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The New HR Analytics: Predicting the Economic Value of Your Company's Human Capital Investments

A guide for transforming Human Resources from a reactive cost center into a strategic, value-creating partner by applying a four-phase predictive analytics model (HCM:21) to manage human capital and forecast business outcomes.

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What it’s about

In a business world defined by volatility and intense competition, managing your organization's most valuable asset—its people—with outdated methods is a recipe for failure. 'The New HR Analytics' provides a disruptive and practical roadmap for moving beyond traditional, backward-looking HR metrics. Author Jac Fitz-enz, the pioneer of human capital measurement, introduces HCM:21®, a groundbreaking four-phase predictive management system: Scan the market, Plan for future capability (not just fill jobs), Produce value through optimized HR processes, and Predict business outcomes using a powerful trifecta of strategic, operational, and leading indicators. This book is an essential toolkit for any leader, HR professional, or manager who wants to stop guessing, start predicting, and finally prove the direct link between smart people-investments and the bottom line.

The through-line

Who it’s for
The reader is an ambitious HR professional, line manager, or business executive who feels their organization's approach to people management is outdated and reactive. They want to transform HR into a strategic powerhouse that earns a seat at the table by demonstrating tangible, bottom-line value, but they lack a clear framework and the right language to do so.
The problem
The HR function is perceived as a disconnected administrative cost center, constantly forced to justify its existence with anecdotes while its budget is the first to be cut. Its initiatives are seen as intrusive chores rather than value-adding services, and it remains perpetually behind the curve of business needs. The reader feels frustrated, undervalued, and anxious about their function's relevance. They are drowning in data but starving for insight, unable to connect their daily activities to the strategic goals of the company.
The plan
  1. Phase 1: Scan your environment by analyzing the external forces and internal factors that impact your human, structural, and relational capital.
  2. Phase 2: Plan for the future by shifting from reactive 'gap-filling' to proactive 'capability planning' using skills segmentation and scenario analysis.
  3. Phase 3: Produce value by analyzing and optimizing HR services as integrated processes with measurable inputs, throughputs, and outputs.
  4. Phase 4: Predict outcomes by implementing an integrated three-point measurement system that turns historical data and leading indicators into predictive business intelligence.
The payoff
You become a respected strategic partner who makes data-driven decisions and communicates value in clear business terms. · Your HR function demonstrates a clear ROI, directly contributing to productivity, profitability, and sustainable competitive advantage. · Your organization becomes more agile, better at managing risk, and more effective at deploying its talent to win in the marketplace.

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Additional reading

  • The ROI of Human Capital · Jac Fitz-enz

    The author's previous award-winning book, which laid the foundational methodology for measuring the bottom-line contributions of employees and set the stage for the predictive analytics model in this book.

  • Competing on Analytics: The New Science of Winning · Thomas H. Davenport and Jeanne G. Harris

    Referenced in a contributor's essay, this book contextualizes the broader business trend of using analytics for competitive advantage, which this book applies specifically to the human capital domain.

  • The Workforce Scorecard: Managing Human Capital to Execute Strategy · Mark A. Huselid, Brian E. Becker, and Richard W. Beatty

    This book, referenced by contributors, offers a complementary framework for linking people, strategy, and performance, reinforcing the core themes of aligning HR with business execution.

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