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The myriad benefits of big data have long been touted and yet data analytics were not always accessible, affordable or practical for many organizations. But now a clear-cut link between analytics and workforce optimization and management has been defined, making use of big data a compelling and valuable proposition for many companies.

A recent blog post in ITBusinessEdge examines this phenomenon from a research standpoint. Cost control, as is typically the case, is one of the most compelling reasons companies are taking a closer look at data analytics in 2015 as they relate to workforce management. According to Mark Huselid, director of the Center for Workforce Analytics at Northeastern University and also a business professor, employees represent 60 to 70 percent of all expenses for an organization. Using analytics to refine the workforce in a meaningful way is crucial to keeping human resource costs under control.

“Most organizations tend to invest in talent hierarchically, where senior-level talent gets the most pay, best development opportunities and other professional perks,” said Huselid. “However, organizations should be managing vertically in who and what really matters – and in measuring and managing the outcomes associated with these processes.”

Getting paid based on merit and contributions to the organization instead of position on the corporate ladder? What kind of heresy is this? And yet, analytics tell the tale, directly correlating output and production with individual workers’ contributions, enabling companies to make better decisions when it comes to allocating human resources funds. Ensuring that data is readily available and structured in a meaningful way is an important component in properly utilizing it for workforce management and optimization.

The easiest way to do this is to conduct a formal cost analysis of at least one of the five pillars of human capital management. These include payroll, administration of employee benefits, talent management, time and labor management and human resources administration. This type of data is typically readily available to your organization and relatively easy to analyze and glean insights from.

Ultimately, big data analytics show that employees should be treated as an asset instead of a cost. By properly investing in human resources based on actionable data and proven value, companies can realize a return on investment in their employees, just like any other resource.