Predictive Analytics for HR Success
Human resource analytics is a data-driven approach for managing employees. HR analytics, also known as people analytics, workforce analytics, or talent analytics, is about analyzing people data to answer critical questions about your organization. predictive analytics is a technique of data analytics focusing at making predictions about future outcomes based on historical data and analytics techniques such as statistical modeling and machine learning. With the assistance of sophisticated predictive analytics tools and models, any organization can now use past and current data to reliably forecast trends and behaviors, days or years into the future. predictive analytics is often used to forecast inventory requirements, and manage sales.
Using predictive analytics in human resource management can smooth out all activities engaged with recruiting and retaining employees in the organization. This can help choose the right talent based on the culture, ethics and work environment of the organization and provide them with a conducive environment to retain them for an extended period. Predictive analytics can be used for the following purposes:
Predictive Analytics to Improve HR Strategies
1. Bridging skills gap
It often happens that the organization hires candidates with the appropriate level of education only to find later that the candidates do not have the required skills for the position. Thus, a lot of time and resources are wasted in training the employee to learn the right skills. This creates an unfavorable and inefficient skills gap for the organization. Using predictive analytics in human resource management can help fill the skills gap. Using historical data, a predictive analytics algorithm can assist with figuring out what skills the organization is lacking. This can help business leaders decide between recruiting new talent or improving existing ones. Business leaders can accurately determine which employees need the most attention to improve their skills and also identify areas for improvement. The employee's education, previous work experience, the projects the candidate has worked on, the skills needed for the projects and the success of the projects should be analyzed to get a general understanding of the skills that the candidates have and do not have.
2. Hiring right candidates
Human resources managers are always on the lookout for candidates with the right training and skills. However, one aspect they overlook is whether the candidate can fit into the culture of the workplace. To do this, HR managers must also consider the candidate's age range, behavior or even social media activity to understand their likes and dislikes. This can help decide if the candidate will be able to adapt to the business puzzle. Candidates typically have low productivity and end up giving up if they don't fit into an organization. This increases the task of HR managers finding replacements every few months and also puts an imbalance in the team they work with. Therefore, HR managers should follow the procedures mentioned above such as advanced background check and personality assessment to find the right candidates in the first place.
3. Improving employee productivity
Once the right candidate is selected, organizations need to ensure that the candidate is working with the highest productivity. Predictive analytics can be used to maximize a candidate's role in the organization. The data can be analyzed to measure employee performance by monitoring tasks, especially those that were difficult for the employee to manage. This can help improve areas where the employee is lacking. Training and counseling sessions can then be arranged to help improve employee performance and ultimately productivity.
4. Identifying disengaged employees
Retaining employees is a major challenge facing many organizations. Employees tend to leave the organization if they cannot find growth opportunities in the organization or if they have issues with the salary package. Prescient examination can assist with dissecting elements like compensation, advancements, worker conduct, and fulfillment levels to decide whether the representative isn't hired. If an employee is not interested in their job and has low productivity, this is an early sign that the employee may quit. Similarly, factors like the workplace environment, associations with peers, and higher specialists can likewise assist with foreseeing whether a representative is probably going to resign. Thus, appropriate steps can be taken to identify these employees and improve their experience in the organization. For example, according to a finding using Google's predictive analytics, new salespeople are likely to quit their jobs if they don't receive a promotion within four years. So, with this data in hand, organizations can take better steps to retain their employees.
5. Retaining top talent
Organizations must ensure the retention of their key employees for continued growth and success. But how can they identify their best performers? Human resources managers should analyze the contribution of employees to the organization during their tenure. They need to assess the areas in which employees excel, underachievers, and the business value they have added to the organization. Once the top performers have been identified, HR managers should research the potential reasons that might force these top performers to leave. Factors such as salary packages in other organizations for similar job profiles, additional incentives offered and opportunities for growth in other organizations should be assessed. Thus, human resources managers can come up with an emergency plan that prevents senior employees from leaving the workplace. For example, HP's Flight Risk Score helps them predict which employees might leave the organization, and as a result, the HR team can focus on retaining those employees.
How Humanware HRMS Help your organization
What interests HR is the analytics and reports. With humanware HRMS you can explore highly advanced dashboards that provide managers with an easy way to harness real time data and better understand their people. With the help of Business Intelligence and Agile HR Analytics Management can make decisions that lead to organizational growth.