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3CO02 Principles of Analytics explores how people professionals make both simple and complex decisions in their roles. It emphasises the importance of using a wide range of evidence and analytics to support sound judgement, improve working practices, and make better decisions in different situations to create value.

AC 1.1 Explain what evidence-based practice is and provide two examples of how Company X could apply it.

Evidence-based practice (EBP) is a decision-making approach that integrates the best available research evidence, professional expertise, organisational data, and stakeholder perspectives to inform workplace decisions (CIPD, 2023a). Rather than relying on intuition, anecdotal experience, or popular management trends, EBP requires practitioners to critically evaluate multiple sources of evidence before arriving at conclusions. Barends and Rousseau (2023) emphasise that EBP draws on four key sources: scientific literature, organisational internal data, practitioner professional judgement, and the values and concerns of those affected by the decision. This approach ensures that people management decisions are robust, defensible, and more likely to achieve their intended outcomes.

For Company X, adopting evidence-based practice is essential as the organisation seeks to strengthen its people management capabilities and build credibility with its client base. By grounding decisions in verifiable evidence, Company X can move beyond reactive problem-solving towards proactive, strategic workforce planning (Rousseau and Barends, 2022).

Example 1: Redesigning the Recruitment Process

Company X could apply EBP when reviewing and improving its recruitment procedures. Currently, the organisation may rely on unstructured interviews and subjective hiring manager preferences. By examining peer-reviewed research on structured interview techniques and predictive validity of various selection methods, Company X could redesign its recruitment approach. For instance, Schmidt and Hunter’s well-established meta-analytic research, as updated and reaffirmed in recent literature (Sackett et al., 2022), demonstrates that structured interviews combined with cognitive ability assessments yield significantly better hiring outcomes than unstructured methods. Company X could supplement this external evidence by analysing its own internal data on new-hire retention rates, time-to-competency metrics, and hiring manager feedback to build a comprehensive, evidence-informed recruitment framework.

Example 2: Addressing Employee Turnover A second application of EBP at Company X would involve investigating the root causes of employee turnover among its outsourced workforce. Rather than assuming turnover is caused by pay dissatisfaction alone, Company X could adopt a rigorous evidence-based approach. This would involve collecting quantitative data from exit surveys, analysing turnover patterns across different client sites, reviewing academic research on retention drivers in the outsourcing sector, and conducting focus groups with current employees. Research by Rubenstein

ein et al. (2021) identifies that turnover is a multifactorial phenomenon influenced by job satisfaction, perceived organisational support, career development opportunities, and line manager relationships. By triangulating these multiple evidence sources, Company X would be better positioned to design targeted, cost-effective retention interventions rather than applying blanket salary increases that may not address the underlying issues. AC 1.2 Explain the importance of using data at Company X to accurately determine problems and issues. The effective use of data is fundamental to accurately identifying, understanding, and resolving organisational problems. In the context of Company X, which provides outsourced HR and people management services to multiple clients, the stakes of misdiagnosing problems are particularly high, as errors in analysis can erode client confidence and result in contractual penalties. Data provides objectivity where subjective perceptions might otherwise mislead decision-makers. As the CIPD (2024) highlights, people analytics enables organisations to shift from opinion-based discussions to evidence-informed dialogue, helping to depersonalise sensitive workforce issues. For Company X, this is critical when advising clients on matters such as absence management, disciplinary patterns, or workforce productivity, where emotionally charged assumptions can lead to ineffective or legally problematic interventions. Furthermore, data enables patter...

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