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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world defined by volatility and intense competition, managing your organization's most valuable asset—its people—with outdated methods is a recipe for failure.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HR professional, line manager, or business executive who feels their organization's approach to people management is outdated and reactive.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: Phase 1: Scan your environment by analyzing the external forces and internal factors that impact your human, structural, and relational capital.
Phase 2: Plan for the future by shifting from reactive 'gap-filling' to proactive 'capability planning' using skills segmentation and scenario analysis.
Phase 3: Produce value by analyzing and optimizing HR services as integrated processes with measurable inputs, throughputs, and outputs.
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 Organism · Kurt Goldstein
Maslow sources the term 'self-actualization' from Goldstein and builds upon his holistic view of the organism.
Explorations in Personality · H. A. Murray, et al.
Cited as providing an 'excellent discussion' on the basic principle of centering motivation theory on goals rather than instigation or behavior.
Social Interest · Alfred Adler
Maslow credits Adler and his followers for stressing the importance of the 'esteem needs,' which he felt were neglected by Freudian psychoanalysts.
Wisdom of the Body · W. B. Cannon
Provides the foundational concept of 'homeostasis,' which Maslow uses as the starting point for his discussion of physiological needs.
Multipliers · Liz Wiseman
Explores how leaders can either amplify ('multiply') or diminish ('diminish') the intelligence and capabilities of their teams, a key concept for creating a positive, low-anxiety environment.
The Fearless Organization · Amy Edmondson
Provides the foundational research and practical steps for creating psychological safety, which the book identifies as crucial for reducing interpersonal anxiety and encouraging people to speak up.
Mindset · Carol Dweck
Explains the difference between a 'growth mindset' and a 'fixed mindset,' which is presented as a key tool for helping employees manage perfectionism and see failures as learning opportunities.
Crucial Conversations · Kerry Patterson, Joseph Grenny, et al.
Recommended as a resource for employees to learn how to navigate difficult, high-stakes conversations, directly addressing the book's theme of moving from conflict avoidance to healthy debate.
Better Allies · Karen Catlin
The author is quoted on specific, actionable steps for allyship, making her book a practical guide for implementing the principles in Chapter 7.
Blindspot: Hidden Biases of Good People · Mahzarin R. Banaji and Anthony G. Greenwald
Explains the science of implicit bias, which is central to the book's argument that leaders need to be proactive allies because 'not being racist/sexist' isn't enough.