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Impact of Data-Driven HR Analytics on Employee Performance Evaluation in IT Companies

 

 

Muskan Saxena

Research Associate

Tmimt, Teerthanker Mahaveer University Moradabad

 

 

Abstract:

In the contemporary digital era, organizations in the Information Technology (IT) sector are increasingly adopting data-driven Human Resource (HR) analytics to enhance the precision, fairness, and effectiveness of employee performance evaluation. This research examines the impact of HR analytics on performance appraisal systems and its role in supporting evidence-based decision-making within IT companies. The study explores how analytical tools and metrics are utilized to assess employee productivity, skill development, behavioral patterns, and contribution to organizational goals.

A quantitative research approach is adopted, collecting data through structured questionnaires from HR professionals and employees across leading IT firms. The findings indicate that the integration of HR analytics significantly improves the accuracy, transparency, and objectivity of performance appraisals while minimizing human bias and subjectivity. Furthermore, data-driven insights enable managers to identify high performers, forecast future potential, and align individual goals with organizational strategy. However, challenges such as data privacy, lack of analytical expertise, and employee resistance to analytics-based evaluations persist.

The study concludes that HR analytics serves as a strategic enabler for transforming traditional appraisal methods into dynamic, evidence-based systems, ultimately enhancing employee engagement, performance outcomes, and organizational competitiveness in the IT sector.

Keywords:

HR Analytics, Data-Driven Decision Making, Employee Performance Evaluation, IT Sector, Performance Appraisal, Predictive Analytics, Human Resource Management

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