Human Capital Analytics for Organizational Performance

Abstract

The human capital has become an important strategic asset in the knowledge-based economy and organizations have turned to data-driven methods to manage the workforce performance. Human Capital Analytics (HCA) uses progressive data analytics, artificial intelligence, and statistics to turn human resource data into actionable insights that can be utilised in strategic decision-making. This research paper discusses how human capital analytics can be used to improve organizational performance through the improvement of talent acquisition, workforce productivity, employee engagement, and employee retention. The research is based on the analytical and conceptual research method with the foundation in modern literature and addresses such dimensions of HCA as tools used in analysis, difficulties in implementation, and performance results. The article suggests the integrative model connecting human capital analytics capabilities with organizational performance and competitive edge. There has been evidence indicating that companies with mature HCA practices have a higher level of operational efficiency, strategic orientation and sustainable performance. The research adds to the currently accumulating literature on HR analytics and has its practical implications to managers who intend to create data-driven human capital strategies.