For recent years, every HR related trends write-up included predictive analytics. So, exactly what predictive analytics, I like to think of this this way: HR metrics tell you so what happened in the past. For example, time to fill up. Or theyâre focused on cost-containment, like cost per hire. Both of such metrics are valuable, but itâs not all the information we might need to create business decisions.
Predictive analytics offer insights into the future. Itâs centered on probabilities and impact, so it offers flexibility to the organizationâs needs. I am aware, that sounds like a tall purchase. I decided that I wanted to find out more about predictive analytics so I picked up the copy of the book âPredictive Analytics for Human Resourcesâ simply by Jac Fitz-enz and John Mattox. (Fitz-enzâs book âHow to Measure Human Resource Managementâ is the go-to book for HR metrics. )
Why should HR focus on predictive analytics,
There are usually times when todayâs business environment is usually moving so quickly that we are unable to always be focused on whatâs happened previously. We have to give equal period (and some might argue a lot more time) to what we think is going to take place in the future and plan accordingly.
Thatâs where predictive analytics comes in due to the fact itâs what you do with the information a person gather. Predictive analytics measures three things business people talk about the most: effectiveness, effectiveness, and outcomes.
Efficiency dimensions include some we already determine such as average number of days in order to fill a requisition and price per hire.
Effectiveness measurements may contain new hire performance rankings, engagement survey results, and get out of interview data.
Outcomes measure success, productivity, and retention.
Predictive analytics is about the connection between these 3 types of measurement. Here are a couple of examples:
– Number of open up hires (efficiency) – Quality associated with hire (effectiveness) – Length associated with employment (outcome)
– Average price per hire (efficiency) – Cultural fit (effectiveness) – Contribution in order to product quality (outcome)
– Amount of training attended (efficiency) — Hi/lo potential status (effectiveness) — Increased profit margin (outcome)
HR metrics arenât going away. Neither are usually predictive analytics.
A few months ago, We wrote a post about the requirement for HR pros to focus on their conditional abilities. If youâre looking for a method to increase your skills, wrapping your hands around predictive analytics might be a great place to start.
An increasing number of HR departments are designing analytical functions. If youâre looking for a job within human resources, knowing something about predictive analytics will be important.