Evidence use in HR decision-making
After decades of research on the contribution of HRM to key issues such as employee motivation, performance, retention and well-being, the conclusion could be made that HRM expertise matters for organisations.
Evidence-based HRM advocates that effective decisions depend on a decision procedure involving evidence. It starts with people professionals identifying what purpose an HR practice should serve, collecting evidence about the problem and potential HR interventions, and a critical appraisal of all evidence as well as the interests of those targeted HR practices before deciding and implementing it.
Evidence-based HRM discerns evidence that exists in the organisation context itself, for instance in the form of HR data and input from employees, and external evidence in the form of expert knowledge and research evidence. As each source of evidence has its merit and limitations, people professionals should carefully weigh the value of each part of the evidence before reaching a conclusion.
While evidence-based HR decision-making may sound time consuming, in the light of costs associated with non-effective decisions, a small-time investment before taking a decision may actually save costs. Non-effective quick fixes lead to frustration, feed organisational politics and require new decisions to make up for the damage done. This is more expensive than taking a little time before jumping to a solution.
Unfortunately, HR decisions can be prone to quick fixes. A common example is the reliance on intuition in unstructured selection interviews, that make selection decisions no more predictive than chance. Simple improvements, eg asking all candidates the same job-related questions as compared to an unstructured interview, can improve selection effectiveness by 30-50%. People professionals can benefit from such insights from the HR evidence base to make a business case for effective HR policy and practice.
Navigating the evidence base
Busy people professionals would benefit from quick access to the HR evidence base, just like GPs who can rely on libraries with systematic reviews about the best evidenced treatment for illnesses.
The Campbell Collaboration initiative hosts a library of research evidence that looks at, amongst other research areas, management research. For quick reference, an introduction to the HR evidence base is provided in the book Evidence Based HRM: What we know about people in workplaces, which guides people professionals in navigating the HR evidence base by mapping the foundational research domains in the HR field. The book covers the HR evidence base in three sections: the HR business case, the context of HR, and the employee perspective.
Awareness of evidence
There are many unfounded beliefs about effective people management, even among people professionals. To name a few common beliefs that are rejected by research evidence: functional conflict is productive for team performance (it's not), it's possible to select on motivation to predict a candidate’s future performance (motivation is contextual, selecting on it's unreliable).
The evidence in chapter two of Evidence Based HRM: What we know about people in workplaces guides us to three evidenced pillars that make up the ‘human resource’ that contribute to organisational performance: human capital, social capital, and motivation. Human capital is the sum of all knowledge and skills present in the organisation. The evidence base on investing in human capital comes from psychological research on individual differences, and from economical research on the value of investing in education and experience.
There is overwhelming evidence that a combination of two individual differences matters the most for overall individual performance in any job: intelligence and conscientiousness. Intelligence concerns the individual potential to process information quickly and learn new things, and conscientiousness is the personality trait indicating a preference to work in a way that is goal-oriented, industrious and precise.
Together these individual characteristics drive the best performance on any job level. In addition, investing in knowledge pays off for both individuals and organisations. There is a clear connection between investments in education and objective career success for individuals (salary, job level, etc.).
For organisations, the sum of all experience makes a difference for organisational performance. For example, on average, management boards with more total years of experience outperform those with fewer years of experience.
Social capital can be seen as the cement that drives interactions within the organisation, as well as between the organisation and clients, suppliers and knowledge institutions. Social capital brings goodwill, collaborations, and facilitates access to knowledge. HR structures that facilitate collaborations (eg teamwork, cross departmental collaborations), as well as investing in a safe working climate and positive social cohesion can help to achieve positive outcomes.
Finally, acknowledging that work relationships are not solely economic exchanges where employees exchange their time and effort for a salary, but are social relationships where individuals hold expectations about fair treatment and social appraisal to balance their investments at work is crucial. Looking at the evidence base on exchange-based employment relations research, it’s clear that the most motivating rewards packages combine both extrinsic and intrinsic incentives.
Managing change
In chapter 4 of Evidence Based HRM: What we know about people in workplaces, the focus is on managing change. While, for a long time, change management wisdom held that you must carefully plan for change before, during and after, the evidence base tells us that, in reality, few planned change initiatives deliver their original goals.
Gradually, the evidence base shifted from planned change to investing in dynamic capabilities, which offers the potential in organisations to adapt and grasp opportunities as they come along. This is especially true for HR policies that are aimed at qualitative flexibility (eg multiskilling, training), knowledge sharing and implementing incremental innovations prove beneficial to organisational performance.
Applying the evidence base to HR policy
One issue with the evidence base for HR is that research findings seldomly dictate a single solution. Additional sources of evidence from the organisation are essential to decide on a policy that will be effective in the context of the organisation.
In the case of improving selection procedures, there are multiple effective ways to assess individual differences such as structured interviews, work samples, tests. Whichever practice is the most efficient depends on the understanding of the organisational context. People professionals have a responsibility to gather and critically appraise all evidence before reaching a conclusion.
People professionals should use evidence
Positioned across departments and often serving as trusted advisors, people professionals are uniquely suited to enhance decision making in organisations. They should always ask critical questions about quick fixes and ready-made consulting solutions. To strengthen evidence use, people professionals must invest in their own expertise and that of others, ensuring evidence use is understood and applied.
HR can facilitate the use of evidence, by organising reliable HR data and by sharing insights from the evidence base. They can also share their knowledge and foster a culture of reflection and learning by leading by example. Through these efforts, people professionals support the organisation’s capacity to make informed, effective decisions and avoid quick fixes not only in the HR domain but management in general.
Making better decisions
Evidence-based HRM emphasises choosing solutions that are both scientifically validated and contextually appropriate, helping people professionals make better, more responsible decisions tailored to their organisations’ needs. Better, more effective HR policy starts with determining a goal and collecting evidence from the organisation and from the research evidence base, before rushing in with a decision.
With initiatives like the Campbell Collaboration and Evidence Based HRM: What we know about people in workplaces, it becomes easier for people professionals to access and use the HR research evidence base. With these resources, people professionals will be able to show the value of investing in HRM to organisations.
