Picture being able to foresee your organization’s hiring requirements, identify potential skill gaps, and even foresee employee turnover before they decide to leave the company. Seems like a sci-fi movie, right? The good news, or bad if you oppose heavy reliance on machines, is that forward-thinking HR teams across the globe consider this a reality thanks to predictive workforce analytics.
According to a recent study by Deloitte, 71% of companies see people analytics—including predictive workforce analytics—as a high priority in their organizations. Why? Because predictive analytics helps organizations streamline their talent approaches while simultaneously boosting employee retention and minimizing costs associated with recruitment.
In this article, we will review the what, why, and how questions around predictive talent analytics and further discuss how tools like JobsPikr can help HR teams achieve and remain at the front.
What is Predictive Workforce Analytics?
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As the name suggests, predictive workforce analytics is the process of utilizing historical and current data to predict how the workforce will behave in the future. The same approach is used in finance to forecast stock and market movements.
In essence, predictive workforce analytics applies the concepts of predictive analysis to a business’s HR data enabling the organization to make informed strategic decisions about hiring, employee retention, and overall workforce planning.
For instance, HR teams could observe trends in employee turnover and predict which departments would have higher attrition rates over the next year. With this information, they can take pre-emptive actions like enhancing engagement initiatives or improving the overall benefits packages.
Why Predictive HR Analytics is a Game-Changer for Organizations?
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Let’s face it: From being just a “people department,” HR has transformed tremendously over the years. Today, it serves as a strategic function that enhances business performance, and the transformation is being powered by predictive HR analytics.
Here’s why it’s such a game-changer:
- Accurate Hiring Forecasts: Not having a clear image of how many employees you need each year is a problem of the past. Instead, predictive analytics will provide precise data forecasts, ensuring you are always ready to hire.
- Identifying Skill Gaps: Predictive tools can analyze current and future workforce skills needed, making it easy to pinpoint skill gaps so that they don’t become a problem later.
- Boosting Retention: Wouldn’t it be great if we could figure out which employees are likely to leave? With predictive analytics, employees who are at risk of leaving can be identified, allowing organizations the chance to take pre-emptive measures to boost retention.
In short, predictive analytics shifts the decision-making paradigm from reactive to proactive and enables organizations to save time, money, and resources.
How Predictive HR Analytics Help Organizations Forecast Hiring Needs?
One of the biggest advantages of predictive workforce planning is the ability to foresee workforce requirements. Companies can analyze data points such as:
- Historical hiring patterns to predict seasonal workforce demands
- Industry trends to anticipate skills shortages
- Employee performance data to identify future leadership candidates
For example, a retail company may realize that there is a hiring boom starting in November every year because of the holidays. Using predictive analytics, they can pre-plan their hiring processes to make sure there is enough staff to satisfy demand without handling last-minute hiring scrambles.
Another use case is in tech companies, where certain skills (like AI and cybersecurity) are in high demand. Using predictive workforce analytics, HR teams can proactively attract candidates with these skills before they become scarce.
Top Predictive Analytics Tools for HR Decision-Making
There are different features associated with different tools of predictive HR analytics and each has its own strengths:
1. SAP SuccessFactors:
It is an all-in-one HR information system (HRIS) that also offers workforce analytics, employee performance , and predictive modeling.
2. Workday People Analytics
Offers AI-driven insights for workforce planning, retention risk analysis, and diversity metrics.
3. IBM Watson Talent Insights
Employs artificial intelligence and machine learning to assist human resources departments in workforce trend analysis and insight development.
4. JobsPikr
JobsPikr stands in contrast to common HR software by offering real-time data from the job market. It has sophisticated analytics over job trends, skill demand, and talent supply which help employers accurately forecast the workforce with greater precision.
All of these tools contribute to predictive workforce analytics, although the correct option will vary from one organization to another.
How JobsPikr Delivers Real-Time Workforce Insights for HR Teams?
Speaking of JobsPikr, let’s take a closer look at how it’s helping HR teams stay ahead of the curve.
For those seeking a more sophisticated predictive workforce analytics solution, look no further than JobsPikr. The tool provides real-time analytics on the job market, talent supply, and hiring opportunities. JobsPikr equips you with everything needed to make educated decisions whether you are preparing for a seasonal spike in hiring or looking to fill a skill gap.
What sets JobsPikr apart is its ability to turn complex data into easy-to-understand, actionable insights. The platform’s intuitive design combined with bespoke reports means that every HR professional, regardless of their technical skill, can easily and effectively utilize predictive human resource analytics.
Real-World Use Cases of Predictive Workforce Analytics in HR
1. Talent Retention: Reducing Employee Turnover
Challenge: A company was experiencing a productivity loss due to a high turnover rate of mid-level employees.
Solution: Using predictive HR analytics, the company identified exit patterns, one being a drop in engagement scores six months prior to resignations.
Outcome: The company was able to reduce turnover by 25% after implementing mentorship programs and career advancement strategies.
2. Workforce Planning: Preparing for Future Hiring Needs
Challenge: Due to rapid growth, a tech startup had to scramble to make hires at the last minute, which stalled projects.
Solution: The company used predictive workforce analytics to review hiring patterns and establish a talent pipeline.
Outcome: The company was able to increase team effectiveness while decreasing time-to-hire by 40%.
3. Diversity & Inclusion: Improving Hiring Practices
Challenge: There was insufficient diversity among the leadership, affecting company culture and innovation.
Solution: Predictive analytics demonstrated there was bias in hiring and suggested improvement in recruitment efforts.
Outcome: The company was able to increase the diversity of its leadership by 30% in two years.
With all of these examples in mind, it is clear that predictive analytics empowers HR teams to address issues proactively rather than reactively.
Conclusion
Integrating predictive workforce analytics gives an edge to HR leaders. Rather than reacting to a problem upon its occurrence, they can foresee potential issues and resolve them even before they arise. From turnover reduction to ensuring higher diversity levels within an organization, predictive HR analytics is enabling businesses to rethink their approach to talent management.
JobsPikr is an example of how organizations can access real-time job market data and allow for more precise HR planning. As the nature of the workforce continues to change, organizations that utilize predictive talent analytics will always be a step ahead of their competitors.Would you like to ensure your HR strategy is prepared for the future? Sign up to JobsPikr today!
