Why Predictive HR Analytics?
Are you struggling to find the right people to hire? Are you finding that your current workforce planning process just isn’t cutting it? Predictive HR analytics may be the answer.
Predictive HR analytics is a data-driven approach to workforce planning that uses historical data to predict future trends.
The market is crystal clear. Record-low unemployment rates coupled with voluntary resignations at an all-time high, and these trends show no sign of slowing. The need for workforce planning isn’t a passing thought to address later- it’s time to take the appropriate steps today. If you haven’t addressed your future workforce just yet, you’re not alone. Implementation of workforce analytics continues to be a struggle for many organizations.
PwC found in their report: Preparing for the Workforce of Tomorrow, Today that most companies surveyed are struggling to make definitive decisions about their workforce. The adoption of workforce analytics was identified as one of the top 10 “at-risk” capabilities in identifying some of the top threats organizations face for the future.
Using data from the organization, predictive HR analytics provide a wealth of insights that can give businesses strategies for gauging future talent needs, experience needs, and eliminating potential biases in employee selection. Failure to understand the importance or implement the data into your workforce planning is a critical misstep.
How Can Predictive HR Analytics Help in the Workforce Planning Process?
It’s estimated that 40-60% of workers in large companies are not engaged in their jobs and only 20% of millennials feel fully engaged. If you want to fill positions with top talent, you need to be able to see where your workforce is heading.
Predictive HR analytics provides organizations with the data needed to make informed decisions about the future state of their workforces by identifying key drivers that influence people decisions today. Predictive HR analytics delivers insight into what employees are thinking, which teams are struggling, and which individuals are at risk.
How? PREDICTIVEHR’s Predictive Analytics leverage true Artificial Intelligence to gather data. It’s looking for things like data inconsistencies, patterns, and clues to the world around it, helping you explore and analyze vast amounts of unstructured data to gain clarity and understanding of the many factors influencing your enterprise and staff.
10 Ways Clean Data and Predictive HR Analytics Are Vital To Company Success
- Predictive HR analytics gives you insights about possible trends in demand for specific skills from both internal sources and external sources so you can plan accordingly.
- It helps eliminate bias when hiring by predicting how well candidates will perform on given tasks related to their position before they even come in for an interview.
- For more senior positions, it can provide insights about future retirement intentions so you can plan for succession.
- Predictive HR analytics is crucial when it comes to making data-driven decisions on workforce planning.
- You can use these metrics to identify patterns in where people are moving within your organization and create job profiles that better fit the needs of your employees
- Predictive HR analytics also allows you to create more diverse hiring pools so you can hire more effectively and efficiently.
- You’ll be able to anticipate gaps before they occur, which is the best way to service your clients and customers.
- When using predictive HR analytics, you’ll be able to identify potential layoffs, transfers, and resignations ahead of time so you can better prepare.
- You’ll also be able to identify ways to keep your employees engaged.
- Predictive HR analytics will help you find out how often candidates are turning down job offers from competitors.
Let’s dive into some of the most relevant opportunities for Talent Acquisition and Management leaders today:Did you know predictive analytics can help identify skills gaps? That and more opportunities for Talent Acquisition and Management leaders in @PREDICTIVEHR's latest article: Click To Tweet
Using Predictive HR Analytics to Identify Skills Gaps
New sectors are popping up in real-time, so new jobs and positions arrive to fill the needs. Gauging recruitment success on ‘number of roles filled’ is now meaningless. Companies able to identify the skill sets they need their ideal candidates to possess will now have a leg up on the companies that can only think to require a bachelor’s degree and 5+ years of experience.
Predictive HR analytics have evolved to provide companies with pertinent data instrumental in making hiring plans based on your top performers’ best attributes. Businesses that deploy that technology can then hire top talent based on fit and skill, ultimately leading to the best fit for the position.
Predictive HR analytics delivers insight into what employees are thinking, which teams are struggling, and which individuals are at risk.
Predictive models can help organizations measure:
- The probability of an employee leaving or joining a team
- Determine how key attributes influence job performance
- Identify skill gaps in the current workforce
- Predict turnover or burnout, and more
- When an employee will be ready for promotion
- The best time to approach them with a new position or offer
- When they might leave or join another organization based on skills, experience
- Whether or not they are satisfied in their current role.
Identifying the skills your workers need will not only help with recruitment efforts, but it’ll also help you determine whether or not you’re an attractive company.
Identifying skills gaps are also crucial for internal development as well. If you can identify the weak spots in your employee’s skill set, you can work to correct them in workforce training or continued education. This not only helps employee retention, but studies also show that type of investment in your team can also improve morale.
Using Predictive HR Analytics to Personalize the Work
Your employees can only separate their work and home lives so much. What happens at one will inevitably impact the other; we’re only human after all. This is particularly true when it comes to personalized experiences through social media, online purchases, and online entertainment. For example, Facebook always seems to show an ad for a product you were just talking about, and Netflix practically handpicks your next series addiction.
But why should this matter at work? It’s actually affecting the mentality of your workforce. Not just your employees specifically, but the entire workforce. In our home lives, customization is king. Society at large is becoming more demanding, and they are quite used to seeing those desires fulfilled. Is it any wonder that our society of immediate gratification is now seeping into the workforce? By identifying exactly what your employees want, you can create a culture that keeps them engaged.
Employees want that same engagement, customization, and experience replicated by their employer, not just by the brands they shop online. Unfortunately, employee surveys and exit interviews are historically unreliable. Predictive HR analytics bridges the gap.
By understanding the needs of your employees, you can create a better work environment that encourages engagement and thus growth in things like:
- Benefit Packages
- Management Sentiment
- Compensation Structure
- Culture and Teams
- Work Environment
- Learning and Development
- Training and Onboarding
- Interviewing Processes
- Rewards and Recognition
- Performance and Productivity
Your analytics can help enterprise leaders personalize the experience for each employee through skill development, promotional tracks, identifying pain points, etc. Imagine helping each individual on your team create real-time career mapping for their own unique journey. THAT is the immediate gratification they’re searching for. In fact, an overwhelming 86% of employees are more likely to stay with their current employers if they feel appreciated.
DYK? 89% of workers who say benefits are important would be less likely to change employers for a higher salary?
Predictive HR analytics provides organizations with the data needed to make informed decisions about the future state of their workforce by identifying key drivers that influence people decisions today.@PREDICTIVEHR's HR analytics provide organizations with the data needed to make informed decisions about the future state of their workforce. Find out how: Click To Tweet
Using Predictive HR Analytics to Take the Bias Out Of Your Hiring
Legitimate bias-free recruitment has been a challenge in every company. It’s an unfortunate, albeit a natural, part of human nature. The problem is bias is often unconscious, making it hard to address or identify, even within yourself. If we can be honest with ourselves, we can all admit we likely have a bias in some area while hiring, consciously or unconsciously.
The recruitment process can often be difficult, especially when it comes to eliminating bias. This is a natural part of human nature, but it can be challenging to address or identify unconscious bias.
It’s important to note that, used incorrectly, it is possible for predictive HR analytics and the AI on which they are based, to absorb human biases as well. Companies must take care in how they implement certain data solutions.
However, there are ways to overcome this obstacle. Data-based evidence can help to reduce the impact of bias during the recruitment process. For example, by studying the demographics of your workforce through predictive HR analytics and conducting blind resume reviews, you can help to ensure that you are hiring the best possible candidates, regardless of their background or personal history.
If implemented and monitored correctly, data-driven recruiting can be highly effective at removing bias, leaving only the best possible fit for your position. The solution possibilities span from predictive HR analytics to promote diversity to the use of “blind” screening to eliminate any bias pulled from someone’s physical appearance, whether gender, ethnicity, indicators of social background, etc.
Make Informed Decisions For Your Organization’s Future
Now that you understand the importance of predictive HR analytics in workforce planning, it’s time to take action. Implementing predictive HR analytics into your organization can help improve retention rates, create a more engaged workforce, and reduce the amount of time and money spent on recruitment efforts.
If you’re ready to make the switch to predictive HR analytics or want more information about how it can benefit your business, contact us today. Our team is happy to answer any questions and help get you started on making data-driven decisions about your workforce.
There’s no way around it; preparing for your future workforce requires action today. Companies that embrace our new reality and work with their employees to address the changes will thrive, while those who don’t will continue to struggle in this market. Stop being reactive and start being predictive. Contact PREDICTIVEHR for your free demo.