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Glimpse Into the Future Using Predictive HR Analytics

Develop an analytical perspective in HR to support evidence-based decision making that drives organizational success.

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  • Chris Hodge, AVP - Talent Management, RoundPoint Mortgage Servicing Corporation
  • Dr. John Sullivan, Professor, Corporate Speaker & Advisor
  • Irwin Jankovic, Ph.D. Strategic Program Manager, Human Resources Group, Metropolitan Water District of Southern California
  • John Pensom, CEO & Co-Founder, PeopleInsight Workforce Analytics
  • Nadia BiFolchi, Ph.D.
  • Zev Smith, Director HR Strategy & Talent Acquisition, Tangerine
  • 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.

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.

Research & Tools

1. Understand project rationale

Realize the importance and relevance of predictive HR analytics.

2. Prepare to apply predictive analytics

Understand the new skills that are required for predictive analytics and assess the department’s analytical readiness.

3. Connect HR analytics to organizational outcomes with impact maps

Identify key organizational objectives and create a direct connection between the HR action and the bottom line to highlight the impact of each analytics initiative.

4. Create an integrated predictive analytics agenda

Prioritize analytics initiatives into a high-level timeline and create a detailed action plan for the first initiative.

Guided Implementations

This guided implementation is a six call advisory process.

Guided Implementation #1 - Prepare to apply predictive analytics

Call #1 - Review the relevance of predictive analytics and discuss the skills required to perform them.
Call #2 - Discuss the results of the readiness assessment and plan next steps.

Guided Implementation #2 - Connect HR analytics to organizational outcomes with impact maps

Call #1 - Review selected organizational objectives. Discuss the predictive analytic examples and begin brainstorming ways that HR could impact organizational goals.
Call #2 - Discuss the outcomes of the brainstorming session and design one impact map.

Guided Implementation #3 - Create an integrated predictive analytics agenda

Call #1 - Review the challenges of data and discuss the potential tools that could be employed. Outline the steps for the forced ranking exercise.
Call #2 - Discuss the results of the forced ranking exercise and review the steps to complete the first initiative.

Search Code: 77933
Published: July 6, 2015
Last Revised: July 6, 2015