Predictive to Prescriptive: Talent Analytics moves up the Value Chain!
HR is Business and Business is HR
Many organizations are learning the truth of this line the hard way! He is bang on when Vineet Nayar says “Employees First, Customers Second”. It is only smart to take the best practices in customer management and apply them to your people.
Wondering how that could be possible? Its Analytics!
Target’s story of how they found out that their customer was pregnant before the parents’ did, has made ‘Recommendation Engine’ (Prescriptive Analytics) a hero of sorts. This has made many in the e-commerce industry jump with joy and on to the band wagon.
Now, coming back to Employee First. Why not apply this in the context of People Management? The possibilities and potential are innumerable.
Talent Analytics helps you leapfrog
Talent Analytics has gained popularity and we see many organizations putting the wealth of employee data to good use – to make fact-based, data-driven people decisions. It’s time they vaulted to the next level and played catch-up with customer analytics – which has successfully moved from predictive to prescriptive analytics.
While predictive analytics stops at providing causal relationships between disparate datasets, prescriptive analytics takes this analysis a step further and provides recommendations based on the predictions. By embedding a layer of artificial intelligence, HR could make highly strategic use of the analytics that they already have on hand.
Make it your competitive advantage
In a highly competitive recruitment market, retaining the people that you already have is also crucial. Imagine if you could figure out if a valued employee is likely to leave before he or she takes the step. Even better, what if you also knew what interventions to take to prevent this from happening?
Sounds too good to be true? Very possible with analytics and insights drawn from the employee data in your systems. Smart analytics could show you the factors that contribute to attrition – compensation, work hours, market factors, job satisfaction, determine what applies to the employee and suggest the next steps. In all likelihood, you could just end up retaining the employee – it is about striking when the iron is hot!
It keeps getting better
It doesn’t just stop here. How about knowing if the employee you made an offer to is going to join or not. Joining probability analysis helps you predict that. Prescriptive analytics can be used to define the risk factors and suggest preventive actions in different scenarios.
And, there is more. Power your learning and development system with analytics and artificial intelligence, you have a virtual L&D advisor. The system could help determine the logical career path of the employee based on his/her past records and future aspirations, identify skills gaps, suggest intelligent learning paths to bridge the gap. This way organizations could save both on external hiring and also reduce scrap learning (training that is inapplicable to the job).
Like we said earlier, the possibilities are truly endless!
Talent Analytics needs to be an integral part of the HR business for organizations to stay afloat in an increasingly competitive recruitment market. Analytics, simply as a dashboard has no value. It needs to enable managers with actionable insights to make smart decisions and boldly stride toward the future.
Leave us a comment to share your thoughts. We’d love to have a discussion with you!