
anna.carlsson@se.ibm.com
+46 707932915
The authors of this Master thesis project and report are Nora
Jaavall Hansen and Malin Magnusson, who recently graduated
from the programme Strategic HRM and labour relations at
Gothenburg University.
We are now looking for new opportunities within Sweden and
Norway!
In case of any further questions do not hesitate to contact us!
Malin Magnusson:
magnusson.malin4@gmail.com
+46 760312931
Nora Jaavall Hansen:
nora.jaavall.hansen@gmail.com
+47 48048844
If you want to learn more about
predictive HR Analytics you can find our
full Master Thesis here:
https://gupea.ub.gu.se
The title:
Ready or Not?
A quantitative study regarding HR
professionals’ readiness towards
predictive HR Analytics from a Nordic
perspective.

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