Comptryx Insights on Workforce Analytics

Taking Measure of Talent

Harvard Business Review Analytic Services - September 2014

In today's knowledge economy, an organization’s workforce is its most important asset as well as one of its greatest investments. The management of human capital — the sum of a workforce’s skill, knowledge and experience — is particularly important in a challenging economic environment, as companies push to improve top- and bottom-line performance while aggressively managing costs. Yet in many companies there has been a lack of understanding and visibility into how human capital is managed — a shortage of analytical insights about where investments are made, what form the investments take, their impact, and how best to shift resources and practices.

In a survey by Mercer, for example, CFOs reported that their organizations spent 36 percent of revenue on human expenses, but only 16 percent said they had anything more than a moderate understanding of the return on human capital investment. In a similar study of 3,000 senior managers, executives gave their firms low marks when describing the employee-related data they need for decisions. The gap between the data they needed and actual quality of the data they received, leaders said, was more than 50 percentage points.

Download the HBR article