A more evidence-based approach for decision making in human resource departments is currently hyped in the management literature and picked-up in the academic research literature using the terms People Analytics and HR Analytics. However, assumed advantages like nondiscriminating and objective decisions are seen more critically from a scientific point of view.
Our study analyses the risks and opportunities of People Analytics and its use of data sources and analytical approaches from an economic, legal and ethical perspective. We point out several pitfalls and obstacles which must be addressed thoughtfully before a People Analytics project is recommended. The three main obstacles in our regard are the lack of analytical skills, the reservation of data usage in workforces and legal uncertainty.