WHAT IS HUMAN CAPITAL ANALYTICS ?

 


Introduction

Human capital analytics, which makes use of data analytics and metrics to better understand and manage the value of a company's human capital, is one of the newest ideas in HRM. This idea has becoming more prevalent as businesses realize how crucial their workforce is to maintaining a competitive edge in today's global economy.

 

With the use of human capital analytics, businesses can assess the performance and potential of their staff, spot skill gaps and training requirements, and create plans for luring, keeping, and inspiring top talent. This data-driven approach to HRM aids businesses in making wiser decisions about their investments in human capital and boosts organizational performance. 

Analyzing the value of human capital,  the skills, knowledge, and experience of people, in order to comprehend how it affects an organization's performance is known as human capital analytics. There are many benefits of using human capital analytics, as described below.

 



1.      Increasing employee recruitment and retention: Human capital analytics aids businesses in determining the best strategies for luring and keeping workers. Organizations may enhance their recruitment and retention strategies by examining data on employee turnover and job satisfaction. Bersin ( 2017)

 




2. Improving productivity: By examining data on employee performance, skill gaps, and training requirements, human capital analytics enables firms to pinpoint areas where productivity can be increased. Organizations can create training and development programs to increase productivity by recognizing these areas. Huselid and Becker (2011)

 



3. Making better decisions Organizations can use human capital analytics to gain insightful knowledge about their personnel and make informed decisions. Organizations may decide wisely regarding promotions, pay raises, and other workforce-related issues by examining data on employee performance and engagement. Collins et al. (2019)




4.  Risk reduction: Human capital analytics assists businesses in identifying and reducing workforce-related risks, such as the risk of employee churn and the risk of a skills gap. Organizations can reduce these risks by examining data on staff turnover and skills gaps. SHRM (2019)



Overall, human capital analytics offers firms a number of benefits, from increased hiring and retention to risk reduction. Employers can use data on their staff to guide decisions that are key to their success.

 

References :

Sumith, J. R. (2018). Human capital analytics: The newest idea in HRM : McGraw-Hill Education. New York.

Cascio, W. F, (2018) Applied Psychology in human resource management (8th ed.) New York: Pearson (Book)

Bersin, J. (2017). High-impact people analytics: A primer. Harvard Business Review, 95(6), 52-61. Available at : https://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-human-capital-bersin-lt-people-analytics-solutions-market-primer.pdf [Accessed 04th April 2023]

Collins, C. J., Smith, K. G., & Hunt, J. G. (2019). Human capital analytics: Why and how to start small. Business Horizons, 62(1), 45-54

Huselid, M. A., & Becker, B. E. (2011). Bridging micro and macro domains: Workforce differentiation and strategic human resource management.Journal of Management, 37(2) , 421-428.


Source :

https://youtu.be/B4EqhvSuv4o

Comments

  1. Lalindu WijesingheApril 7, 2023 at 12:31 AM

    Human capital analytics is a critical tool that helps organizations make data-driven decisions about their workforce. By analyzing employee data such as performance, skills, and engagement, businesses can identify areas for improvement and make strategic investments in their workforce. This can lead to increased productivity, higher employee satisfaction, and ultimately, better business outcomes.

    ReplyDelete
  2. Tharanga WanigasundaraApril 7, 2023 at 3:03 AM

    In short, human capital analysis helps companies to better understand and leverage their employees as a critical resource for achieving their business goals. Well done.

    ReplyDelete
  3. Gayantha CostaApril 17, 2023 at 7:31 PM

    Human capital is a very important and major part of any organization which refers to the knowledge, skills, abilities, and other intangible assets that individuals possess and can contribute to the success of an organization. It represents the value that employees bring to an organization, and it can be a critical source of competitive advantage. Many methods can be used in analyzing human capital like competency assessment, performance appraisal, succession planning, etc. The benefits of human capital analysis discuss with the author's definitions in this article. Excellent work with an important topic. Good luck.

    ReplyDelete
  4. Dhanushka Jayanath April 19, 2023 at 11:46 AM

    This concept has gained in popularity as companies realize how important their personnel is to preserve a competitive edge in today's global market. excellent work,

    ReplyDelete
  5. W.J. Chrishan Fernando.April 20, 2023 at 6:21 PM

    This article provides a clear explanation of what human capital analytics is and how it can benefit organizations. By leveraging data analytics and metrics, businesses can gain insights into their workforce's performance, potential, and skill gaps, enabling them to make informed decisions on recruitment, retention, and training. The article highlights the advantages of using human capital analytics, such as improving productivity, reducing risks, and making better decisions. It's encouraging to see how data-driven approaches can enhance HRM and organizational performance, and this article offers a great introduction to the topic. Well done ..!!

    ReplyDelete
  6. Saraj KahingalaApril 22, 2023 at 6:52 AM

    A strong performance management program must include timely and effective feedback, which should be used in combination with performance targets. Employee performance will increase if proper feedback is provided to staff regarding their progress toward their objectives. Excellent work.

    ReplyDelete

Post a Comment

Popular posts from this blog

Image
  What is a toxic work environment? Introduction When the tasks, coworkers, and atmosphere cause conflicts in your life, the workplace is deemed toxic. These disruptions could have a negative impact on your physical health and cause symptoms including restless sleep, constant awareness, sweaty hands, and a beating heart. Underappreciation, partiality, unhealthful communication, gossiping, and frequent turnover are a few elements that contribute to a burnout work culture. Toxic workplace practices also include ineffective management, a loose code of conduct, poor leadership, and a lack of communication. These problems are undoubtedly present every day in a hostile job. It may result in issues, conflicts, low morale, excessive stress, subpar results, illness, high staff turnover, and even abusive behavior on the part of employees. Conflict develops in a toxic environment when productivity is also negatively impacted. A toxic organization, as used in this article, is one in which ...
Read more
Image
  The Barriers to Increasing the Productivity in Expatriate Management                                                                                      Figure 01 Introduction In fact, "it has been argued that entrepreneurs have recognized the importance of physically relocating managers who are highly skilled to foreign locations where business is taking place." For multinational enterprises that prioritize international trade, having human resources who are mobile and who can carry out such activities is one of the remarkable issues that is as significant as completing successful cross-border operations. (Collingns et al., 2007). But according to Salleh and Koh (2013), "it has been one of the most significant competitive advantages since more than two decades ...
Read more
Image
  What is Agile Human Resource Management ?                                                   Figure 01 Introduction For many years, both industry and academia have focused heavily on the issue of how companies can effectively deal with the volatility, uncertainty, complexity, and ambiguity of today's environments (the "VUCA world"). Although agility is seen as a trendy management concept, it has existed for a long time. Despite having a history that extends back to the 1920s, it only really came to light in the 1960s when some experts created theories on how organizations would handle the more unpredictable world. The word "agility" was coined in the 1990s by academics at Pennsylvania's Lehigh University. Aiming initially at agile production, supply chain management, software development, production economics, and information technolo...
Read more