What Is Evidence-Based HR? Examples, Benefits, and Process for HR Leaders

Organizations increasingly utilize data to make decisions that ultimately impact their bottom line. This has prompted the transition from unreliable fads, outdated wisdom, and short-term fixes toward an evidence-based approach to HR, which critically evaluates evidence from multiple sources.

In this article, we’ll explore how evidence-based HR benefits organizations, potential sources of data, and how you can cultivate an evidence-based HR approach in your team. 

Contents
What is evidence-based HR?
Examples of evidence-based practice in HR
Benefits of evidence-based HR
Obstacles to practicing evidence-based HR
Sources of data for evidence-based HR
Steps to making an evidence-based HR decision
How to cultivate an evidence-based HR approach within your team

What is evidence-based HR?

Evidence-based HR (EBHR) is the practice of making people-related decisions based on the best available evidence from data, research, professional expertise, and stakeholder input. It emphasizes critical thinking and combines these sources to assess what works, what doesn’t, and why, supporting more informed and effective HR actions.

Evidence typically comes from the following sources:

• Available internal data
• Research findings and empirical studies
• Expert judgment and real experience
• Values and concerns.

This method shifts away from basing HR management decisions on trends, biases, quick fixes, or word-of-mouth success stories.

The evidence-based approach was pioneered in the field of medicine. Medical practitioners started relying on relevant evidence to enhance their expertise for added certainty in their clinical decision-making. This resulted in more effective healthcare. Evidence-based practice has spread into many other disciplines, such as education and public policy, with HR joining in as well.

Examples of evidence-based practice in HR

Want to see what evidence-based HR management looks like in practice? 

Here is one hypothetical illustration:

An organization’s leadership has asked HR to address the problem of high absenteeism. Instead of just suggesting an anecdotal method you recently read about, you would start with some research. Were there any previous initiatives to manage absence rates, and if so, what was the impact?

It transpires that some managers had sporadically followed up with employees when they came back to work, but it wasn’t consistent enough to affect the absence rate. You find credible sources on how to conduct successful return-to-work interviews and take on the responsibility of a trial program, tracking the feedback.

The next step is to compare that data with the previous absence rates, and a slight reduction in the absence rate surfaces. Managers are then trained to conduct these interviews more consistently and effectively. HR continues to review that data for absence patterns and alerts managers to the trigger points that seem to precede employee absences.

Now, let’s explore some real-life examples of how organizations have used evidence-based practice in HR.

Example 1: PNC Bank – Strengthening incentive strategies through evidence-based HR

PNC Bank’s HR team applied an evidence-based approach to better understand the risks associated with its numerous incentive plans. Rather than relying on assumptions or gut reactions, like simply removing bonuses, they gathered and analyzed data across the talent life cycle to understand where and why certain roles might be more vulnerable to compliance issues or pressure-driven behavior. This allowed them to maintain performance incentives while addressing the underlying risks in a more precise, informed way.

Example 2: City of New York – Investing in incentive payments for teachers

The city of New York invested $75 million in incentive payments for teachers in 2007. The assumption was that it would motivate teachers to be more satisfied and productive and lead to improvement in their students’ performance. However, the program did not impact how the teachers performed or student achievement. If school officials had done some research, they might have found evidence that this approach was unlikely to deliver their presumed results and saved a lot of money.

Example 3: Thales – Retaining talent on long-term projects

Thales, an aerospace and defence technology corporation, manages large mega-programs that often span over a decade, making key employee retention challenging. Traditionally, the company offered financial incentives, but this approach’s effectiveness was unclear.

Thales used an EBHR approach to identify solutions. From the evidence gathered, they found that financial incentives were probably only effective for a minority of employees, therefore resulting in a poor return on investment. The evidence also suggested that interventions that focused on intrinsic motivation could be more effective and cost-efficient. 

The organization developed a tool to enable managers to assess if key employees perceived their work as providing an environment that facilitates intrinsic motivation, the extent to which various aspects of this motivation were present, and what could be done to enhance them. In case of deficits, the tool offered solutions to improving employees’ work experience to boost intrinsic motivation and, consequently, retention. 

Example 4: FCA – Analyzing diversity, equity & inclusion data to inform strategy and action

With ambitious DEI targets, the Financial Conduct Authority (FCA), a financial regulatory body in the U.K., chose to take an evidence-based approach to review its internal DEI work, identify and understand the most urgent DEI issues, and develop strategies to address them.

The organization gathered relevant internal evidence, qualitative data from stakeholders, professional expertise from various groups, and scientific findings, and applied a clear rating scale to evaluate the quality of each source. This helped the team prioritize more urgent areas, and the FCA was then able to group evidence into themes and sub-themes. They used the available evidence to design and select interventions most likely to have significant impacts. 

Senior stakeholders were engaged from the start of the process, and the evidence and decisions were presented to them to ensure they were partners in the process.

Benefits of evidence-based HR

When HR adopts an evidence-based mindset, it can influence operations and strategy and better support company goals. Here are some of the key benefits: 

• Align HR practices with strategic organizational goals: An organization’s most important asset is its workforce, which can have a direct impact on the organization’s business performance and bottom line. Using an evidence-based approach, HR can, for example, balance the amount of compensation offered with the organization’s existing resources or decide on the number of new employees it needs to hire to help the organization expand further.
• Systematic and consistent decision-making that generates effective interventions: Evidence can be used to better understand and address employees’ needs, including increasing satisfaction, engagement, productivity, and retention. For instance, by utilizing hiring data, HR professionals can help their organizations increase recruiting efficiency by 80% and decrease attrition rates up to 50%. 
• Reduce speculation, uncertainty, and errors in judgment: Every professional, no matter how senior or experienced, will always have biases. The presence of data and evidence in people management and HR decision-making helps to reduce those biases and allows the team to make judgements based on a shared objective reality instead of just gut instinct.
• Improve credibility and stature of the HR profession: Gone are the days when HR is seen as merely an administrative team with no real strategic value. By utilizing a data-driven approach to an organization’s people issues and applying HR best practices, HR can directly contribute to increasing the business’s bottom line and realizing business goals.
• Ensure solid risk management: Using evidence lowers an organization’s risk of non-compliance, legal problems, and ethical breaches, which helps protect a company’s reputation and avoid financial penalties. 
• Long-term organizational success: With data, HR teams can understand what has gone wrong in the past and gain insight into what might happen in the future. This foresight enables HR to make decisions and plan accordingly to ensure the organization thrives today and is well-prepared to tackle future challenges.

Obstacles to practicing evidence-based HR

It’s common for there to be challenges for your HR team to overcome when adopting a new way of working. When trying to promote evidence-based HRM, here are some common hurdles you may face:

• Resistance to change: Many people are skeptical about new methods and resist leaving their comfort zones. They might also fear that a new approach will reveal flaws in current practices that reflect poorly on their efforts. Consequently, it can be challenging to convince them that it’s safe to move beyond “the way things have always been done.” 
• Low data literacy: HR practitioners might lack the knowledge and skills needed to read and interpret workforce data and other figures and translate them into action. They may also be apprehensive about learning what they need to know.
• Lack of access to data: If HR does not have essential company data at its disposal, it hampers the effort to make evidence-based decisions. HR needs access to the right data sources from the different functions of the organization. 
• Perceived time issues: Decisions often need to be made quickly, and gathering and analyzing data might be seen as time-consuming. However, the reduction of errors and improved efficiency outweigh this.
• Misconception that EBHR is the same as people analytics: Evidence-based HR differs from people analytics in that it’s a more comprehensive approach that incorporates evidence beyond just data. This gives business leaders a holistic view when making key decisions. 

Sources of data for evidence-based HR

Evidence-based HR professionals must consider data from a variety of sources and confirm that it’s applicable within the context of each situation. The following four tools are the main sources HR professionals should consider for evidence-based practices. They are equally significant; however, you may find that some are more readily available and better suited than others for the area you are focusing on.

Scientific research/literature and empirical studies

HR should critically evaluate the best published scientific research because it is objective, dependable, and provides a general idea of the current studies in a specific area. 

High-quality academic research is intended to be accessible to the public. Although it may seem intimidating to read and attempt to interpret scholarly research, readers without a technical background can understand most articles.

Scientific research results can support HR decisions with all kinds of data, such as: 

• Common factors that cause employees to leave
• Recruitment methods that successfully predict strong performance 
• Average absence rates in other similar jobs/industries.

Choose sources that offer validated research from credible experts, but don’t default to just one or two. In fact, comparing insights from multiple sources gives you a better assessment. Such references can include:

• Management journals (e.g., Harvard Business Review) 
• Academic journals and publications (you can search for them with Google Scholar)
• Professional advisory networks (e.g., Deloitte or Gartner)
• Human Resources research and development groups (e.g., SHRM).

This type of evidence is very valuable and should be considered when making decisions. That being said, what you learn is not always guaranteed to lead to success. Evidence is simply one means of weighing the likelihood that a particular solution will be effective before you put it into action.

Internal company data

Today, organizations consistently collect a wide variety of data. Drawing the relevant raw information from this pool supplements your scientific research with useful evidence that suits the context, and vice versa.

HR data sources include data from HR systems (from your HRIS, ATS, and LMS), other HR data (that isn’t in the HRIS), and other business data (from Finance, Sales, Operations, and customer feedback).

You can look through the numbers, such as productivity, retention, and turnover rates. Carefully reviewing current and past employee satisfaction surveys can help you understand how the work environment, company culture, and leadership are perceived. You can also review internal precedents and start asking questions. What approaches or initiatives have worked in the past? And, on the contrary, which ones failed?

Comparing the different types of internal business and people data can help you get to the root of problems and provide insight into potential solutions. 

Professional expertise and judgment of practitioners

Individuals with specialized education or professional experience have accrued tacit knowledge that gives them good judgment when reflecting on a situation. Such people include business leaders, HR executives, managers, and consultants. Their expertise allows them to offer not just an opinion but input based on lessons learned from processes or outcomes played out over a history of repeated similar circumstances. Evidence from practitioners can be acquired through face-to-face conversations, more structured group meetings or workshops, or surveys. 

You can expand on your research and data with these individuals who offer a vital contribution. They can help you decide if the research directly applies to the situation, if your data is reliable, and whether a proposed solution is likely to be successful. 

Do keep in mind that personal experience can also come with a personal bias. Be aware of how someone might have a particular agenda to push or something they’re trying to sell. This is why professional expertise should always be assessed alongside other sources of evidence. 

Stakeholder values and concerns

Too often, business decisions are made without consideration for the varying perspectives of all the groups or individuals that will be affected. When operating under evidence-based methods, HR must engage with those involved to gain an appreciation for their expectations and concerns. 

The decisions or their consequences likely affect some of the following key stakeholders:

• Employees
• Managers
• Applicants
• Customers
• Board members
• Shareholders.

Collaborating with stakeholders to gather input is not only courteous, but it also provides more influence to expand your frame of reference. In other words, taking into account the scope of what is important to stakeholders may lead you to a different conclusion. This can also result in an improved perception and reception of the decision.

Steps to making an evidence-based HR decision

Here are six steps that will guide you through the evidence-based HR decision-making process:

1. Identify the problem and pose an answerable question

Often, the presented problem that has surfaced merely indicates that there is a deeper underlying matter that you need to uncover. Spending time asking yourself what is at the heart of the issue will uncover the root problem that you need to address. This is an excellent time to get input from others to learn if they see the same nature of the problem. 

Once you have identified the business challenge that you want to address, explain it in the form of a question. For example, what responsibility does our organization hold as an employer in the increasing employee absence rate?

This will help you form better hypotheses toward the right solution.

2. Develop hypotheses

Start brainstorming why the problem/issue has occurred and what the potential solutions to the problem can be. Again, this should not be left up to one person, so get colleagues, managers, and employees involved. 

At this stage, come up with plausible reasons for the problem and possible remedies. For example, your hypothesis could be: A lack of employee engagement is affecting the absence rate. Improving employee engagement will motivate people to be at work.

3. Gather data

Using the four types of data sources listed above, search methodically for a range of evidence that will help you prove or disprove your hypotheses. Inventory your internal data to see if it can serve your purpose, and find diverse external sources for a variety of unbiased input.

4. Analyze data and aggregate evidence

Pull together all the data and evidence you have collected, so you can identify what you have and may still need. Be sure to consider all angles rather than only what proves your theory. Your findings may prompt you to fine-tune your original hypothesis. 

Examine the evidence critically to weigh its reliability and relevance to the situation:

• Is this the best of the available information?
• Is it biased in any way?
• Does it support the hypothesis adequately?
• Does it justify the proposed solution?

Be aware of any partiality that lurks in the evidence because it can affect the outcome. The professional expertise sources are the most disposed to holding a bias, so you should consider the following: 

• Is the situation in the evidence a similar environment to ours?
• How frequently has this person encountered this particular issue?
• Did they have a clear view of how the situation actually turned out?

5. Apply the evidence

Now it’s time to analyze what the evidence is implying about your hypothesis and turn it into action. 

Consider the following questions:

• What is it telling you to do, and how will you execute the solution? 
• Is the specific intervention in question the most effective option, or are others more effective? 
• If there are risks involved in the final decision, are they worth the potential benefits?
• Do the projected costs, resources, and timeline fit with the needs of your organization? 

Move into the implementation phase with confidence and provide the necessary tools or training to those who will be affected.  

6. Assess the outcome

The final phase of evidence-based decision-making is evaluating its outcome against your expectations. 

What has your decision resulted in? 

Gather feedback to see how it has performed and how different stakeholders have received it. Furthermore, understanding whether the action panned out the way the evidence indicated can help shape the future business strategy.

How to cultivate an evidence-based HR approach within your team

Here are some tips to help you cultivate evidence-based HR within your team. 

• Develop data literacy: Ensure your HR team members are trained in data analysis, critical thinking, and research methods so they possess the skills required to analyze and apply evidence throughout their decision-making process. 
• Make data easy to access and use: Trial various HR technologies to find the most efficient way to gather, analyze, and report the right data, making it more accessible to all HR professionals. 
• Build a digital library: Create a central database to store and share any relevant HR research, case studies, and data insights, and encourage your team to familiarize themselves with it and add to it. 
• Ask for the ‘why’ and the ‘how do we know’ in team discussions: Cultivate an environment where gut feelings and existing practices are questioned, and HR professionals are encouraged to base statements on evidence.  
• Bring research into regular conversation: Use relevant scientific research and theories to inform HR practices and be forthcoming in sharing these in discussions and meetings with team members to normalize the use of research to support statements. 
• Encourage cross-functional collaboration: Develop lines for clear and open communication between departments and all levels of the business to improve the gathering of diverse insights and feedback. Partnerships with IT and Finance can be particularly helpful in creating a wider view and enriching evidence. 
• Ask HR professionals to be mindful of applying AI tools to data: Although modern AI tools are being utilized more frequently to help aggregate and extract information from data, they should not be relied upon at face value. HR practitioners should assess responses and check the sources for accuracy to ensure data credibility. 

Is your team ready for the evidence-based HR approach? The checklist below will help you find out what you need to prepare for and uncover gaps in readiness.

Carrying it forward

Evidence-based HR helps organizations utilize large data sets to make better decisions, increase operational efficiency, and attract and retain top talent, leading to long-term organizational success. HR leaders have a responsibility to cultivate evidence-based HR within their team by investing in the right technology and training, and encouraging people to stay curious and skeptical.

Start small by introducing evidence-based practices in small projects before extending them out to the entire company, reflect on what worked (and what didn’t), and adapt accordingly.