Early predictive analytics in the Marketing Department used predictive analytics. They used it to predict what number of online courses they’ll have to direct to get 1,000 new prospects in their prospect database. Or, the amount they’d have to spend on showcasing the effort to motivate prospects to click on a coupon. Or, they could foresee that client engagement would go up if they gave a discount on a Friday. Once more, this is a promoting objective, not a business objective. Business needs to reliably predict what number of individuals would purchase (not click) utilizing this coupon versus that one. When marketing predicted real business results, assets, visibility and financing rapidly got to be accessible.
Best Approach for Successful Predictive Workforce Analytics
When Marketing could demonstrate a predictive project that could recognize what offer to make so that a client purchased and sales revenue went up – business leaders took notice. They took such close notice that they highlighted what Marketing could do, they gave Marketing more resources and funding. Marketing used to be a business, but the condition no longer the same. HR needs to follow the same approach.
Is it workforce analytics, people analytics, talent analytics, or something else entirely? It doesn’t make a difference what you call it – the fact of the matter is that predictive workforce analytics need to address and predict business outcomes not HR results.
Division of Strategic Predictive Workforce
Like marketing learned over the time, when Human Resources starts predictive analytics projects, they have to approach the specialty units they support. Also, they have to solicit them what sorts from challenges they are having that may be influenced by the workforce.
There are 2 basic categories for strategic predictive workforce projects:
Quantifiably reducing employee turnover in a specific office department
Quantifiably expanding specific employee performance in a specific department (i.e. more sales, fewer errors, etc.)
Once the employee joins the organization, the business starts pouring out significant cost into the employee regularly. These are:
a) their compensation and advantages
b) preparing time while they increase to speed and deliver next to zero quality.
Analytics work measuring true replacement costs show that even for entry level roles a conservative replacement estimate for a single employee.
A good example is to consider the credit industry. Imagine them lending credit to somebody for a home loan – and afterward applying analytics after the home loan has been reached out to foresee which contract holders are a good credit risk. Now, this would be ludicrous. They just did the thing the bank can do after the relationship has started to attempt to mentor, train, support, change the installment arrangement and so forth. It’s past the point of no return after the relationship has started.
Predicting credit risk is predicting human behavior. Predicting who will make their sales quota, who will make happy customers, etc., –is foreseeing human behavior.
HR needs to understand that predicting human behavior is a complicated arena. It has many years of experience and time to sharpen approaches, algorithms and sensitivity to private data. Predictive workforce analytics isn’t too difficult, but it’s important to realize it is not that easy either.