Newer challenges, sophisticated technologies, and disruptive trends are influencing today’s role of recruiters. From AI, cloud services and automation, to big data analytics, workforce reshaping, and open platforms- these tools empower future assessments and risk navigation of businesses.
Over the years, recruiters have leveraged data to understand and improve their workforce hiring, compensating, and promoting practices to become more advanced. As data-driven HR planning has evolved, HR managers can capably leverage new tools, i.e., Predictive Analytics.
Predictive Analytics can be found everywhere. It is in the essence of technology that learns from existing data and forecasts individual behavior. Meaning the combination of data and analytics to predict the future. HR professionals leverage predictive analytics, which involves a set of different data-mining techniques to analyze databases and predict outcomes.
Prediction Through Analytics
Predictive Analytics uses historical data, statistics, and machine learning to predict future events to exercise informed and calculated decision-making. Say, an HR Manager is recording the combination of employee health, communication, travel, and their location in order to estimate if they are likely to continue working with the company or not. Each piece of information has something to do with their work-life balance, and therefore their decision to continue working or not.
HR Managers are increasingly relying on proven and data-driven predictive tools for devising policies to impact employees’ well-being at the workplace and their bottom-line performance.
Algorithms further use the latest data to forecast outcomes and deal with fluid, dynamic, and complex futures. As per a study in 2017, 69% of companies were integrating data to build a base for people analytics. Another study in 2020 conducted by Deloitte global human capital trends points that 53% of participants reported that their leader’s interest in workforce information has increased in the past 18 months.
Using these tools, HR managers gain a better insight into what they are looking for and then co-relate and synchronize efforts to effectively design and implement HR policies. Below you will find some of the ways to leverage predictive analytics.
Case 1: Simplifying Predictive Hiring
When data becomes an equalizer, consumer goods become commodities, and the global supply chain becomes more accessible. In this scenario, the way to outperform a competitor is to get smarter. Doing so requires great efficiency, a faster response rate, higher customer services, and importantly, a great talent on board with more room for it to perform. The challenge of forming human capital is that there are several ways to proceed, and of course, some ways are better than others.
If people are truly considered as one of your most valuable assets, then they would certainly be at the core of your strategy and deserve the best predictive analytics while hiring. With a few predictive hiring technologies available in the market, predictive hiring models use performance, attribution, and employee engagement data to find the best candidate.
Case 2: Predicting and Preventing Employee Turnover
Hiring a replacement requires a lot of time and energy and can cost a business around 150% of an employee’s annual salary. Even so, more than 75% of employee turnover is preventable. By detailing the HR factors and their trends, it is possible to identify employees in the ‘most risky’ stage of resigning and retiring from their job.
Using this will quickly help in tracking the trend and simulate the “what-if…” analysis to guide HR to optimal strategic decisions. It eliminates the unpleasant surprises by gaining clear and “in-time” insights on employee turnover.
Case 3: Building an Ecosystem of Talent Sourcing
Businesses do not merely focus on goods and services production but also on following effective and efficient processes to simplify things, reduce gaps, and distill data into information and ideas conveniently. With a holistic forward-looking projection, HR managers drive the employee data from their social media, health indicators, and even stock fluctuations to figure who all are most likely to go passive soon.
Such HDR algorithms help the hiring professionals to seek out candidates and devise suitable talent sourcing strategies for hiring the right employees.
Case 4: Setting Predictable HR Goals in Uncertain Times
A volatile business scenario keeps throwing back questions on dealing with human resource planning, shortlisting profiles, compensating and upgrading performance, losing talent, shifting or meeting new talent demands, exploring career advancement possibilities, and furloughing employees. How much will the time and funds be required for adjusting with the ‘new talent-demand normal’. How would future recruitments be done, and other scenarios?