Human Resources is a humongous area of study. Every HR Manager wants to hire the best at the least cost and make him/her sustain in the company for as long as it takes. But every day is not a Sunday, so people change jobs. This happens due to a variety of reasons. It could be traveling, a better package, work conditions etc.
Now in a company with a high number of employees there is a huge labor turnover cost, affecting millions to the company with respect to training the employee and making him ready to get into the arena. And labor turnover really hurts badly. What if there was a solution to this. What if you had an option to predict what is going it happen and shape the strategies accordingly? What if you could save this attrition without any damage control? No, the time machine is not yet invented. This is pure statistics, pure math, all in all very practical Predictive Analytics, as the name suggests is predicting a certain way of working or outcome.
It’ll tell you what will happen. All such complex calculations through various researches and analysis is done with the help of big data. Big data is a clear representation of a live statistics. It has volume, which means the content is vast. It has velocity, which means it happens in real time. Unlike traditional data, it’s dynamic. It has variety, which means you can use this data for various platforms. Big data comprises to the work conditions, performance, and various other factors.
Why is Predictive Analytics important with a Human resources perspective?
Employees are a major cost overhead for the organization. Costs incurred in acquiring, on boarding, training, performance and even attrition needs to be factored in. Information related to cost obtained from this analytics process can be used to identify critical operations, turnover, improve and tune any predictive data models.
Predictive analytics gives you a ton of data, a ton of information to give you the edge, the experience of dealing with the human resource on the whole. It helps you be multi-dimensional. It converts the ‘I think’
to ‘I know’
Human capital management is a vast enterprise, however the level of penetration of markets is less. This gives venture capitalists a huge playground to invest, and Predictive Analytics just helps it making it much more potent, much more profitable.
PERITIA 