The Human Resource (HR) department traditionally has performed a host of necessitarian tasks, such as hiring, employment policies, handling pay, retirement plans, and benefits. But today, as the economy runs through its cycles of good times and tough times, employees begin to empower themselves with the feeling that there are more employment choices. This renders the organization in an unsteady position. The bottom line can be damaged unless top talent is recruited and retained, performance is continuously monitored and improved, and employee training is conducted at various points to insure the employee skills set is at the cutting-edge. These elements of the employee lifecycle have forced HR to transform itself into Human Capital (HC) management with these elements as the necessitarian strategic goals. Once these goals are achieved the workforce is optimized. The purpose of this article is to illustrate how the advanced analytics of Structural Equation Modeling (SEM) can be used for workforce optimization, thus achieving the enterprise's strategic goals.