Human capital analytics: the winding road

The purpose of this paper is to explore the question: human capital analytics (HR analytics) – are we there yet? It will seek to clarify what is meant by “being there yet” and it will argue that the most positive proponents for this field are way too optimistic about the current state and what impact it will have on HR in the short-to-medium term but that the long-term outlook remain positive for the field.

This is a viewpoint paper and the conclusions draw upon the author’s experience in the field.

It has been widely acknowledged that HR analytics is still a fairly immature field and has not yet reached its full potential. In this viewpoint, the author argues that the most positive proponents for this field are way too optimistic about the current state and what impact it will have on HR in the short-to-medium term but that the long-term outlook remains positive for the field. The author names four main reasons why HR analytics is still in its infancy: maturity, mindset, organization and competencies.

If these four aspects are addressed, the HR analytics function will be able to contribute much more to HR’s role as a value generator.

Focusing on these aspects will set HR analytics up for success and will lead to potentially large shareholder value creation.