Empowering human resource functions with data-driven decision-making in start-ups: a narrative inquiry approach

Abstract

Purpose

Across industries, firms want to adopt data-driven decision-making (DDDM) in various organizational functions. Although DDDM is not a new paradigm, little is known about how to effectively implement DDDM and which problem areas to focus on in these functions. This study aims to enable start-ups to use DDDM in human resources (HR) by studying five HR domains using a narrative inquiry technique and aims to guide managers and HR practitioners in start-ups to enable data-driven decisions in HR.

Design/methodology/approach

This study adopts the narrative inquiry technique by conducting semi-structured interviews with HR practitioners and senior members handling HR functions in start-ups. Interview memos are thematically analyzed to identify repeated ideas, concepts or elements that become apparent.

Findings

The study findings indicate that start-ups need to have canned operational reports with right attributes in each of these HR domains, which members should use when performing HR tasks. Few metrics, like cost-to-hire in recruitment, distinctly surfaced relatively higher in importance that each start-up, should compute and use in decision-making.

Practical implications

Managers, HR practitioners and information technology implementation teams will be able to consume the findings to effectively design or evaluate HR processes or systems that empower decision-making in a start-up.

Originality/value

Start-ups have a fast-paced culture where creativity, relationships and nimbleness are valued. Prevalent decision models of larger organizations are not suitable in start-ups’ environments. This study, being cognizant of these nuances, takes a fresh approach to guide start-ups adopt DDDM in HR and identify key problem areas where decision-making should be enabled through data.

Citation

Varma, D. and Dutta, P. (2023), "Empowering human resource functions with data-driven decision-making in start-ups: a narrative inquiry approach", International Journal of Organizational Analysis, Vol. 31 No. 4, pp. 945-958. https://doi.org/10.1108/IJOA-08-2021-2888