Predictive Analytics for Human Resources

JAC FITZ-ENZ, PHD, is founder and Chief Executive Officer of Human Capital Source, Inc. He founded the Saratoga Institute in Santa Clara, California after holding human resource positions at several major technology and financial services companies. He is widely regarded as the father of human capital strategic analysis, having published the first HR metrics in 1978 and the first international HR benchmarks in 1985. JOHN R. MATTOX II, PHD, is Director of Research at KnowledgeAdvisors. He is a former Associate Director of Performance Management at KPMG, Manager of Learning Effectiveness at PricewaterhouseCoopers, and a Manager at Arthur Andersen.

• Foreword xiiiPreface xvChapter 1 Where’s the Value? 1Some Basics 1What Is Analytics? 2Two Values 4Analytic Capabilities 4Analytic Value Chain 6Analytic Model 8Typical Application 14Training Value Measurement Model 15Inside the Data 16Notes 19Chapter 2 Getting Started 21Go-to-Market Models 22Assessment 23Developmental Experiences 23Financial Connections 24Sample Case 26Focusing on the Purpose 26Present-Day Needs 28How Human Capital Analytics Is Being Used 29Turning Data into Information 30Three Value Paths 30Solving a Problem 31Essential Step 31Prime Question 32Case in Point 32Preparing for an Analytics Unit 33Ten Steps for an Analytics Unit 35Structure and Team Building 36Developing an Analytics Culture 37Notes 37Chapter 3 What You Will Need 39Dealing with the C Level 40Breaking Through 41Research 41Recruiting a Sponsor or Champion 42Making the Sale 43Selling Example 44Working with Consultants and Coaches 46Designing and Delivering Reports 48Making an Impact 50Process Management 50Preparation 52Notes 54Chapter 4 Data Issues 55Efficiency Measures 56Effectiveness Measures 61Business Outcome Measures 67Note 69Chapter 5 Predictive Statistics Examples 71Begin with the End in Mind 71Go Back to the Beginning 74Who Owns Data, and Will They Share It? 75What Will You Do with the Data? 77What Form Is the Data In? 79Is the Data Quality Sufficient? 80Note 82Chapter 6 Predictive Analytics in Action 83First Step: Determine the Key Performance Indicators 83Second Step: Analyze and Report the Data 89Relationships, Optimization, and Predictive Analytics 96Predictive Analytics 97Interpreting the Results 102Predicting the Future 111Structural Equation Modeling 113Notes 114Chapter 7 Predicting the Future of Human Capital Analytics 115What Does the Future Look Like? 116Bringing It All Together 126Predictive Analytics for HR in Action 126Notes 128Epilogue 129Appendix: Example Measures of Efficiency,Effectiveness, and Outcomes 133About the Authors 135Index 137