Data-Driven StrategicWorkforce Planning in UK SMEs: A Comparative Analysis

Amidst escalating digital competition, small and medium-sized enterprises (SMEs) face a vital need to strategically manage human resource management (HRM) for sustainable growth. The adoption of data-driven strategic workforce planning is crucial for SMEs, facilitating informed decisions that enhance operational efficiency. Drawing from secondary data obtained through a governmental survey involving over 2000 SMEs across various sectors in the UK, this study endeavors to deepen our comprehension of the determinants and challenges associated with the adoption of data-driven workforce planning (DDWP) in SMEs and its consequential impact on organizational performance. The study endeavors to construct a framework anchored in the technology-organization-environment (TOE) model, subsequently validating this framework across three prominent industries within the UK SME landscape to substantiate hypotheses derived from the extant literature. The discussion encompasses an exploration of the challenges inherent in implementing DDWP within SMEs, followed by an assessment of how these challenges influence the adoption of DDWP. Subsequently, the study delves into an evaluation of the impact of DDWP on performance, concluding with an examination of the framework's applicability across industries. The results illuminate that drivers influencing the level of adoption of DDWP in SMEs similarly impact selected industries. Moreover, the findings underscore that the level of adoption of DDWP exerts a palpable impact on organizational performance, enhancing overall business efficiency. The outcomes of this study furnish valuable insights and practical recommendations for HR professionals, policymakers, and researchers, delineating strategies to elevate business performance and efficiency through the transformation of workforce planning into data-driven workforce planning.