The state of human capital analytics in developing countries: a focus on the Middle East

Pages190-198
Date14 October 2019
Published date14 October 2019
DOIhttps://doi.org/10.1108/SHR-07-2019-0062
AuthorPatti P. Phillips,Jack J. Phillips
Subject MatterHr & organizational behaviour,Employee behaviour
The state of human capital analytics in
developing countries: a focus on the
Middle East
Patti P. Phillips and Jack J. Phillips
Abstract
Purpose Human capitalanalytics (HCA) is integral to all other human capitalprocesses. With a mature
analytics practice, leaders can makebetter decisions more quickly and with greater confidences. This
paper aims to describe results of research that shows how organizations in Middle East countries are
investing in HCA. Specifically, it describes as follows: the extent to which they are investing; types of
projectsin which they are investing; and factors critical to makinganalytics work.
Design/methodology/approach While research may include respondents from organizations in
developing countries, only recently have efforts been made to monitor progress specifically in these
countries. This paper attempts to describe the most recent findings of such research, paying specific
attentionto the use of HCA in the Middle East.
Findings Organizationsin the Middle East embrace HCA. While still in its infancy,analytics is poised to
be a strategicdriver that will lead to improved organizational performance.
Originality/value Whether investing in leadership development, talent acquisition, employee
engagement or talent development, analytics plays a central role in informing decisions about
people investments. To make HCA work, Middle East organizations plan to continue building
capability through training; embracing technology and striving to link data across programs and
platforms; and integrating systems, processes and people with other functions, particularly finance.
In the end, organizations will seamlessly integrate HCA into all processes to drive organization
performance.
Keywords Middle East, Analytics, Human capital, Human capital analytics, Human capital strategy
Paper type Research paper
The role of human capital analytics
Analytics is the scientific process of transforming data into insight for making better
decisions (INFORMS, 2015). Humancapital analytics (HCA) is the application of analytics in
the context of human resources (HR). Sometimes referred to as talent analytics, people
analytics and HR analytics, HCA is the lynchpin of all thing’s human capital (Ray et al.,
2012). Whether investing in leadership development, talent acquisition, employee
engagement or talent development, analytics plays a central role in informing decisions
about people investments. Figure1 shows this relationship.
Research on the use of HCA in developed countries is not new. Organizations such as
The Conference Board, Institute for Corporate Productivity, Deloitte, McKinsey, ROI
Institute, etc., routinely check the status of HCA practices. While research may include
respondents from organizations in developing countries, only recently have efforts been
made to monitor progress specifically in these countries. This article attempts to describe
the most recent findings of such research, paying specific attention to the use of HCA in
the Middle East.
Patti P. Phillips and
Jack J. Phillips are based at
ROI Institute, Birmingham,
Alabama, USA.
PAGE 190 jSTRATEGIC HR REVIEW jVOL. 18 NO. 5 2019, pp. 190-198, ©EmeraldPublishing Limited, ISSN 1475-4398 DOI 10.1108/SHR-07-2019-0062

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