The New HR Analytics

Predicting the Economic Value of Your Company's Human Capital Investments

The New HR Analytics

Author:Dr. Jac Fitz-enz
Pub Date: May 2010
Print Edition: $21.95
Print ISBN: 9780814438848
Page Count: 368
Format: Paper or Softback
e-Book ISBN: 9780814416440

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A Quantum Leap Forward in Human Resources Strategic Measurement and Management


Despite the transformations in business brought on by global competitiveness, corporate scandals, and economic woes, very little has changed within the “people game.” Most executives still treat employees as expenses. Most managers lack understanding of human behavior. And most human resource professionals continue to rely on anecdotal experience loosely connected to obsolete paperwork. No wonder so many companies view HR as a cost center to outsource or cut.

The preeminent leader in quantifying what the HR department does, Jac Fitz-Enz believes it’s time for a human capital management revolution. In THE NEW HR ANALYTICS: Predicting the Economic Value of Your Company’s Human Capital Investments (AMACOM May 2010), he introduces a visionary, strategic human capital management model for the twenty-first century, HCM: 21. Developed by a consortium of major organizations and thinkers, HCM: 21 applies analytics—a mental framework and set of statistical tools—to transform people into value assets. Combining logic, statistics, and metrics with future-focused insights, it’s an innovative system that CFOs, line managers, and HR decision-makers can all apply to improve performance right now, while preparing their company for the opportunities and challenges ahead. Fitz-Enz calls this vital approach to business “Managing tomorrow, today.”

Imagine having the power to anticipate upcoming events and the tools to influence them. That’s the amazing competitive advantage Fitz-Enz promises to dedicated followers of THE NEW HR ANALYTICS. Presenting both the mindset and methodology for turning data into valuable business intelligence, he demonstrates how to maximize both the current bottom-line impact and future returns of recruiting, hiring, training, maintaining, and motivating employees at every level. Chapters take readers through the entire HCM: 21 process, which consists of four phases:

1. Scanning. Conducting a sweeping strategic scan of the external forces (industry trends, competitors, brand reputation, regulations, labor supply, and more) and the internal factors (vision, values, culture, leadership, employee brand awareness, financial capability, and more) that might affect a company’s future operations, followed by a thorough risk assessment.

2. Planning. Redefining workforce planning as capability development, replacing yesterday’s emphasis on closing gaps and filling positions with an agile, ongoing system focusing on building knowledge, skills, and employee engagement, reinforced by scenarios to help prepare people for uncertainty.

3. Producing. Generating value through the delivery of HR services by uncovering the most cost-effective combination of inputs (an employee’s decisions and behavior, influenced by the individual’s value system, career interest, ambitions, goals, health, and well-being) and throughputs (actions affected by policies, procedures, tools, information, and feedback) to achieve the desired outputs.

4. Predicting. Continually managing performance to maximize investments in people. To help managers accurately predict which actions will yield the best returns, Fitz-enz presents a three-point measurement system integrating an organization’s strategic focus and operational foundations with leading indicators for success.

Beyond describing every step of the HCM: 21 process, THE NEW ANALYTICS demonstrates the real-world payoff. Detailed case studies include lessons in how Ingram Book Group applied analytics to attack a long-term turnover and productivity problem; how Enterprise-Rent-A-Car selected the most cost-effective site for a new call center by tapping into’s market and demographic database; and how United Health Group combined technology and analytics to improve staff and retention, two of HR’s major challenges. Beyond its wealth of examples, the book features “how-to-do-it research essays” from thirty top HR experts and a complete set of tactics for working out the model and making it work for any company.

“We desperately need to revitalize human capital management,” Fitz-Enz makes clear to not only human resource leaders, but all business leaders. With THE NEW HR ANALYTICS, the acclaimed HR metrics trailblazer ushers in a promising new era of managing people with a solid, objective sense of their worth.


Jac Fitz-enz, Ph.D., is Founder and CEO of Human Capital Source, as well as founder of the world-renowned Saratoga Institute. Widely acknowledged as the father of human-capital strategic analysis, he developed the first human resources metrics in 1978 and introduced benchmarking to HR in 1985. Among many honors, he was named one of the top five “HR Management Gurus” by HR World, chosen by the Society of Human Resources Management as one of fifty people who, in the last fifty years, have “significantly changed what HR does and how it does it,” and designated a “Legend” by the American Society for Training & Development. He has published eleven books and nearly 300 articles, reports, and book chapters on measurement and strategic management, and trained more than 85,000 managers in forty-five countries. A second edition of his award-winning The ROI of Human Capital was released by AMACOM in 2009. His column, “Leading Edge,” appears monthly in the journal Talent Management. Dr. Fitz-enz makes his home in San Jose, California.

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