Examining the Impact of HR Analytics on Organizational Performance in the IT Sector: The Mediating Effects of Employee Job Engagement and Workforce Motivation

In today’s dynamic and competitive business environment, organizations are increasingly recognizing the importance of leveraging human resource (HR) analytics to enhance their performance and maintain a sustainable competitive advantage. This study aims to explore the impact of HR analytics on organizational performance (OP) in the IT sector, with a focus on the mediating roles of employee job engagement (EJE) and workforce motivation (WM). Drawing upon the dynamic capability view (DCV), researchers investigate how HR analytics influences EJE, WM and OP. Data were collected from 355 employees from the Indian IT sector. To validate the proposed model, partial least squares structural equation modelling was utilized using SmartPLS 4.0. The study’s results reveal significant positive relationships between HR analytics, EJE, WE, and OP. Specifically, HR analytics positively influences both EJE and WM, as well as OP. Additionally, EJE was found to have a positive effect on WM and OP. Moreover, the study identified that EJE and WM act as partial mediators in the relationship between HR analytics and OP. This study contributes to the existing literature in two significant ways. Firstly, it examines the impact of HR analytics on EJE, WM, and OP especially within the IT sector. Secondly, by highlighting the mediating roles of EJE and WM, this study provides a more comprehensive understanding of how HR analytics influences OP. This represents a novel contribution to the literature, as previous research has largely focused on the direct effects of HR analytics and organizational outcomes, without considering the mediating mechanisms through which these effects occur.