When it comes to HR becoming a true driver of business performance, findings from a new SHRM report, A Closer Look at HR Excellence: Becoming a Talent Optimizer, reveal a critical gap between ambition and execution — one that talent analytics is uniquely positioned to help close.
SHRM developed the HR Excellence (HR-X) Framework, which captures how HR functions successfully drive enterprise success. HR-X consists of four foundational dimensions, one of which is the Talent Optimizer dimension. Positioned at the intersection of business strategy and workforce execution, this dimension carries the greatest influence on overall HR maturity by directly influencing performance, engagement, and retention.
According to the report, however, Talent Optimizer remains the least developed dimension within HR functions, with only 1 in 16 organizations reaching high maturity in that dimension. In addition, talent analytics was ranked as one of the weakest sub-practice areas of that dimension (see chart below).
In an environment defined by rapid technological change and evolving workforce expectations, the inability to generate and act on workforce data and insights limits an organization’s ability to compete. For CHROs, stronger talent analytics could help unlock the full potential of their workforce and bring forth true HR excellence.
The Role of Talent Analytics in Becoming a Talent Optimizer
The report defines talent analytics as the use of data-driven insights to inform workforce planning and optimize performance. But the true value of talent analytics lies in its multiplier effect.
Without analytics, leadership development lacks precision. Learning investments drift away from future skills needs. Performance management becomes subjective. And employee experience initiatives operate without clear feedback loops.
In contrast, organizations that embed analytics into decision-making can:
Identify emerging skills gaps before they impact performance
Predict attrition and intervene proactively
Align workforce capabilities directly with business strategy
Measure the ROI of talent initiatives in real time
In short, talent analytics transforms HR from a reactive function into a predictive, strategic partner.
The Strategic Imperative for CHROs
The report’s data makes clear that most organizations have already mastered the “table stakes” of HR — compliance, safety, and core processes. The next frontier is intelligence.
For CHROs, advancing toward Talent Optimizer status requires a deliberate shift in mindset and investment. The report recommends that organizations elevate talent analytics into a formal strategic function, including building road maps tied to key business questions and developing executive-level dashboards.
The broader implication is clear: talent analytics must become embedded across every HR process, not siloed within a reporting function.
Strategic Takeaways for HR Leaders
Prioritize analytics as infrastructure, not a tool. Treat talent analytics as a core capability that underpins all talent decisions — not a standalone initiative.
Start with business questions, not data. Focus analytics efforts on solving critical business challenges (e.g., retention, productivity, workforce planning), then build data models around them.
Integrate analytics across the talent lifecycle. Break down silos between recruiting, development, and performance. Insights are most powerful when they connect the full employee journey.
Invest in predictive capabilities. Descriptive metrics are no longer enough. Prioritize forecasting — especially around skills gaps and attrition risk — to stay ahead of disruption.
Build executive fluency in data. Analytics only drives impact if leaders use it. Equip HR and business leaders with the tools and confidence to act on insights.
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