Using analytics in human resources is nothing new, but the way that data is being used – and what it’s being used for – is evolving into something exciting and cutting edge. This advancement is predictive analytics, and it can change the way talent acquisition, employee performance evaluation, and trend spotting is approached.
But what exactly is predictive analytics? How does it work? What are the benefits of predictive analytics to an organization? This post will give you a quick, easy-to-understand overview of everything needed to understand predictive analytics.
Defining Predictive Analytics:
In the most literal definition, predictive analytics is using current data to help make an accurate prediction on future outcomes. So, for example, if an organization wanted to gain insights on what point during the calendar year applicants are most likely to apply, they could review recorded data from when applications were submitted and, based on their findings, identify a trend and make a prediction on when applicants would be most likely to apply for jobs.
Trends are patterns in previous data. In the example above, a trend would be a particular month or months showing a higher frequency in applications. If, over a five year period, data is showing that the most applications received were from April to June, then that would be considered a trend. By identifying trends and associating meaning to those trends, organizations and human resources can make well educated predictions on what will happen in the future.
What Does that Mean for Recruiting?
For recruiting, that means leveraging identifiable trends to improve the amount of candidates and the quality of potential employees. Going back to the example, if a trend shows that there is an influx of applications from April to June, an organization could target their recruiting efforts during that time to increase the amount of applicants and ensure they’re bringing as much visibility to their organization as possible. Not only that, but predictive analytics can be used in the recruiting process to measure the potential success of candidates in a particular role, identify which candidates would be best for a specific position, and highlight personality traits that yield the most success to a position.
What Does Predictive Analytics Mean for Employee Performance Evaluation?
Similar to using predictive analytics to identify opportunities in recruiting, identifying trends in current staff to predict job performance, areas for improvement, and strengths in an employee is all possible, and beneficial to the organization. Using predictive analytics allows companies to make adjustments and address issues before they occur, while seeing what they can do even better than what they’re already doing.
What Are some of the Benefits in Predictive Analytics?
A recent study from Bersin by Deloitte showed that there can be incredible benefits from using predictive analytics. In their research, they found that organizations that leverage analytics were twice as likely to improve recruiting, three times as likely to recognize cost reductions and efficiency gains, and 2.5 times more likely to improve talent mobility.
Predictive analytics, however, is still a new and growing trend. Bersin and Deloitte found that only 4% of the 435 surveyed organizations were using predictive analytics to its full potential. With a concept still maturing there’s a lot of room for questions and plenty of areas to discuss. For more information check back regularly for more updates, or schedule a demonstration to learn how predictive analytics can be integrated into your solutions.