Traditional HRIS provides basic HR logistical data like no of people hired, trained, paid, surveyed or appraised. This type of data is more of “accounting” of HR and being transactional, it is of little value to business leaders in making informed decision pertaining to workforce management.

Anyone can generate 50 or more metrics but to demonstrate to the business that x percent increase/decrease in a human capital management factor corresponds to how much change in business performance and ultimately financial performance, takes its toll and effort. Only vital few measurements make the difference.

Like finance uses the accounting data to build certain key ratios and metrics which are used at management level to analyze the financial health of an organization, similarly human capital analytics help in future forecasting and economic viability of workforce investments.
In business, the rear-view mirror is always clear but the windshield is hazy. Business leaders expect HR to change their focus from traditional historical headcount reporting to predictive analytics that can create value for the shareholder return on investment.