Predictive analytics in HR – looking at the big picture (Article 2 in this series of 8)

Predictive analytics is a powerful tool, and it can achieve a lot within HR. A large part of where this potential comes from is the ability to connect HR, and in particular recruitment, to the bigger picture.

Planning recruitment

While approaches to recruitment vary, it is often a hand to mouth affair. As posts fall vacant recruiters get to work filling them, and hope that suitable recruits can be brought on board without the post sitting vacant for long.

Big recruitment campaigns might be undertaken in advance of sales pushes or significant changes, but they are just as likely to be reactive. Perhaps a change in the market drives more business, or there is a shift in the sort of business you’re doing. This leads to a period when staff is over-stretched, then a delay while you recognise a long-term trend, then a further delay while people are recruited. This is damaging for morale and leads to wasted opportunities.

Predictive analytics can allow a more forward thinking approach. Algorithms draw on factors such as GDP, growth, employment rates, regional workforce trends and staff turnover to predict future recruitment needs, allowing you to recruit in advance and make the most of opportunities without over-burdening your workforce.

This isn’t outside the capability of any firm. Sales forecasts, already a significant tool, can be used to predict expansions in business and the quantity and quality of staff needed for this. And from there, more rigorous analytics can be developed.

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Article 1: Predictive analytics – looking to the future in recruitment