Closing Demographic Pay Gaps with Analytics

Information Systems and Operations Management

Speaker: Margret Vilborg Bjarndóttir (Robert H. Smith School of Business, University of Maryland)

Room Bernard Ramanantsoa

People analytics, the application of scientific and statistical methods to behavioral data, traces its origins to Frederick Winslow Taylor’s classic The Principles of Scientific Management in 1911, which sought to apply engineering methods to the management of people. But it was not until a century later after advances in computer power, statistical methods, and especially artificial intelligence (AI), that the field truly exploded in the power, depth, and widespread application, especially, but not only, in Human Resources (HR) management. By automating the collection and analysis of large datasets, AI and other analytics tools offer the promise of improving every phase of the HR pipeline. Algorithms are being used to help managers measure productivity and make important personnel decisions, such as hiring, compensation, promotion, and training opportunities — all of which may be life-changing for employees. Unfortunately there are many pitfalls along the way. In this talk we will highlight some of the challenges of People Analytics through examples and then focus on  how innovative use of algorithms and optimization can be used to support pay equity and discuss some of the implications.