Improving talent management through predictive analytics

The shift towards predictive analytics also has significant implications for HR leaders

Predictive analytics for HR is fast becoming a reality for HR, according to an expert in the area, who said talent management is the main area of focus with prominent scenario planning in recruiting, succession management and flight risk.

“Vendors have solutions now, customers are interested and we are seeing the very first customer case stories,” said Holger Mueller, principal analyst & VP for US-based Constellation Research.

“Data should have been impacting decisions in business, and has in many areas – but not all the time for HR decisions.”

One reason for this has been that enterprises and managers have not had access to all the data they have access to now, said Mueller, who added that predictive analytics can now provide managers with suggestions and recommendations for their consideration.

“Predictive analytics cannot only be data driven, so we expect a more factual, more objective input into HR decisions from predictive analytics,” said Mueller.

While there are a number of metrics that can be applied in the process of predictive analytics, Mueller said there is only one that matters: does it work?

“That means – does a predictive algorithm have the quality to improve decision making”

“Who wants to do a performance review at night or on the weekend?”

“If it does, great. If it doesn’t it won’t be used, and whoever provided it has to go back to the drawing board (and has lost a little bit of credibility).”

Organisations that have taken a more innovative and effective approach in this area are able to adapt and push their vendors to predictive analytics solutions, Mueller added.

“Finding the right talent in recruiting is something that can be done since 12+ months and forward looking organisations are aggressively utilising these new technologies,” he said.

The shift towards predictive analytics also has significant implications for HR leaders, and Mueller said it will help change the process of decision making into one that is more based on facts.

“So less gut feel, more data,” he said.

“And it will help free up more time for very busy managers in lines of business, to spend more time on business (or their families) than on HR processes.

“Who wants to do a performance review at night or on the weekend?”

For organisations looking to get up to speed with predictive analytics, Mueller said the first three steps are to assess your organisation’s openness and readiness, evaluate vendors and experiment and implement.

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