How Predictive Analytics Benefits the Process of Talent Management?

By Published March 15, 2017
Preidctive analytics

When it comes to harnessing the power of data, the Human Resources (HR) department is most likely to lag behind the rest of your organization. This is because traditional hiring processes often tend to rely on a ‘gut instinct’ and a hiring manager’s personal judgement of a candidate rather than any pragmatic evidence.

While intuition is an important tool in the practice of talent management, it often jeopardises the recruitment process and often leads to the selection of wrong job candidates due to subjectivity and personal bias. Debauched hiring judgements can quickly add up to thousands and even millions of dollars in hiring costs, not to mention lost productivity and crushed employee morale.

Preidctive analytics
Img. src. FICO

But, there’s nothing to worry about! Analytics has already made its way into human resources, and it is all set to redefine the process of hiring and recruiting. Among all kinds of analytics, organisations are now resorting to predictive analytics to empower their hiring procedures.

What is predictive analytics?

The branch of progressive analytics used to make extrapolations about unknown future events is referred to as ‘predictive analytics.’ In the domain of human resources, it is about recruiters predicting for possible candidates for a vacant position. Predictive analytics fulfils many techniques including data mining, statistics modelling, artificial intelligence, and machine learning to analyse existing data and make predictions about the impending future.

Predictive analytics in a recruitment process allows organisations to become proactive, advancing, anticipating outcomes and behaviours based on actual data rather than falling back on a notion of assumptions.

Benefits of predictive analytics in recruitment

Needless to say, there are ample benefits of predictive analytics for recruiters and organisations. Here’s what you can expect from predictive analytics in hiring:

#1. Candidate segmentation and progressive profiling

Predictive analytics has the power of segmenting the slew of information that is being collected from all social media channels, online activities, and various other proprietary sources and enables in creating candidate profiles that can be progressively refined with some additional characteristics necessary for determining the right candidates for any given position.

#2. Ability to forecast the market

The next major benefit of implementing predictive analytics is it can reveal trends and also create algorithms even from general workforce trends such as productivity rate/unemployment, employment cost index and average earnings. Such algorithms can play a significant role in planning out your future hiring and recruiting needs such as foreseeing the number of new hires in proper proportion to the attrition risk scores.

#3. Improved retention rates and business growth

Implementation of predictive analytics is a great way to ensure employee retention and also warrant business growth. Internal data clubbed with information available on social channels can reveal a lot of topics that are most valuable in understanding employees’ behaviour, attitudes and even reactions towards organisational changes, team dynamics, and future new policies. Revealing these trends is quite critical towards improving procedures and developing processes that can positively impact productivity measures, assure better retention rates and eventually contribute towards the overall business growth.

Introducing and implementing predictive analytics in human resources can be a challenging task as it requires extensive support and collaboration with other businesses. However, once implemented and carried out correctly, predictive analytics can go a long way in benefiting an organization in its recruitment process.

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