Employee retention tells a lot about a company. A high retention rate shows employees are engaged, motivated, and enjoy their jobs. When employees give good reviews on websites like Glassdoor, it shows candidates your open roles are worth fighting for. The company also benefits from higher productivity, better quality work, and lower cost in turnover. So, what would you say if we told you predictive HR analytics could help you increase your retention rate?

What kind of approach would you take in a workplace with low morale?

What is a simple way to assess which employees are likely to leave the company in the next six months without doing too much digging?

What if you had a quick and easy way to assess which employees are likely to leave the company in the next six months?

You have just gotten into predictive analytics, but like many, you don’t have the time or technology to take your data-driven approach any further.

[bctt tweet=”What if you could tell which employees are likely to leave the company in the next six months? @PREDICTIVEHR shares how predictive analytics can kick your #retention woes:” via=”no”]

Predictive HR analytics has been around for many years now, although it was limited to just attrition until recently. Although some companies have been able to get better insight into “attrition” through a combination of data science and organizational behavior studies, predictive analytics has provided a plethora of options for organizations. Flipping the attrition numbers on their heads allowed innovative leaders who want engaged employees to start understanding how to keep them.

Insights drawn from predictive analytics can help guide any company looking to make their current employees happier or more productive. It can also be used to help make it easier for employers to hire the best people possible, cutting down on wasted time and money due to bad hires.

What are some of the analytics available? Leaders need to know how metrics such as mental health, stress levels, and engagement could affect your retention rates. The better you understand your employees, the better you can help them.

At the Risk of Human Error

Often, businesses complete a company-wide satisfaction survey to try and gauge engagement. However, the results of these surveys rely heavily on participants’ honesty. While they’re still employed by said company, it’s safe to say participants are telling management what they want to hear. This data set can be thought of as compromised and employees may not give any more information than what’s explicitly asked. Further, there is a 16% decrease in retention rates for employees who aren’t comfortable giving upward feedback.

Employee Behavior Analytics

Predictive HR analytics helps us determine why certain behaviors happen by looking at more extensive data sets. For example, if the majority of an office’s employees take their lunch break at 1:00 pm but HR wants to implement an 11:30-12:30 mandatory break, you would be able to infer that the proposed lunchtime policy is not conducive to employee satisfaction.

You can also take a more comprehensive look and see which factors best predict job satisfaction and retention rates. The obvious answer is to structure the proposed lunch break around when most of your employees prefer to take lunch. While this is a simple example, this process has multiple use cases.  You can use behavioral data to:

• Alter your employees’ commute
• More accurately, reconfigure benefits packages
• Create more productive time in the day
• Learn which policies are harmful
• View when employees typically leave/ask for a raise
• And much more.

Employees have value drivers that impact whether or not they want to stay within an organization. When you analyze those more closely, you can manipulate that data to offer up predictive analytics.

[bctt tweet=”Create more productive time in the day, identify when employees typically ask for a raise, & actually improve retention rates with predictive analytics. @PREDICTIVEHR spells it out in their latest article:” username=””]

A Closer Look At Sentiment And Value Drivers

As you can see in the example above, if your company policy requires employees to take a lunch break at 11:30 am, you are likely losing out on a significant chunk of the day’s productivity. Having a clear idea of how much value is lost by this policy allows you to determine which benefits outweigh the time loss.

It’s clear that factors other than lunch play a major role in employee retention if employees leave their jobs at 5 pm, regardless of whether they take a lunch break. The real value of predictive HR analytics lies in that you can now run through a list of variables, including work-life balance, compensation, and others, to determine which benefits your employees value the most.

By identifying these value drivers, you can determine what changes would have the highest potential for increased employee satisfaction. In this way, predictive analytics can identify problems and help managers get to the root of what’s driving people away from the business.

Addressing Underlying Retention Issues

In addition to predicting employee retention rates, if done correctly, predictive analytics can help address underlying issues within your company before they become problems. The key is removing employee hesitancy from your survey process and stripping it down to pure data. What do employees do? How do they behave? What issues are cropping up that don’t line up with policy?

Leverage Your Pre-existing Demographic Data

PREDICTIVEHR’s People Analytics will provide you with insights to optimize your workforce. You will be able to find out which employees are considering leaving at any point during their tenure and which employees are likely to feel disengaged the following year. Our software will provide you with actionable suggestions on better engaging these employees and improving their morale based on the data we collect.

Your company can utilize people analytics too. By integrating disparate Human Resources technologies with PREDICTIVEHR’s analytics software, you’ll skip the busy work of collecting, normalizing, and cleaning data.

Our easy-to-use collaborative software will pull this information straight from the original sources and provide you with correlations in both your turnover and retention. Our powerhouse software will become your single source of truth.

Most companies have a fair amount of data on their employees, including their roles and years worked for it, age, income, marital status, maternal leave, number of sick days taken, and performance reviews. With the help of this data, it’s easy for the software to identify correlations in turnover.

Actionable Insights

PREDICTIVEHR can provide companies with actionable insights that increase engagement and decrease attrition using big data analytics. They recommend that organizations monitor key roles for turnover rates and implement programs that cater directly to their employees’ needs.

Monitoring these key employees will allow the organization to identify whether they are satisfied or not and then provide them with programs that can restore their engagement if they are dissatisfied. PREDICTIVEHR bases the success of these programs on the collected data as well as information from employees themselves.

When organizations utilize predictive analytics and use the insights gathered from the data, they will influence employee behavior more effectively. Through PREDICTIVEHR, they can learn which employees are considering leaving and be proactive about making them satisfied with the working conditions. Organizations using predictive analytics to the fullest extent have seen tremendous results from their employees who felt more motivated and more connected to the organization’s objectives.

For instance, are employees who live within a five-mile radius from the office apt to stay with the company longer than those who live farther away? Are employees who have more flexible work schedules more likely to stay with the company than those who have fixed hours in the office? When properly analyzed, the correlations between demographics will give you valuable insights.

Perhaps employees with dependents on their health insurance take more paid time off than those without dependents. Consider flexible work, personal time, or work from home opportunities to allow them the option to make up hours after appointments, child sporting events, or when daytime care falls through. If employees stay at a company three years longer when they get an end-of-the-year bonus, consider allocating money into the budget to retain these knowledgeable, worthwhile employees.

Typically, these patterns are only detectable by a software application, but once defined, the software can scan the whole database of employees and make predictions on the likelihood of that employee leaving. Providing real-time, interactive lenses allows companies to move away from stale, point-in-time spreadsheets.

Using Predictive HR Analytics to Increase Employee Engagement and Employee Retention

Whether you choose to use a human analyst or predictive AI, the next step is the same. Before getting started on a plan of action, give your management team the tools and support to understand the data’s insights. Explain to each individual how the information was conceived and what it means for their department or sector.

Then, gather for a strategic planning meeting where each person will outline the low-hanging fruit as well as the essential projects that are a must for their sector. Use the data-driven insights to develop an action plan.

Whether you’re using AI or have an outsourced team to help you make strategic decisions, your team should know you’re not making changes just to throw a wrench in everyone’s day. This transparency will let them know actions are being taken and that the company values employee retention.

PREDICTIVEHR analytics can play a significant role in improving employee engagement and employee retention. Take control of your company by leveraging the data you have. With emotions removed from the equation, factual data can be analyzed to see trends. Use the delivered insights to improve engagement, retention, and, in turn, business. Discover how PREDICTIVEHR’s people analytics software will identify valuable business insights for your company when you book a free demo.

“HR professionals often see their largest job challenges as sourcing talent, improving performance management, defining compensation, and providing training programs and other HR systems.”

-Dave Ulrich, Professor at The University of Michigan

96% of senior HR professionals believe AI can greatly enhance talent acquisition and retention.

Here are five main trends impacting HR Technology today. We explore these to illustrate how vital system interoperability truly is. With new technologies impacting Human Capital Systems every day, it’s crucial to understand how they speak to each other.

Smarter recruitment through AI. This evolving technology is one of the most influential trends in human capital systems. According to Deloitte’s Human Capital Trends 2018 report, while AI has been around for decades, it’s only recently that businesses have been able to implement it at scale.

Efficient and sophisticated compliance. New regulations continue to require updated compliance policies. These changes include GDPR in Europe and the California Consumer Privacy Act (CCPA) in the US, which took effect on January 1, 2020.

Big data awareness. To extract value from big data analytics, organizations need to fully understand their workforce profile and engagement drivers.

Improved performance management through analytics. HR Leaders are bridging the gap between Human Capital Management and Big Data to provide real-time insights into workforce analytics.

Better analytics for boosting diversity and inclusion. D&I is one of the most critical topics among HR professionals, especially as diversity and inclusion initiatives are more closely associated with core business outcomes.

As we can see, there is a wide range of trends impacting HR technology today. All this induces integration challenges organizations must address to meet their business objectives.

HR systems help organizations reap many benefits by integrating them. Using a single source of truth can streamline HR operations, improve employee records, and provide real-time views of employees.

[bctt tweet=”It’s hard to run an efficient business if your systems don’t work together. That’s why system interoperability is of the utmost importance. Here are PREDICTIVEHR’s tips for creating cohesive systems:” username=”@PREDICTIVEHR”]

How Does HR Software Interoperability Work?

In short? Through interoperability, disparate finance, people, and productivity systems can “talk” to one another and increase productivity. Integrating disparate systems allows you to:

• Streamline the flow of information between departments
• Easily capture critical data from a variety of sources
• Be flexible and responsive to changing trends and needs

Why Is ​​HR Software Interoperability Important?

It’s helpful to start by examining what can happen when systems don’t communicate with one another.

First, we have wasted spend. An unintegrated point solution, for example, could sit idle for years before anyone notices.

In addition, many different systems and solutions are used regularly, causing confusion and backlogs. One survey reported six in 10 workers waste up to an hour a day navigating between apps, and that 68% switch apps as many as 10 times an hour.

To alleviate these challenges, consolidate software use in day-to-day work by connecting disparate applications or streamlining different workflows within a single platform.

What Is Driving the Trend Toward Interoperability in HR?

In recent years, the digital transformation experienced by enterprises, including an ever-increasing number of mobile devices and applications, has created a new type of data center environment that requires greater flexibility than ever before.

With the advancement of technology, there are more systems to integrate and more information coming at us faster than ever before. For our workflow to work effectively, we must ensure that no data falls through the cracks, all stakeholders receive the right service, and we have automated alerts that let us know when we need to pay attention without spending the whole day tediously combing through databases.

Every Human Resource business system has a purpose. When these systems are combined, organizations can maximize the value of their talent management systems through enhanced integration.

[bctt tweet=”6/10 workers waste up to an hour a day navigating between apps. App bloat and redundant systems waste money and tank productivity. Here’s why you need interoperable systems to remain efficient: ” username=”@PREDICTIVEHR”]

Every System is Like Its Own Country

Every business system has a purpose. When these systems are combined, organizations can maximize their value through enhanced integration.

Human Resource based systems, e.g., ERP, SAP, Oracle E, have different architectural setups, similar to individual countries with their own unique languages, customs, and religions.

These systems use different data formats, so transferring data between them is a challenge for IT users. Automation simplifies the computer-to-computer data exchange process and prevents the formation of automation silos among organizations.

Companies with many employees need to get that information into their critical systems. HR teams will have to resurrect data errors and redo several tasks otherwise. Data connectivity platforms can make the entire process faster and less labor-intensive.

By improving data connectivity, organizations can reuse their existing data dumps to build accurate reports and improve the entire data retention process. HR teams can monitor employee performance, as well as how a particular resource influences that outcome.

Organizations with a complex mixture of hybrid applications can gain a competitive edge by integrating HRMS. Information silos break down, interoperability is improved, data accuracy is improved, systems are turbocharged, and processes align with the organization’s goals.

The Seamless Integration Path Selection Process

Interoperability – the seamless integration of systems, data, and platforms – plays a vital role in today’s infrastructure. Enterprise systems and data integration that helps your organization operate and meet its goals and missions require secure, easy-to-use, and cost-effective integration.

Finding a solution that matches your team’s needs is the key to a successful implementation. It might be enough to simply integrate the tools employees currently use as much as possible. In contrast, if you’re starting from scratch or reorganizing current processes, you might be better off considering a more comprehensive approach.

If you’re going to adopt any new tools in the future, ensure they’re compatible with your current processes. HR and IT have never been more closely connected – nor more crucial to each other.

For more information on creating cohesive business systems, please visit predictivehr.com!

Did you know that more than 50% of companies report difficulty integrating workforce data from both HR and non-HR systems? With the widespread adoption of HR systems, organizations require a sophisticated solution to enhance data collection, aggregation, normalization and cleansing from disparate workforce planning systems, talent management platforms, and compensation and payroll programs to name a few. By utilizing predictive AI to clean and drill down into an increasing pool of data points, executives can glean insights on today’s data and use those insights within a predictive framework to make insightful people decisions for tomorrow.

PredictiveHR Integrity offers pre-built Executive Lenses. The CHRO Executive Lenses leverages the power of Artificial Intelligence so each member of your executive team can see the data and actionable insights that matter most for executives to be successful in their role. Our platform gives you the power of knowledge at your fingertips to provide the guidance you need to make meaningful business decisions that most impact your business.

[bctt tweet=”50% of companies have trouble bring their disparate systems into one place. Is that you? See how @TalentData is making it easy! ” via=”no”]

Utilizing Predictive AI for Data Normalization

Technology that allows HR professionals to not only aggregate but integrate workforce data can greatly provide companies clear visibility into their workforce, reveal business and performance opportunities, and provide proper data management. Yet, most organizations are still stuck on the notion of managing their employee data from multiple systems within their company. If data is scattered or misclassified, there are several issues that can occur:

1. Unorganized Data – Pulling data from several systems can become messy when you’re searching for the information you need.
2. Communication Discrepancies – Gathering and reporting on analytics can easily lead to misinformation and communication, leading to inaccurate or inefficient decision-making.
3. Slow Collection and Sorting Processes – HR teams are stuck going through each separate system in hopes of finding the information they need to make impactful decisions. Yet, they end up wasting valuable time and money.
4. Being Misclassified from a Payroll and Department Perspective – Operating from separate systems allows for mislabeling to happen easily. By normalizing workforce data, HR managers can extract and report on data from one centralized platform.

Powered by PredictiveHR’s AI engine, Integrity™ harnesses the power of your data by aggregating, cleansing, and normalizing your employee data all in one spot. With all the information you need right at your fingertips, PredictiveHR’s platform is your single source of truth to support your business decisions. Now, your HR teams will stop wasting time sorting through numbers and get to issues that truly matter and impact your company faster. About 39% of companies don’t have a strategy in place to manage data, don’t let disparate systems be another obstacle to get through.

[Read: 3 Key Considerations for Successful Use of Data & People Analytics]

Uniting data into one place provides users reliable access to their employee data from a single dashboard to highlight their workforce issues. The CHRO Executive Lens allows you to:

• Headcount – Have a high-level view of your workforce costs, productivity and retention to plan your next move.
• Retention – Ramp and flex your costs based on sales and headcount.
• Talent Acquisition – Have comprehensive deep dive into your talent of today and tomorrow.
• Performance – Predict how the efficacy of your learning and development will impact your employee performance for years to come.
• Productivity – Win the war for talent with insights into your source and cost of hire and how it compares.

Predictive AI is just the start of what analytics can do for you and your company. Insight into all aspects of your workforce data will open up endless opportunities and support decisions your team wouldn’t have been able to make before.

[bctt tweet=”@TalentData is changing the game when it comes to #PredictiveAnalytics. Check it out! ” via=”no”]

Digging Into the Data

A workforce analytics software that’s automated, scalable, and reliable can provide full visibility into your entire talent population. The CHRO Executive Lens supplies executives and HR managers the data and industry-leading insights they need, instantly. By optimizing and normalizing every function of your data sets, each Lens delivers easy-to-understand dashboards, that are automatically updated, all the time.

In addition to our comprehensive solution, we go above and beyond to serve as your trusted advisors. We’ll provide you proactive insights before it’s time to make a decision and help you develop strategies to optimize your HR systems, improve performance, reduce turnover, and manage talent.

 

By utilizing PHR we were able to optimize our current Core HR systems, receive Recruiting Support, as well as, implement the People Analytics Platform for real-time reporting and data analysis.

– Heather Hartford, Chief People Officer, Acquia

 

The CHRO Executive Lens is entirely customizable to help you identify your most significant pain points and challenges by predicting upcoming issues, providing actionable insights and leverage strengths you wouldn’t have otherwise found. Each operational role is equipped with their own Lens to find the information they need. When it comes time to make a decision, you’ll have the factual statistics you need to support and empower HR, that’s 100% backed by PredictiveHR’s team of HR experts.

What can we provide for you?

• Technology Optimization
• System Aggregation
• Data-Based Decision Support
• Data and Analytics Optimization
• At-a-Glance Predictive Analytics and Reporting

PredictiveHR is here to support, empower, and elevate your team every step of the way. With the solutions and services at hand, you’ll have the right resource to keep your organization on track.

Book a demo to see how we’ll help you!

Originally published on HR.com, the foremost, trusted industry resource for education, career development, networking, and compliance.

Tools that leverage artificial intelligence (AI) have come a long way with regard to workforce analytics. When integrated, combining AI with workforce analytics allows businesses to integrate disparate data systems and use predictive data to make business decisions based on their greatest asset: their people.

Many HR Departments are managing numerous disparate talent-related systems that require separate logins, data management processes, and reporting tools. Gathering this information for executive management to make strategic business decisions is nearly impossible and prone to human error. More than 70% of companies now say they consider people analytics to be a high priority.

Given the costs of sourcing, hiring, onboarding, managing, and replacing employees, executives need accurate analytics often. The key to solving this data issue or lack thereof is by using workforce analytics software powered by artificial intelligence. These combined, give businesses a data-driven approach to people analytics allowing them to make important financial decisions.

Let’s dive into a few additional ways AI can help power workforce analytics and how it benefits organizations.

[bctt tweet=”Discover how #AI and #WorkforceAnalytics can impact your business to maximize your talent management and support hiring decisions with @TalentData” via=”no”]

AI Powers Workforce Analytics

Sourcing, hiring, onboarding, managing, and replacing employees is challenging and costly. Given the steep costs in each scenario, the executive suite is in desperate need of one system that automatically finds the important data that truly matters and allows them to make impacting decisions that benefit the business. As data-driven HR practices are becoming common among business leaders, it’s important to understand the impact these tools can truly have.

Using a workforce analytics tool which leverages AI gives the ability to:

1. Address workforce productivity changes with workforce analytics.
2. Aid proactive HR strategy and organization.
3. Understand the performance, demographics, retention rates, payroll gaps, etc. of your current employees allowing you to make more informed business decisions.
4. Source areas where efficiency can be improved with automation. While workers are an asset to a company, sometimes the tasks they do can provide minimal returns.
5. Improve employee’s engagement by understanding their needs and satisfaction. The tool will pull data from every interaction with employees from the time they started to present day and will help create a better picture for retaining them.
6. Create better criteria for HR and hiring managers to provide a better hiring process overall.

People Analytics Powered by AI Allows Business to Lower Turnover Rates

Human Resources is uniquely positioned in the organization to ensure the workforce is aligned with the needs of the business and at an optimal cost. Now, more than ever, business leaders need strategic insight and the ability to model how turnover trends impact revenue and profits. And, they need this information to be accurate and in real-time.

Traditional HR analytics examine employee data across different dimensions such as department and demographics to identify similar patterns within metrics like turnover and retention. Conclusions are then used to formulate decisions that affect the business.

Predictive workforce analytics does this by going a step further with artificial intelligence and using the evidence from traditional analytics as inputs for advanced techniques like machine learning. This data provides forward-looking measures such as a “flight risk,” which quantifies the likelihood of an employee’s leaving an organization within a certain period of time and the potential causes.

Predictive workforce analytics also identifies hidden connections between key factors contributing to employee turnover. The main variables the systems look into include pay, promotions, performance reviews, hours of work, commute distance, and relationship with a manager. Businesses also use external data such as labor market indicators, social media, and current economic scenarios as data variables while formulating a hypothesis and building models for retention. HR teams and managers use these findings from the report to ensure actions are taken to help retain employees.

Automatically Identify Internal Candidates Based on Workforce Analytics

Predictive workforce analytics powered by AI allows businesses to indicate the top talent to fill the open positions, making sure the HR department has the data they need to promote the right talent. Not only are you filling those vacancies faster, but you’re doing so effectively and at a lower cost. Breaking it down further, these tools aren’t helping the HR department performs “talent rediscovery” searches on previously known candidates – it’s compiling data from internal candidates to rank them based on their aptitude, experience, and other indicators which help predict if they would make a good fit in the open position or not.

AI ensures this process is accurate and compiled faster by integrating with every system and showing you the data that really matters to ensure you’re making the most informed people decisions. Who’s performing the best, what’s their performance been like the last three years, how many raises have they received, and ensuring this data is used to make better hiring decisions are just a few features on how this can be applied to internal hiring.

Analytics is not a thing of the future – they are adapting, changing, growing, developing, and strengthening companies across industries. And while some companies may not be applying them yet, those companies that want to make an impact on retention and maximizing talent management will implement workforce analytics into their company structure to gain a competitive advantage within their industry sooner rather than later.