Analytics Cannot Replace Judgment — But It Can Sharpen It: A TCCM Review of HR Analytics and HCO

Background and Purpose: Human capital optimisation (HCO) and HR analytics (HRA) have emerged as central strategic imperatives for contemporary organisations navigating volatile, uncertain, complex, and ambiguous (VUCA) business environments. Despite a rapidly growing body of scholarship, the field remains theoretically fragmented, contextually narrow, and methodologically heterogeneous. This systematic literature review (SLR) addresses these deficiencies by synthesising 112 peer-reviewed studies published between 2010 and 2024 using the Theory–Context–Characteristics–Methodology (TCCM) analytical framework. Design/Methodology/Approach: Following the PRISMA 2020 protocol, a comprehensive search of Web of Science, Scopus, and EBSCO databases was conducted. Studies were screened by two independent reviewers (Cohen's kappa = 0.83). The TCCM framework was applied to decode the theoretical underpinnings, contextual boundaries, substantive characteristics, and methodological approaches of the extant literature. Findings: The review reveals that Human Capital Theory, the Resource-Based View, and Dynamic Capabilities Theory collectively provide the theoretical grounding. Contextually, research is skewed toward large multinational corporations in developed economies, leaving significant gaps in SME and emerging market contexts. Predictive analytics, talent acquisition, performance management, retention, and DEI metrics emerge as the principal substantive foci. Methodologically, survey-based PLS-SEM designs dominate (38%), while experimental and longitudinal designs remain underrepresented. Seven critical research gaps are identified, including ethical dimensions of algorithmic HRM, real-time workforce sensing, and crosscultural validity of HRA instruments. Practical Implications: The findings offer a consolidated evidence base for HR practitioners and C-suite executives seeking to deploy data-driven talent strategies. Organisations are advised to move beyond descriptive dashboards toward prescriptive and predictive analytical maturity while embedding ethical governance frameworks. Originality/Value: This is the first TCCM-structured SLR to comprehensively map the HCOHRA nexus across a 14-year publication window, offering a theory-driven future research agenda and a replicable methodological blueprint for scholars in human resource management, organizational behaviour, and management information systems.