- As the business environment increases in complexity, an improved ability to make evidence-based decisions is an indisputable competitive advantage. Predictive analytics can add another layer of insight so that organizations are able to make more informed decisions.
- Currently, HR departments track metrics and perform descriptive analytics, but very few are leveraging the value of predictive analytics as they are:
- Lacking the requisite skill set.
- Struggling to combine disparate data sources and gather organizational data from siloed business units.
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Our Advice
Critical Insight
- HR can overcome the challenges of predictive analytics as a team: one member of the team can “crunch the numbers” while the other interprets, analyzes, and applies HR acumen.
- Although many HR departments have expressed interest in applying predictive analytics, very few are actually doing it. The challenge remains in finding examples of those organizations who are doing it well, to emulate their process.
- If an organizational objective or goal has stagnated, focus HR analytics on a component of the problem to maximize value-add.
Impact and Result
- To develop predictive analytic capabilities, HR must begin to hire different skill sets and pair statistical knowledge with HR analysis.
- HR must avoid scanning mass amounts of data, and instead:
- Work with the organization to identify key organizational goals and objectives.
- Identify what insight will help with the progression of key goals/objectives.