Predictive Analytics: HR Technology of the Future

Human Resource Executive Online released an interesting article a few weeks ago in which experts in the field were asked to look into the future and predict the hottest upcoming trends in HR Technology. Along with cloud computing, smartphones, tablets, and vendor-specific apps, they projected one of the biggest future trends in Human Resources to be predictive analytics.

The phrase “predictive analytics” refers to the process of collecting and analyzing data from different perspectives in order to categorize results, identify patterns, summarize the relationships involved, and make predictions for the future. For example, ever wondered why grocery stores give out those free plastic cards that you scan at checkout? Sure, they allow customers to get discounts on certain products. But they are also used for a key piece of the predictive analytics process commonly referred to as “data mining.” The store uses the cards to collect data on customers, analyze buying patterns, and determine strategies for better targeting their marketing campaigns and selling strategies.

The HRE Online article suggests that the same sort of data mining techniques you see at play in grocery stores will soon be commonly used in business HR departments. The article specifically suggests the following:

Predictive analytics has long been touted as a tool that will help HR departments achieve strategic importance within their companies. Predictive analytics has the potential to help companies craft better workforce strategies, but HR must first "have an understanding of what is meant by 'better,'" says Naomi Bloom, managing partner of Bloom & Wallace. "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."

By doing this, HR will be able to arrive at new insights that help the business move forward, says Yvette Cameron of Constellation Research in Denver. One company she recently worked with, 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.

Although the HRE Online article forecasts predictive analytics to be one of the biggest HR trends of the future, at PeopleKeys we’re already ahead of the curve. Our patented predictive matching technology uses a combination of DISC theory and predictive analytics to help HR departments make smart decisions when hiring and placing new employees.

PeopleKeys’ predictive analytics tools are used in the hiring process to:

• Provide information on the personality style of employees and new candidates (including their strengths, limitations, communication style, motivational factors, and team style)
• Use data from top performers to create benchmarks for open positions
• Compare, rank, and sort job applicants
• Generate comprehensive hiring reports for job candidates

Our human analytics tools have been developed specifically with HR departments in mind, and PeopleKeys is firmly positioned on the cutting edge of hiring technology.

Read more about using predictive analytics to hire smarter, not harder.