Telling the Human Capital Management Story: Toward a Strategic Competitive Advantage

Executive Summary

More than three decades have passed since HR analytics pioneers, including Jac Fitz-enz, Laurie Bassi, and a handful of others, began recommending that leaders measure the impact of worker contributions and learning on quality, productivity, and corporate financial performance.[1] Since then, Microsoft, Walmart, Google, Amazon, and others have embraced analytics and told their human capital management (HCM) stories, earning accolades and success through evidence-driven human capital strategy and business results.

Despite these early examples and many since, analytics beyond the merely descriptive (head count, training hours, cost-per-hire, etc.) is proceeding slowly, even as other critical components of the business embrace data and evidence-based strategic planning at sophisticated levels.[2]

This may be about to change. Increasing expectations about HCM from regulators, investors, consumers, and employees—as well as fundamental changes in business strategy and the way people work—are causing boards and C-suites to focus more on their HCM strategy and story.[3] Sharing that story with stakeholders brings potential risk from greater-than-required disclosures, but also potential rewards.