Hiring the best people for an organization can make or break its success, but the cost to find, train and retain top talent adds up. Companies can gain an edge by ensuring they match with suitable candidates who want to work for the brand and will remain loyal with predictive analytics.
What Is Predictive Analytics?
Predictive analytics takes massive amounts of data and taps into the power of machine learning to forecast behavior based on patterns in past purchases and user demographics. Some information the system might look at includes buyer age, income levels, browsing and buying behavior, and gender.
A human might need weeks to sort through reports, but a computer can analyze them and spit out results for further brainstorming in a few minutes. Computer-generated analytics tend to find similarities and note small details people sometimes miss.
How Businesses and Recruiting Managers Can Use Predictive Analytics for Hiring
According to Gartner, a mere 21% of HR leaders believe their enterprises utilize talent data effectively in recruiting. Unfortunately, many still use the “who you know” model of hiring. People with a lot of charisma sometimes stroll into positions they aren’t truly qualified for, while candidates with real skills and determination get overlooked due to quieter personalities.
Tapping into the power of predictive analytics frees up managers and recruiters for more in-depth interviews and screening. Those they might otherwise overlook move to the top of the resume pile. Here are the top benefits of using predictive analytics.
1. Find New Recruiting Sources
Companies tend to go back to the same sources repeatedly. After all, why fix something until it breaks? Unfortunately, the approach of utilizing traditional methods could leave a gap in hiring practices.
Reaching candidates in new ways can open the door to better-qualified applicants. Utilize AI to sort through data and identify the top places a brand’s best performers came from. Uncovering new options for advertising open positions and reaching new candidates is also possible.
2. Reduce Employee Churn
Tap into the power of data analysis to reduce employee turnover. The longer an excellent team member stays, the more money the organization recoups on the initial hiring investment.
AI helps by revealing untapped knowledge in videos, images and other sources, which makes up about 80% of enterprise data. Utilize predictive analytics to estimate how long a particular demographic will stay or which personality types thrive in the current culture. Gathering a fuller picture lets brands be more competitive.
3. Embrace Diversity
Businesses can also analyze staff data and figure out where they are missing diversity. Pay attention to race, gender and age. A diverse workforce thrives because each person brings a unique viewpoint.
If the employee demographics are skewed in a particular way, what new places can job postings occur to bring in a more diverse workforce? Bias in hiring practices gets reduced when a machine sorts through applications and resumes with an eye for skills rather than other details.
4. Improve the Quality of New Hires
The use of predictive analytics grew by about 50% between 2019 and 2022, according to one survey. It also revealed over 40% of companies fail to use any type of workforce analytics. A brand that taps into the power of analytics for talent acquisition will soon pull ahead of its peers.
Take the data on current employees, their skill sets, psychological profiles, education, demographics and other personal factors, and allow AI to develop a list of qualities to look for in new hires. Analyzing data improves the quality of new hires by avoiding past mistakes and repeating wins.
5. Create Better Candidate Offers
Enterprises can also use the data to determine a fair offer for a candidate and predict what others may provide. If a brand can meet or beat what its alternatives put in their offer letters, even a smaller brand might secure a candidate with stellar skills.
Offer the same pay, benefits and days off but up the ante with unique offers bigger corporations might not have. Flexible work schedules, volunteer opportunities, on-site daycare or other perks can make an offer more attractive to top candidates.
Changing the Face of Talent Acquisition
How organizations utilize predictive analytics in HR makes a difference in retention and filling open slots with qualified candidates. Companies must embrace the changing face of machine learning to stay caught up with fellow businesses. To remain competitive, quickly analyzing data, predicting best next steps and pivoting when necessary is vital.