Predicting employee retention for data-driven human resources
Few business decisions stand to have a greater impact on success than hiring the right people for the right roles. Predictive analytics is proving to be the missing link in a hiring process that has until recently relied on intuition, personality and a few flat facts.
At this point, human resources lags behind other business functions in the use of predictive analytics. The recent Ventana Research Next-Generation Predictive Analytics Executive Summary ranks human resources (HR) seventh among seven front-office functions in the use of predictive analytics. That situation will soon change as HR executives begin to leverage the tools and techniques of predictive analytics to identify patterns that drive improved hiring decisions and highly effective retention of top-performing employees.
Bringing intelligence to recruitment
In the meantime, companies that take the lead in predictive analytics for HR stand to gain a significant competitive edge with a heightened level of intelligence and insight in their recruitment, hiring and retention initiatives. Without a doubt, an employee who is well suited to excel in a particular role and aligned with company culture raises the bar, uplifts morale and contributes to growth. When the opposite is the case, subpar performance that leads to a dismissal sets the stage for ill will. It also leaves a hole in the team, exposes the company to possible legal action and sets in motion the costly and time-consuming process of finding a replacement.
Companies have much to gain by getting it right. Predictive analytics provides a targeted solution with the key abilities for survival in the digital economy: seeing patterns in a wide range of data, gaining actionable insights and accurately anticipating future outcomes.
Even among matters as complex and subjective as human capital, predictive analytics is able to harness the power of insights contained within vast stores of disparate data sources. Through strategic implementation of statistical analysis and data mining, predictive analytics enables HR professionals to better understand past events and gain insight into current needs. This implementation also effectively fuels future decision management through the use of powerful models for everything from recruitment, assessment, correlation of success factors for particular roles and driving productivity and retention.
Sharpening the competitive edge
While human resource professionals may be excited about the potential of predictive analytics to revolutionize human capital management, chances are the prospect of untangling complex algorithms and advanced mathematical functions is less appealing. The IBM SPSS predictive analytics team understands that apprehension, and has designed a predictive analytics interface that is thoroughly accessible with solutions that can be tailored for any organization.
Wherever and whenever a critical decision needs to be made, SPSS can help with a predictive analytics model that allows for fact-based solutions capable of streamlining operations and sharpening a company’s competitive edge.
Register for IBM Insight World of Watson to hear Jane Hendricks speak on this topic.