Data has always been the driving factor behind decisions. Informed business decisions rely on accurate information, and modern data practices and technologies allow for better access to and quality of that data. HR departments are finding that using analytics in their people strategy is having a positive impact by creating better results and helping to save HR professionals time.
What is predictive analytics?
SAS defines predictive analytics by saying, “predictive models use known results to develop (or train) a model that can be used to predict values for different or new data. Modeling provides results in the form of predictions that represent a probability of the target variable (for example, revenue) based on estimated significance from a set of input variables. This is different from descriptive models that help you understand what happened, or diagnostic models that help you understand key relationships and determine why something happened.” Essentially, predictive analytics examines past patterns against current standing and offers predictions and possibilities of certain outcomes based on that data. This can be especially helpful in HR, where trends and feedback over time help shape policies going forward, particularly around finding new talent and who makes the best new hires.
How can predictive analytics affect your recruitment?
Here are some of the benefits of predictive analytics in recruitment.
#Better understanding of which qualifications and requirements are associated with superior job performance
The predictive analysis makes it easier for businesses to know which qualities in a potential employee are most important to someone’s future success. By looking at the experience, education, and qualifications of past and present employees who have an overall track record of success, businesses can align on which characteristics are most important to focus on when hiring.
#Better assessment of soft skills, personality, and culture fit
Similarly, predictive analytics can help employers get a better sense of what soft skills are required for a certain position and align those with the necessary qualifications. It can also help assess personality, which is a key factor in understanding not just skill fit but cultural fit within an organization.
#Predicting which candidates may accept an offer
Predictive analysis helps businesses gather data to estimate which candidates are likely to accept or reject offers, based on the actions of past candidates. This can help save HR time on drawing up unnecessary paperwork or waiting on a response.
#Better knowledge of which recruitment channels are successful
Which job boards have brought in the best talent? Which roles hire faster than others? Do certain types of job postings attract more potential candidates? By looking at past performance data, businesses have a better understanding of which recruitment channels are performing to help save money on unnecessary communication and focus resources into the most effective recruitment methods.
Predictive analytics in HR can help redefine your recruitment process and help you source and hire better talent more effectively and more quickly. It helps companies compare candidates more accurately and helps businesses make data-informed decisions about who to bring on board. By focusing on what you know works, you can streamline your processes.
Of course, predictive analytics is limited. It can’t account for every variable, and like all predictions, is a guess – albeit a very educated one. It should not be the end all, be all of the recruitment processes. In fact, using only predictive analytics could lead to your business losing out on valuable talent. That’s why companies need to utilize it as a tool in their overall HR recruitment approach. While predictive analytics in HR absolutely still needs skilled, experienced HR professional oversight in the form of a real-life employee, it’s quickly becoming an important part of overall HR strategy and execution.