When it comes to harnessing the power of data, Human Resources most likely lag behind the rest of your organization. This is because traditional hiring processes widely rely on a ‘gut instinct’ and a hiring manager’s personal opinion of a candidate rather than any sort of empirical evidence. While intuition is an important tool in the practice of talent management, it often puts the whole hiring process at risk of choosing the wrong candidates due to subjectivity and personal bias. Bad hiring decisions can quickly add up to thousands and even millions of dollars in hiring costs, not to mention lost productivity and shattered employee morale.
But fear not, for this is not going to last forever. As more companies turn to big data, technology will eventually be introduced to all aspects of HR, from sourcing candidates to planning training budgets. In this process, the focus will be less on reporting and more on planning and identifying trends that make for successful employee management. This is where predictive analytics comes into play.
Predictive analytics takes into account obvious factors such as education, job description, and skill sets and combines them with machine-learning algorithms that can be used to predict if a candidate will be a good fit for your organization. These algorithms also unveil the predictors that may not have been considered before, and that can eventually play a crucial role in improving your talent management efforts.
Many companies that have implemented predictive analytics in their talent acquisition are already seeing the benefits. Here is what you can expect:
→ Candidate Segmentation and Progressive Profiling
Predictive analytics segments the slew of information that’s being collected from social media sites, online activities, and various proprietary sources, and creates candidate profiles that can be gradually refined with some additional characteristics necessary for determining the right candidates for any given position.
→ Ability to Forecast the Market
Predictive analytics can reveal trends and create algorithms from general workforce trends such as unemployment/productivity rate, employment cost index, and average earnings. Such algorithms can play an important role in planning out your future recruitment needs such as forecasting the number of new hires in proportion to the attrition risk scores.
→ Improved Retention Rates
Internal data combined with the information available on Facebook, Twitter, and other social media sites can reveal topics that are most valuable in understanding employees’ attitudes and
reactions toward organizational changes, new policies, and team dynamics. Revealing these trends is critical to improving policies and developing procedures that can positively impact productivity measures and retention rates and ultimately contribute to the overall business growth.
→ Opportunity for Organizational Change
Implementing predictive analytics can significantly improve your business strategy and steer the whole organization in the right direction. Since strategy itself is based on understanding trends and planning ahead for process improvement, predictive analytics provides solid evidence and data needed to make that change.
Introducing predictive analytics to HR may be a daunting task as it requires extensive support and collaboration with other business units, such as Sales, Marketing, and Customer Service. In the long run, however, the insights derived from predictive analytics can help improve business processes and pave the way to outstanding employee experiences and a high performing workforce.
Candidate.Guru uses a predictive analytics algorithm which, combined with machine learning technology, data science, and attributes available in our proprietary database, examines hundreds of thousands of successful work relationships and predicts if your hiring manager and a prospective candidate will be a good cultural match, leading to a long-term, more productive collaboration.
To better understand how our software assists in finding successful candidates, download our free trial.