Small Business Tips Blog
Every aspect of a business has analytics attached: Finance, logistics, sales, customer profiles, and marketing all have their own set of analytics tools. Though Human Resources (HR) also use some workforce analytics, until recently, analytics were not as data based. Workforce analytics are traditionally more intuitive, driven by ensuring knowledge transfer, the right skill sets are found, and on-boarding objectives are met. However, increasingly, companies want data to back up decisions made by their HR team.
Predictive Analytics, based on worker-based statistics, is becoming more and more appealing, allowing HR departments to be more strategic in predicting whether they will have enough resources next week, but also, have the right skills on their team three years down the road. The Globe and Mail reported in a recent article, “How to find and keep the right people,” Stantec is one example of a company investing in predictive data analysis to “use statistical models to identify trends and develop short- and long-term strategies for hiring, retaining and developing talent.”
Predictive analytics is a growing realm of HR analytics. According to Recruiter.com, traditional HR analytics is focused on turnover and cost per hire. However, companies, such as hardware and software experts, Oracle, provide an analytics system that will help companies compute potential talent problems down the road, and guide companies on how to hire, engage, and develop employees.
The increased attraction to HR predictive analytics is due in part to:
- The mass of information that can be collected online, from social media posts to purchases. If an employee is active on professional networks, such as LinkedIn, it’s possible they are looking elsewhere for work, for example.
- An increasing range of workforce analytics software and technologies that are becoming more accessible and available.
- The ability for companies to create algorithms from unemployment rate, GDP and growth, turnover rate and other workforce trends of specific geographies to predict their future human resource needs.
- The ability for companies to be more proactive in their hiring.
- To understand how to engage and develop employees so they will stick around.
IBM, Vancouver’s Visier Corp, and Oracle are only a handful of companies who provide work-force analytics systems and applications, and consultation in predictive workforce analytics.
Writing on the Wall
Johne, Marjo. “How to find and keep the right people.” The Globe and Mail 19 February, 2013: Report on Business B5. Print.