By Sarbojit Mallick, Co-founder at Instahyre
Predictive analytics in HR has not emerged just as a trend; it is the evolution of the industry that was previously viewed as a backend department. Traditionally, predictive analytics was preferred by organizations specifically for business management, finance, risk, sales, etc. However, techniques like Data Mining, Artificial Intelligence, and Machine Learning have changed the game of talent management by improving the process of making predictions about the future workforce.
With the help of smart analytical tools, talent acquisition managers gain a better understanding of the workforce’s behavior before they make their next decision. It entails making accurate projections about workforce management, including identifying high-potential candidates, predicting employee turnover, etc. to help the organisation stay ahead of the curve.
Understanding Predictive Analytics
Predictive analytics uses historical data to forecast future trends in HR. It can help talent managers and HR leaders in identifying trends for improving hiring and retention strategies for creating a highly engaged and productive workforce. It can be used for identifying both: at-risk employees and growth opportunities, to help talent managers formulate influential hiring and retention strategies.
Before the technology revolution took over, talent managers were confined to mapping headcounts, filling up vacant positions, keeping track of paychecks, etc. Businesses lacked the idea of equipping talent managers with data-driven insights to help them make informed decisions about talent management. Now, tech-driven talent management teams are finding success by moving from reactive to proactive approaches in recruiting, improving engagement, and boosting retention.
Use Cases of Predictive Analytics
Technology has transformed the way business departments function and HR is no exception. It embraces predictive analytics as an indispensable tool for workforce management as talent managers today have multiple sources to acquire candidates’ data like job applications, social media profiles, and resumes.
Predictive analytics automates data analysis from different sources to help talent managers with candidate sourcing and screening. Talent managers can quickly identify the candidates’ profiles with the most relevant skills and experience to fill the position from multiple sources including job applications, social networking platforms, and resumes. Additionally, it automates the screening of candidates which frees up HR teams, allowing them to invest their time in more productive tasks.
By automating mundane tasks, talent managers can save their important hours of work and invest in scanning through the employee lifecycle. Data insights help managers identify employees experiencing burnout that could significantly contribute to the employees being at risk of leaving. The goal of a company is not to retain all employees but to implement filtration strategies to effectively improve the employee retention rate.
Additionally, predictive analytics use the capabilities of an ML engine that draws a personalised path to track employees’ performance. Personalised business activities and learning nuggets delivered to address workplace challenges can help the new recruits as well as the existing workforce to expand their capabilities. This makes the performance management of employees much easier for talent managers.
Predictive Analytics to Engage Employees
Furthermore, talent managers are unleashing the benefits of predictive analytics in boosting employee engagement. By gaining valuable insights into employees’ performance and potential, talent managers can make informed decisions to improve their engagement and productivity levels. For instance, talent teams can embed data-driven gamification activities with personalized rewards to address the challenge of poor engagement and focus on continuous performance improvement.
Future of Predictive Analytics
In this fast-paced digitally versatile world, predictive analytics addresses the pressing need to bring efficiency, improvement, and engagement in employees. Though people analytics has been available for a long while now, many organisations are still sluggish to implement it in hiring and retaining employees.
However, data-driven insights into workforce trends can significantly lower HR expenses burnt down to complete the tasks which can easily be replaced by technology. Hence, people analytics remain to be a critical tool in the HR technology space that is not only restricted to selection and recruitment but also employee engagement, succession planning, and promoting inclusion and diversity in the workplace.
Bottomline
Businesses are shifting towards innovative talent acquisition strategies powered by big data, AI, and ML to find the best candidates. The application of predictive analytics promotes fairness and accountability with transparency. As HR leaders aim to achieve qualitative results, predictive analytics will become a mainstay for forecasting HR trends and anticipating employees’ journeys.