Humanizing Human Capital

An organization’s success depends on its workers – and data analytics shows how investments in workers build the bottom line.

Two fields of data analytics are emerging that demonstrate the value of workers to their organizations and quantify how investments in workers influence the bottom line. People analytics measures the performance of HR programs at the level of the individual or group – for example, how much investments in training improve job performance. Human capital analytics measures HR investments in terms of their impact on corporate financial performance, via metrics such as human capital return on investment (HCROI) and HR Value Added.

Human capital analytics links investments in workers – even so-called soft investments such as in well-being or mentoring – to the bottom line, allowing senior executives, HR leaders and the board to make better investment decisions. Both people analytics and human capital analytics matter a great deal because workers account for the majority of costs in nearly every type of organization. And when organizations treat their workers well – when they humanize the workplace – HCROI soars. In other words, what you ...