Predictive analytics can help companies with better workforce strategies. For example, in order to make better hiring decisions, we need to have crystal-clear understanding of what those holding the position are expected to accomplish, a profile of an individual who could be successful in that position and then, you have to be able to look at a total stranger and determine, based on that profile of success, whether they’ll excel in that position. That’s not so easy to do.
The significant value of predictive analytics for HR actually lies beyond simply analyzing HCM data.
Predictive analytics is not going to be driven by traditional HCM vendors. Think about what’s happening in the customer-relationship-management space, where they’re analyzing the tone and frequency of conversations customers are having about a company and its products to really understand how people feel about it — if you apply that internally, you can really change the game.
By doing this, HR will be able to arrive at new insights that help the business move forward. One company, for example, combined and analyzed data in this fashion to create a profile of its most successful salespeople. Among the findings was that its most successful salespeople returned 80 percent of their emails within a set amount of days.
“In the years to come we’ll see HR become more and more integrated with the technology infrastructure of the company while utilizing outsourced technology solutions to make the day-to-day tasks of managing human capital more efficient,” says Brian Roland, President & CEO of Abenity.
“Everything from payroll to employee perks, and benefits enrollment to recruitment will happen 24 hours a day in an online atmosphere that encourages collaboration, reduces redundancies, and encourages human resource professionals at all levels to focus on strategic level work that moves the business forward while minimizing isolated and disruptive tasks,” says Roland.
“The core of the organization will be reduced to a few hundred people focused on core functions such as marketing, product development, and executive duties.
Depending on which platform you choose, Taleo (now owned by Oracle), Ultimate Software, and Workday all have compensation and succession planning offerings which integrates nicely into a firm’s HR technology. The tools are designed just for the manager, complained Steve Guine.
“Ideally, I would like to see a totally automated environment which allows the manager and employee to control the levers of employee careers paths and measurement,” says Guine.
It gives both parties the power to impact the future of their role in the company. It can reduce turnover, and entry-level positions can truly be seen as a real gateway for employees to map their careers.
While we’ve yet to see automated technology do this, we have seen companies work with employees to map out their future. Zappos refers to the method as “The Pipeline.”