HR professionals aren’t fortune-tellers — but it’s important for HR departments to plan ahead and be prepared for a range of business outcomes. Predictive HR analytics uses the power of machine learning and other types of algorithms to process employee data in real-time and give HR teams the tools they need to make informed decisions.
Here’s what HR leaders need to know about HR predictive analytics, and how you can use it for recruiting, performance management, workforce planning, and more.
Human resources (HR) analytics — also referred to as people analytics or workforce analytics — is a type of data analysis used to assess employee behavior and predict workforce trends. Predictive analytics is a subset of data analytics focused on future outcomes, as opposed to diagnostic or descriptive analytics, which are focused on looking back and determining how or why something happened the way it did.
Predictive workforce analytics is a powerful tool that can help HR departments make sense of historical data sets and predict future trends and likely business outcomes. From anticipating employee turnover rates to implementing a new HR initiative, HR leaders can use predictive HR analytics to make more strategic decisions.
Predictive analytics tools allow you to optimize your existing HR functions and discover new, more effective ways of doing things. Here are three ways in which predictive HR analytics can empower your team and improve HR strategies.
Tracking HR metrics like attendance and employee performance is important, but using that data to predict what’s most likely to happen can be even more valuable. Predictive models use historical data to anticipate future trends, such as employee attrition rates or skill shortages, so you can play an active role in shaping future outcomes.
Predictive HR analytics allow you to anticipate risks, such as whether an employee is a flight risk, i.e., at risk of leaving the company. When you know what outcomes you want to avoid, you can adjust your business strategy with appropriate interventions, such as stepping up your talent acquisition process or addressing skill gaps.
With predictive analytics tools, you can take a big-picture view and move beyond Excel spreadsheets to enhance strategic planning. Many analytics tools feature customizable dashboards so you can visualize HR trends in an intuitive format. Predictive analytics won’t tell you what to do, but it can suggest actions based on the available data.
Predictive HR analytics may sound complex, but it’s really just a way of building on the decisions that your HR professionals are already making every day. Let’s take a closer look at some examples of how predictive HR analytics works in the real world.
First, predictive analytics has a key role to play in the recruitment process. Do you know what skills will be in-demand in your industry over the next decade? Or which recruiting channels are most effective at attracting top talent?
Predictive analytics uses historical data to identify which strategies or candidates were successful in the past so you can use that information to inform future decisions. With the right analytics software, you can streamline talent acquisition and spend less time and money on the recruiting process.
Every new employee needs to go through an onboarding process — but that process can vary depending on their existing credentials and skill sets. Predictive HR analytics tools can help you identify the most effective training programs for your workforce.
For example, you can use RapidBee’s AI-powered employee support platform to create a personalized onboarding training program for each new hire, track their certifications over time, and recommend specific training modules to address skill gaps.
Traditional performance management practices rely on annual performance reviews to take a snapshot of an employee’s performance. With predictive HR analytics, you can be more proactive and anticipate changes in employee performance over time.
Maybe an employee’s past performance identifies them as a candidate for a future job opening, or a drop in performance suggests an underlying issue with your workforce. Use analytics to improve the work environment and reduce the risk of burnout.
Employee engagement and retention are closely linked. Employees who feel aligned with your company culture and have sufficient professional development opportunities are at a lower risk of leaving, while high rates of absenteeism and disciplinary issues can indicate that they’re a flight risk.
HR analytics can help you understand why employees are leaving and take steps to retain them. Use analytics to reduce employee turnover by developing personalized employee retention strategies to retain high-performing team members.
Workforce planning involves everything from succession planning — such as preparing junior employees to take on senior roles — to upskilling, or retraining employees to use new tools and minimize skill gaps in your organization or industry.
Predictive analytics can help you anticipate these long-term trends so you aren’t caught by surprise by a senior employee’s departure or a staffing shortfall. Workforce planning ensures that you stay competitive in your industry, while also saving money by having the optimal number of team members on payroll at any given time.
Predictive analytics can improve decision-making and drive better business outcomes — but it comes with a few ground rules. Here’s what you’ll need to get started:
First, predictive analytics relies on historical data. That means you can’t start collecting data today and using it to predict business outcomes tomorrow. To be effective, you’ll need to digitize and analyze your existing data sets and break down data silos.
RapidBee’s fully customizable DataStores helps you organize and manage your HR data. With customizable fields and rules-based data management, you can import existing data sets and scale up your database as your organization grows.
Predictive analytics uses a lot of computing power, and relies on advanced technology like artificial intelligence and machine learning. By automating HR workflows, you can leverage cloud-based tools to make the most of modern HR technology.
RapidBee’s AI-fueled employee service center allows you to automate key processes like employee onboarding and attendance tracking. Plus, it integrates with your HRIS and talent management system for easy data-sharing and collaboration.
HR analytics should inform the decisions of your HR team, not replace human insight or oversight altogether. You’ll need to evaluate the effectiveness of your predictive models over time, and refine them if they’re out-of-step with real-world impacts.
By starting with a strong company culture, and respecting the humans behind the data, you can use predictive analytics to improve employee performance and well-being.
No matter how strong your recruiting and hiring process, analytics allow you to make better, data-driven decisions regarding your workforce. Predictive HR analytics uses historical data to identify trends and forecast future outcomes. Use these insights to attract new employees, retain top talent, and develop required skill sets.
RapidBee’s AI-powered employee service center helps HR teams make data-driven decisions at every stage of the employee lifecycle. Administer performance reviews, deliver engagement surveys, track certifications, and more.
Contact us for a demo and see how RapidBee can transform your HR department!