Know how HR can Leverage the Power of Predictive Analytics


The ability to combine HR data with business outcome data when making forecasts through data analytics is one of the important business trends for HR managers, according to a veteran in the field. HR’s data mainly consists of activity and compliance data, such as data about employees salary, when they were hired, when they were promoted, their performance review scores, data about the managers, and their engagement scores. However, HR managers do not monitor and track the actual performance of employees in their job role, once they are on board, and this is a very important distinction, said the CEO of Talent Analytics, Greta Roberts.

"Employees are hired by the companies to perform a specific role for their business – finance, sales, IT, call centres, and the like,” she said. “At the end of the day, business enterprises want to know if employees are performing the job responsibilities for which they are hired. Business performance needs to be tracked in the business.”

To predict actual business impact, it is important to incorporate predictive analytics models into business outcome data, and Greta Roberts asserts this data is easily available from the line of business. “Examples include attrition data, customer service score data, sales data, call centre data, error data, cash drawer errors, and more,” said Greta Roberts.

“The most effective HR Predictive Analytics include strategic business actions and outcomes.”   
Another important business trend for HR is predicting employee turnover, and potentially intervening to retain a valued employee who might otherwise leave the organization.  “Since the cost of replacing a valued employee is staggering, this trend makes complete sense,” said Greta Roberts. 

A third important trend for HR managers is predicting the performance of employees working onsite and offsite. According to Greta Roberts, hiring a low performer employee can be financially devastating, since the cost of a bad hire can eliminate the value of two to five best hires. The largest expense tends to be incurred on the training programs, which means the time someone takes to be fully productive. Greta Roberts also observed that business organizations are leveraging data during the talent acquisition.

Implications of Predictive Analytics for HR

Roberts said HR managers need to know how to locate the areas in the business units where employee low performance and turnover is a major challenge. To win with predictive analytics, HR managers need to focus on business problem solving. She recommends HR managers take three important steps to get up to speed with predictive analytics: 
Location: Bengaluru, Karnataka, India

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