TITLE OF RESEARCH PAPER – Revolutionizing IHRM with People

Analytics

TYPE OF THESIS – Research Essay

NAME – Shweta Kumari Jain

MATRICULATION NUMBER – 42202129

COURSE NAME – International Human Resource Management

DEGREE PROGRAM – Masters in International Management

NAME OF TUTOR – Katharina-Maria Rehfeld

DATE – 5th May 2023

TABLE OF CONTENT

Introduction

1. Human resource – an insight

2. International Human Resource Management (IHRM)

3. Relevance In Contemporary World

3.1 Recruitment of employees

3.2 Appraising Performance
3.3 Necessary training
3.4 Remuneration
4. Analytics and its Role

5. People Analytics – Concept and Evolution

6. Role Of People Analytics in IHRM

6.1 Increased workers’ productivity

6.2 Value the workforce
6.3 Analyses for employee management
6.4 Macroscopic view
7. Empowering IHRM: How People Analytics Can Enhance HR Management in
International Organizations

8. Google: A Leading Example of People Analytics in IHRM

8.1 Establishment of “Pi-lab”

8.2 Algorithm-based people management

9. Overcoming Obstacles: Applying People Analytics in a Global Workplace.

9.1 Non-uniform nature of data

9.2 Legal challenges
9.3 Cross-cultural barriers
9.4Linguistic challenges
10. IHRM Success with People Analytics
10.1 Mariott
10.2 Unilever
10.3 Nestle
10.4 Siemens

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LIST OF ABBREVIATIONS

HR – Human Resource

HRM – Human Resource Management

IHRM – International Human Resource Management

MNE – Multi-National Enterprise

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INTRODUCTION

In this modern era, businesses are presented with unprecedented opportunities to expand their
operations and reach new international markets. The rapidly changing landscape of globalization
has made it crucial for organizations to focus on improving their Human Resource management, to
adapt and compete effectively in this new environment. As organizations expand globally, they must
also globalize their Human Resources function to ensure that they have the right talent in the right
place at the right time. The question that this research paper will try to answer is “the role and
application of People Analytics in International Human resource Management”.

The growth of international business has led to the development of IHRM. People analytics plays a
vital role in making effective employee decisions for IHRM. By utilizing data analysis techniques,
organizations can modify and improve their talent management processes to increase productivity
and overall performance. Today, analytics is highly valued and plays a critical role in decision-making
for globally active companies. People Analytics is aiding the rightful expansion of firms globally via
IHRM. As written by Davenport (2013) “In the new era, big data will power consumer products and
services”, As the importance of data collection regarding the workforce is increasingly recognized, it
becomes clear that effective and efficient work from employees leads to greater consumer
satisfaction and growth for organizations. This paper aims to fill the knowledge gaps and provide
relevant information with appropriate evidence to effectively support the argument.

Further there will be a unambiguous elucidation about the function of human capital analysis in
shaping IHRM’s strategy to satisfy the current and future objectives of the Multinational companies.
The paper provides further research and explanation on the implementation and adoption of people
analytics in various organizations. The research aims to illuminate the significance of people
analytics in enhancing the global success of businesses and strengthening their position in the
international market. The paper also includes examples to illustrate these concepts in a more
tangible way. People analytics is very relevant as we move slowly to a more globalized,
technologically and culturally advanced world.

This research paper delves into various concepts pertaining to the research question, providing
comprehensive insight and detailed explanation. Firstly, the concept of human resource
management is conceptualized, with a focus on its evolution towards internationalization. Secondly,
the relevance of International Human Resource Management (IHRM) in the contemporary world is
briefly explored. Furthermore, the research analyses in-depth the significance of people analytics in
the field of IHRM which can be more clearly understood with Google’s case. Finally, real-world
examples are employed to support and validate the research findings.

This research paper does not claim to provide a conclusive stance on the impact of people analytics
on IHRM. Instead, it serves as a starting point for presenting plausible arguments that can be utilized

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for a more comprehensive study in the future. The time ahead will surely offer new opportunities and
challenges in the implementation of human analytics in IHRM that cannot be anticipated.

1. Human resource – an insight

The employees of an organisation are considered as its greatest asset. They serve as a valuable
resource as they have skills and abilities to be productive for their employer. The workforce of the
company, which consists of knowledgeable, skilled, and experienced human capital, adds to the
value of the company. They do all the groundwork for all the possible gains that could offer the
company a competitive edge.

The concept and thought relating to the field of human resource arose in the 19thcentuary during the
wake of Industrial revolution. Robert Owen And Charles Babbage emphasised the importance of
labour in the success of any organization (Griffin, 2007). The field of human resource was then
specifically recognised in the early 20th century by Frederick Winslow Taylor through his extensive
exploration in the field of scientific management which is popularly known as Taylorism (Merkel,
2022). His research focused on improving the economic efficiency of industrial labour which he
regarded as the most important unit in manufacturing industry. Taylorism laid the foundation of
modern Human resource management which strives to serve the working capital of the world.

In today’s modern world, human resources of any organisation are seen as being the most important
part of its overall structure. The workforce helps the business flourish. The HR division is in charge
of protecting and taking care of the company's employees. By looking out and caring, we mean
meeting their needs, giving them the training they need to best tailor their work to the demands of
the company, appraisals and rewards to the meritorious, necessary benefits and recognition, living
expense coverage, access to transportation and many more. These benefits are both essential and
necessary to employees performance success both nationally and internationally. When we say
internationally, it widens the area of research and work. Organizations which are active
internationally or the ones which are looking forward to expand their area of business across their
national borders needs to plan their Human resource management effectively and consciously. With
the international vision, an organization’s human resource management exposes itself to the wide
global needs.

2. International Human Resource Management (IHRM)

Human Resource Management is a product of supervision of the workforce and the modification of
their working culture to maximise their creativity in their particular field of work. The ultimate goal is
the triumphant completion of the firm’s objectives. This function of HRM takes a swift turn when the
firm decides to position itself globally. With the establishment of management headquarters in foreign
countries, an organization develop into Multinational Enterprise (MNE). This further leads to the
internationalization of human resource management. This widens HRM’s micro as well as macro
level of management.

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International Human Resource Management (IHRM) deals with the global administration of the
workforce. (Bartlett & Ghoshal, 1998). Managing them in a way that could help boost international
growth of the company. The sole intention of IHRM is the success of the MNE globally. IHRM is
responsible for maintaining and advancing the competitiveness of the firm in the global market, to
substantially increase the efficiency of the employees, to make them locally responsive, provide
adequate training so as to transfer new information and learning across the globally dispersed units.
IHRM is capable of shaping the firm’s flexibility and adaptability across the domestic borders to
specific foreign needs in the shortest of time periods.

3. Relevance In Contemporary World

Owing to the technological advancements and the amplifying business competitiveness, the concept
of IHRM is indisputably relevant in this modern 21st century and the upcoming more challenging
years. The internet has brought about a significant transformation in both personal and business
aspects of people’s lives. As a result, numerous companies have expanded their reach to a global
level by offering their products and services worldwide. This increased exposure has subsequently
led to the gradual establishment of specific business units in different countries. Such changes in
organizational structures have ultimately reinforced the concept of IHRM in this context.

With growing international connectivity and interdependence which has led to the development of
the popular term of globalisation, business and organizations are continuously expanding their
domain to cope up with this contemporary economic requirements of the world. IHRM has helped
businesses to ease their global transition. IHRM for many firms is likely to be critical to their success,
and effective IHRM can make the difference between survival and extinction for many MNEs. (Dolan,
2007). IHRM duties become more complex with international context:

3.1 Recruitment of employees and their selection from the host country or choosing expatriates.
This depends on company’s exclusive recruitment policies. But when expanding their branches in
another countries, they can send their own country’s employees as workers there or they can choose
and recruit the employees from the host country. The latter would be the best option as this way the
company would be able to integrate with possible cultural and linguistic challenges.

3.2 Appraising Performance on the basis of employee’s competency, inter-cultural adaptability,

etc. With the business entering new global locations, it becomes challenging for the employees to
understand and cooperate with the differences, most particularly differences in leadership and
management roles. So to encourage and motivate them, HR needs to look after necessary
appraisals from the employees to get some feedback. It could improve present working environment
with some new reforms.

3.3 Necessary training to pace up with new on-going cultural and technological advancements in
the host country. Training is required at every step of organisational development. It can include
training in language, cultural cooperation, new technological developments, etc. Training is important

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for improving an employee’s overall performance with time. This makes an employee more motivated
to do new set of work in which he/she was trained for.

3.4 Remuneration should be fair, equitable, legitimate and uniform. This is an ultimate task for the
IHRM. Employees are paid according to their roles in the company. IHRM should make sure there
are no discrimination especially based on gender. Additionally different countries have differing
paying structure for different roles, this should also be considered.

IHRM encompasses three primary areas of focus, which include: (a) a multinational enterprise's
approach to managing its human resources; (b) the resources invested in its HR organization, such
as time, energy, and financial resources; and (c) the geographical location where these resources
are allocated, and HR decisions are made. Companies may allocate significant resources to HRM
on a global scale. IHRM has clearly become significant since 2020 with the entry of Corona pandemic
in the world. This has drastically disrupted the way work is done in the offices at the greatest level,
especially for the firms that are globally active. There has been a major change in the way IHRM
works. This has given even more greater focus on human analytics in HR. This makes people’s
analytics very much relevant to IHRM in contemporary business world.

4. Analytics and its Role

Analytics is the greatest thing ever happened to the economic world. Though being a crucial branch
of computer science, It entails great potential for giving organisation meaning information about its
stakeholders, competitors, environment and so on. It uses math and statistics to interpret data and
provide quantitative information out of it. This data is measurable. Analytical data is collected through
various experiments, surveys, careful observation, etc. This data is massive, it is then utilized to
discover, interpret and share latest insights and knowledge to fill the strategical gap in accomplishing
distinguished business objectives. Analytical data is very promising, practical and more scientifically
tested, that is why it should be valued more than simple psychological instincts.

The field of business analytics only began to take off in the middle of the 1950s as a result of the
development of tools that could generate and collect much more data than the unaided human mind
was ever capable of, as well as identify patterns in it much more quickly. (Waber, 2013). This led to
significant advancements in the development of an unbiased, thorough understanding of significant
business phenomena and provided managers with the fact-based understanding they needed to
make judgements devoid of intuition. Data on sales, customer interactions, industrial processes, and
other topics were initially captured, compiled, and analysed. 21st Century marked the beginning of
the new era of analytics calculation with the advent of internet and growing social media.

In the present era, it is not only technology-based firms or online businesses that can generate
products and services using data analysis. (Davenport, 2013). It is now applicable to all companies
in every industry. If your organization is involved in manufacturing, transportation, consumption, or
customer service, you have access to vast amounts of data related to those activities. Every product

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delivery, consumer interaction, and device usage leave a digital trail. By analyzing this data, you can
provide more value to customers and create new market opportunities. Additionally, you can
implement analytical techniques and optimization strategies in every operational decision made at
the front lines of your business.

Target is well-versed in the art of utilizing analytics to further their business goals. (Waber, 2013).
With a specialized statistics department in place, their main objective is to comb through the vast
amount of data collected from their stores in order to uncover fresh perspectives that they can employ
to increase sales. This treasure trove of information is not limited to a simple record of one's
purchases at Target; it includes valuable demographic data such as age, gender, marital status,
number of children, and residential address, among others. Additionally, activity on their website is
also incorporated into their customer models, adding to the depth and breadth of their analytical
capabilities.

5. People Analytics – Concept and Evolution

The process of observing and analysing human conduct, in this particular instance employee
behaviour. It is the process of gathering information about employees and the workplace and using
it to improve their productivity and effectiveness. It is also known as talent analytics and HR analytics,
and it involves the use of data analysis on employee and candidate issues to comprehend how they
affect business objectives and evaluate the success of human resources initiatives. (Daniel, n.d.).

The use of People Analytics in International Human Resource Management (IHRM) can be traced
back to the 1980s, where it was primarily used for analyzing and planning the workforce. (Bersin,
2017). Nonetheless, it was not until the early 2000s that the term "People Analytics" was introduced
to describe the application of data analytics to the HRM field. During the 2010s, the emergence of
big data and advanced analytics tools led to increased attention and investment in People Analytics
within the context of IHRM. Organizations began to recognize the potential benefits of leveraging
data analytics to inform HR decision-making and enhance overall organizational performance.

In recent times, the utilization of People Analytics within the context of International Human Resource
Management (IHRM) has become more prevalent, with an expanding number of organizations
integrating it into their HR strategies. (Deloitte,2021). The mainstream adoption of People Analytics
can be attributed to the increased availability of sophisticated analytics tools, the proliferation of the
gig economy and remote work arrangements, and the necessity to attract and retain high-caliber
talent in a fiercely competitive global marketplace.

6. Role Of People Analytics in IHRM

Human capital analysis is very important to IHRM work and process. Their duties towards any MNE
are vast and crucial as they pave the way for employees success in the organization internationally.
Here are some effective roles of IHRM towards its workforce management:

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6.1 Increased workers’ productivity - The Human workforce is the most vital and critical resource
to any organization. Every firm’s ultimate objective is their expansion, most significantly, an
international one. They long for a successful and lucrative future for their organization both nationally
and globally. For this every minute details needs to be reconsidered and remodelled. For example :
establishing new guidelines for work-life balance, flexible work timings, more breaks, opening a free
snack bar, play rooms, rooms for naps, open and green area for fresh area, fitness area, etc.
Goldschmied et al. (2015) from University of Michigan found that after getting up from a 60-minute
midday nap, a person feels less impulsive and has greater tolerance for frustration. This is also true
for employees around office environment.

6.2 Value the workforce - There are various other statistics and scientific explanations for the
justification and importance of little changes in work environment. This is where people analytics
comes to the rescue. These analytical metrics help human resource department to boost the
performance management and work efficiency of the employees by providing necessary data- driven
insights. They understand and study people’s issues, unproductivity, experiences, unique talents,
individuality, behaviour, academic and personal background and then work accordingly to maximise
the workforce’s positive experience alongside improving business outcomes for corporate success.

6.3 Analyses for employee management – Bodie et al. (2017, p.02) mentions that people
analytics is a relatively new field, its application has the potential to assist employee in making well-
informed HR decisions. The use of data can enable firms to identify the best-suited candidates for
employment, improve employee performance, and predict attrition to termination. Furthermore,
people analytics can offer insights into employees’ motivation, everyday workplace matters,
including employee location and optimal use of break times. The data necessary for these decisions
may be sourced through novel approaches such as computer games, electronic communication
monitoring, and ID badges that record conversation tones and worker movements. Additionally,
external sources of data, such as real estate records or google searches, may also be utilized for
analytical processes.

6.4 Macroscopic view- HR analytics provides a very broad view of the working capital. It oversees
and observe through the macro lens. Considering the political, legal, technological, economical and
environmental aspects of the organization and then providing the ideas accordingly to reform the
company’s work. Macro view is relatively more important for the firms which are active internationally.
This therefore becomes beneficial to IHRM and its employee management techniques. Effective
leadership in IHRM can have a macro-level impact on the employee experience and business
outcomes worldwide. (St. Thomas University, 2021). People analytics provides a macroscopic view
of the impact that employees have, and the factors that allows them to maximize their contributions.
By uncovering relationships, trends, and patterns, leaders can make informed decisions, identify
potential issues, and take proactive measures to enhance operational effectiveness.

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According to Fineman (2017) for more than 70% of companies, people analytics is a high priority,
However only 9% of them feel confident in their comprehension of the talent aspects that are
responsible for driving performance within their organizations.

The application of analytics has expanded to encompass a broad range of business issues, with the
most significant emphasis on recruitment, followed by performance evaluation, compensation,
workforce planning, and retention. (Fineman, 2017). There is also a tremendous surge in the
utilization of organizational network analysis (ONA) and the analysis of employee behaviour to better
comprehend opportunities for enhancing business performance.

7. Empowering IHRM: How People Analytics Can Enhance HR Management in

International Organizations

The application of data analytics to IHRM through People Analytics aims to facilitate informed and
strategic HR decision-making. By leveraging data insights, People Analytics offers numerous
benefits to international organizations in managing their human resources effectively.

One of the primary benefits of People Analytics is its ability to help organizations address talent gaps
and shortages, which is crucial for managing a global workforce. Through data-driven insights,
organizations can evaluate the competencies and skills of their employees and identify areas that
require training and development. This helps align HR strategies with business goals, leading to
improved organizational performance (Brynjolfsson & McAfee, 2014).

Another benefit of People Analytics in IHRM is its potential to aid organizations in managing
employee engagement and retention. Through the analysis of data on metrics such as employee
satisfaction and turnover rates, organizations can gain insights into the reasons behind employee
disengagement and turnover. By identifying the root causes, organizations can proactively
implement measures to address these issues and cultivate a work environment that fosters
employee retention and engagement. (Elsbach, 2018).

Moreover, People Analytics can enhance the recruitment process for organizations by analyzing
data on job postings, applicant tracking, and candidate selection. With these insights, organizations
can optimize their recruitment processes and identify the most effective sources for talent acquisition.
This approach can enable organizations to attract and retain top talent in a competitive global
marketplace (Gartner, 2021).

People Analytics can be an invaluable tool for international organizations in effectively managing
their human resources. By leveraging data insights, organizations can make informed and strategic
HR decisions that align with their business objectives and ultimately enhance their overall
performance.

Human capital analytics provides a sophisticated approach to screening employees and identifying
the most suitable field of work for them. This requires an appropriate talent analysis methodology,
which is a crucial component of people analytics. By leveraging talent analysis, international
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organizations can effectively manage their workforce and maximize productivity. Moreover, talent
analysis can be an effective tool for gaining insights into the workforce of a company, which can help
to improve overall organizational performance.

One crucial challenge for HR at the domestic headquarters is the lack of knowledge about employees
in different countries, including cultural differences, language barriers, and varying work behaviors
and attitudes. IHRM was established to address these challenges and facilitate better employee
management and coordination between employees and employers.

To address these challenges, International Human Resource Management (IHRM) is a specialized

area of HR that focuses on managing employees across different countries and cultures. It provides
a framework and set of guidelines for managing a global workforce, considering cultural and linguistic
differences, legal requirements, and local labor market conditions. By adopting IHRM practices,
organizations can improve their employee management and coordination, and ultimately enhance
their overall performance in the global marketplace.

8. Google: A Leading Example of People Analytics in IHRM

Google is a top-tier technology firm globally, renowned for its progressive workplace culture and
impactful HR policies that make it a preferred employer. Additionally, Google is among the pioneers
in people analytics and has achieved superior business outcomes by leveraging analytics in its HR
operations. In this regard, data and analytics have supplanted the opinions, intuitions, and
sentiments of its managers and now form the bedrock of all people-focused decisions. (Sullivan,
2014). The following text explains that how google implemented people analytics through IHRM in
employee management.

8.1 Establishment of “Pi-lab”

To integrate data-driven decision-making into HR management, Google has established the People
& Innovation Lab. This centre is staffed with psychologists, decision scientists, and researchers who
conduct applied research and development on organizational practices that affect employees. One
of the primary objectives of the lab is to align the HR practices of the organization with academic
research and support its decisions with data and science. The lab has conducted amazing innovative
work, such as the well-known "Project Oxygen". (Shrivastava et al. 2018). Project Oxygen under
Google’s IHRM analyses about how the employees expected to be managed and provide guidelines
about responsibilities and roles of the managers.

8.2 Algorithm-based people management

Organizations place great importance on hiring and retaining employees, and in the past, managers
often relied on intuition, assumptions, and impressions to identify candidates who would perform well
or remain with the organization. (Shrivastava et al. 2018). However, Google has taken a ground-

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breaking approach by developing mathematical algorithms that use statistics to help make hiring and
retention decisions that are less subjective.

The algorithm created by Google allows the recruitment team to re-evaluate candidate profiles that
were previously overlooked, ensuring that valuable applicants are not missed (Gardener et al.,
2011). It achieves this by mapping employees' attitudes, behaviours, and personality traits to the
organization's skill requirements using extensive online surveys. Mathematical formulas are then
applied to assign scores to applicants, predicting the degree of candidate-organization fit. This has
helped eliminate subjectivity in the recruitment process, resulting in the selection of highly qualified
candidates.

In a similar way, the retention algorithm draws on past data such as employees' compensation,
performance reviews, and promotions to identify those who are at risk of leaving the organization.
(Shrivastava et al. 2018). This innovative talent management approach empowers management at
Google to act before it is too late and enables the personalization of retention solutions. Through its
pioneering use of algorithms, Google has revolutionized the recruitment and retention process,
enabling the organization to make more informed, data-driven decisions that lead to the selection
and retention of the best talent.

These advancements have also shed the light on various problems people analytics face in the
international world. The vast diversity of people, cultural differences, language barrios are some of
the very common problems. Let’s have a look on these challenges and how we can overcome them.

9. Overcoming Obstacles: Applying People Analytics in a Global Workplace.

In the realm of human resource management (HRM), people analytics has gained significant
prominence as it enables organizations to make well-informed decisions about their workforce.
Nevertheless, the utilization of people analytics in an international context presents various
complexities that demand attention to ensure its successful application.

9.1 Non-uniform nature of data - One of the challenges is the absence of uniformity in data
collection methodologies across diverse nations and regions. (Bersin, 2015). This lack of consistency
can result in inconsistencies in data, impeding the ability to compare and analyze information. In
certain countries, employees may feel reluctant to disclose personal information like age or gender,
which can lead to limitations in the scope of available data for analysis.

9.2 Legal challenges - In addition, the implementation of people analytics in an international setting
also faces legal and ethical challenges. (Bersin, 2015). Various countries have different laws and
regulations that dictate the collection, utilization, and storage of personal data. Therefore,
organizations must ensure that they comply with these regulations and that the application of people
analytics does not violate the privacy rights of their employees.

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9.3 Cross-cultural barriers - The interpretation and application of people analytics can also be
influenced by cultural differences, which pose another challenge. (Collings & Mellahi, 2019). For
instance, variations in cultural norms can affect how employees respond to surveys or perceive
certain HR practices. To ensure the insights obtained from people analytics are meaningful and
applicable, organizations must consider these cultural differences.

9.4 Linguistic challenges - In an international context, language barriers can create hurdles for
effective people analytics. (Bersin, 2015). When employees speak different languages, it can lead
to inaccuracies in data collection and analysis. This can, in turn, hinder the organization's ability to
make informed decisions based on the insights gained from people analytics. Therefore, it is
essential for organizations to find ways to overcome language barriers and ensure accurate and
meaningful data analysis.

To fully harness the benefits of people analytics in their global workforce, organizations must
consider the challenges inherent in an international context. These challenges include addressing
issues related to data consistency, legal and ethical considerations, cultural differences, and
language barriers. Failure to do so can hinder the effectiveness of people analytics and result in
inaccurate data and flawed decision-making. By carefully considering these challenges and
developing strategies to overcome them, organizations can ensure that their use of people analytics
is both effective and compliant with legal and ethical standards. Ultimately, the successful
implementation of people analytics in an international context can lead to evidence-based decisions
that enhance organizational performance and drive business success. To further illustrate the
application of people analytics in the IHRM context, real-world examples of how some organizations
have successfully implemented this approach in their global units will be provided.

10. IHRM Success with People Analytics

Aside from Google, there are numerous organizations that have effectively adopted or are currently
implementing people analytics in their IHRM framework, providing valuable insights for other
companies who aspire to become global. Let’s have look on some of them:

10.1 Marriott: It leveraged people analytics to enhance employee contentment and mitigate the rate
of employee turnover. (Hakikat, 2015). By analyzing metrics such as employee engagement, job
satisfaction, and performance, they were able to identify the underlying reasons behind high turnover
rates. This empowered Marriott to implement specific strategies to tackle the root causes of turnover
and enhance employee retention.

10.2 Unilever: a consumer goods multinational company based in the UK and the Netherlands,
leverages people analytics to enhance employee engagement and retention. (Unilever, 2022). For
instance, Unilever applies analytics to recognize the drivers of employee turnover and then devises
specific retention tactics to tackle these issues.

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10.3 Nestle: a multinational food and beverage company based in Switzerland, leverages people
analytics to advance its diversity and inclusion goals. (Nestle, n.d.) One way they do this is by using
analytics to detect any potential gender-based salary discrepancies within their organization and
implementing measures to mitigate these disparities.

10.4 Siemens: a multinational conglomerate based in Germany, leverages people analytics to

enhance its recruitment and selection procedures. (Hakaj, 2021). Specifically, they employ analytics
to forecast the potential success of job candidates, which in turn influences their hiring decisions.

These real-world examples clearly state the impact of people analytics on IHRM. This has given
MNE a huge success in the international market as they have witnessed the importance of collecting
data relating to employees’ behaviour, habits, talents, stress management, work-life balance, etc.

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CONCLUSION
People analytics involves the collection and analysis of data related to human psychology, work
behaviour, skills, talents, and other factors that contribute to the success of an organization. This
data is then utilized to achieve various human relations objectives, such as talent management,
employee engagement, and performance optimization. Though it is a nascent and imperative tool,
but it is essential for globally active companies to meet their specific international requirements and
adapt to the local culture and practices of their diverse workforce. The use of people analytics in
HRM allows organizations to make informed decisions based on reliable data, rather than relying on
subjective opinions or guesswork. By identifying key patterns and trends in employee behaviour and
performance, organizations can proactively address issues, develop targeted training programs, and
create a more productive and engaged workforce.

Moreover, the adoption of people analytics enables organizations to remain competitive in the global
marketplace, as it provides valuable insights into the unique challenges and opportunities of different
regions and cultures. This information allows organizations to tailor their HR strategies to the specific
needs of their workforce, while also promoting a culture of inclusion and diversity. As mentioned by
Randhawa (2022), every dollar invested in people analytics results in a return of $13.01 for any
organization. MNEs have reaped significant long-term benefits from people analytics, as it has been
shown to vividly enhance the international success of organisation.

The increasing expectations of individuals in their professional lives have made the relevance of
people analytics even more significant, as it enables HR to identify changes and advancements in
employee behaviour. The challenge of cultural and linguistic diversity faced by global organizations
is effectively tackled by people analytics, which can then be incorporated into IHRM with appropriate
application and implementation in employees' work life. However, the success of this approach
requires additional creativity, mastery, and insight to tailor and modify the data according to specific
jobs and companies. Ultimately, people analytics can prove to be a valuable tool in improving the
overall productivity and success of organizations in the contemporary business world. IHRM
validates the result of people analytics as it can in a way predict a business’s international success
in future. This gives the company a competitive edge by enabling them to take pre-emptive measures
to maximize their benefits.

There is the need to constantly improve in the field of people analytics in IHRM. A lot needs to be
done, for example: data collection should be very transparent as well as anonyms. The methods
need to get a little bit more advanced and informative. Organization needs to understand that people
analytics is not an added expense, rather it will drive their future accomplishments. Businesses is all
about its employees or working capital, it is the responsibility of Human resource to aid and support
them. Through people analytics this process will just be a lot easier, efficient and effective.

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