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3 Practical Ways to Use HR Predictive Analytics

HR predictive analytics
Alexandre Diard
HR predictive analytics

As technology expands, your company needs to keep up to date with the latest technological trends! Technology can help your business create data-driven decisions that reduce risk and enhance your productivity. One way that businesses are doing this is through HR predictive analytics. Predictive analytics is the use of statistical analysis by extracting past data to predict the likelihood of future events or trends.

HR predictive analytics can give businesses a competitive advantage in hiring and recruitment processes, especially since the majority of businesses do not use the people data they collect. There are many benefits to using predictive analytics in HR, such as reducing risk, foreseeing potential issues, and deploying data-driven decisions that positively impact your employees.

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What is HR Predictive Analytics & What is it Used for?


HR predictive analytics can be a real game-changer in the business world. Through the use of existing data, human resource professionals can forecast and predict the outcome of many different decisions for your company. The HR department can use HR predictive analytics to recruit top talent, retain valuable employees, and improve employee satisfaction.

Human resource departments collect a lot of employee data, such as promotions and absences, through HR platforms. However, only 52% of companies use predictive analytics they collect. Many businesses do not realize the competitive advantage that they could have by analyzing the data they already collected.

When companies analyze the data collected, they are using HR predictive analytics to boost employee retention rates, improve diversity and equality in the workplace, and upgrade their recruitment processes.

Boost Employee Retention Rates

Predictive analytics can be used to visualize data that has been collected in your company. Through the use of data visualization, HR professionals can view dashboards that will certainly help your data analyst tell a story about the data collected. The patterns observed can lead to answering many questions that your company may have, such as why is our turnover rate higher than average?


A Case Study


A commercial banking firm, answered the same question through the use of past data they collected. Data scientists investigated what branches, roles, and regions the turnovers were happening at. They soon found that 41% of their turnovers were occurring at only 10% of their branches. Through the insight collected, HR professionals were able to create plans that addressed the branches struggling to retain employees. Since they created plans based on data, they reduced their turnover rate by 44%. The organization was able to save money and time since they did not address the issue nationwide, but only in the regions that needed alternative plans.

The company was able to address past problems through data, but they are now also able to predict employees that are likely to leave the company which allows the HR department to focus their effort on retaining high-risk employees. Ultimately, this case study shows the power that predictive analytics can have on your company. Retaining employees does not just save future onboarding costs but can also retain customer relationships and employee advocacy that could impact your future employee applications.


Improve Diversity and Equality

A diverse workplace can cultivate an inclusive community and increase your company’s productivity rates, range of skills, and reputation. Embracing and celebrating differences has become a unique strategy that many businesses are deploying to improve employee satisfaction and turnover rates companywide. One way to ensure equality in your workplace is through the use of HR predictive analytics. The use of predictive analytics to solve the workplace DEI (Diversity, Equity, and Inclusion) challenge is underused, but may see a rise going forward as companies realize the importance of work culture and inclusion.

By using data, your human resource department can gain insight into salary pay gaps based on race or gender, who is at risk of resigning, and more. If your data is portraying that minorities are less likely to be hired, promoted, and more likely to resign, your company may need to reevaluate its processes to become a more inclusive work environment.

Through the use of analytics, your company can also identify patterns that may be harming minorities and the work culture at your organization. Along with forecasts, data can also pinpoint where there may be unconscious bias in the recruitment or hiring process. It is extremely important to ensure diversity in your company’s workplace since 76% of job seekers prioritize diverse workplaces when searching for jobs and diverse companies are earning 2.3 times higher cash flow per employee. Your company can retain top talent, recruit innovative employees, and see a rise in sales, productivity, and inclusiveness in your workplace by using predictive analytics to promote diversity.


Upgrade Recruitment Processes

While looking at LinkedIn profiles and resumes are a great way to gain insight into potential candidates, recruiters are finding intuitive paths to ensure the candidate will be successful in their position. Human resource departments are using HR software to study past employee data to predict the performance of job candidates. Certain software can evaluate soft skills, classwork, and previous work experience to predict the success of an individual that recruiters are interviewing. The forecast can help recruiters and HR address weak areas within interviews or confirm whether to continue with the candidate.

This upgrade in the recruitment process could potentially save businesses thousands of dollars in onboarding and offboarding costs, as well as in productivity. Using data-driven software and people data can help speed up the recruiting process which can be really beneficial within the race for top-level talent. As seen this year, talent acquisition and the hiring process is extremely competitive, so finding ways to combat losing amazing candidates is dire.



HR predictive analytics is a wonderful tool that should be used by companies all over the world, but many are not. Make sure to use data to your advantage in order to hire top talent, retain valuable employees, and improve equality efforts companywide. To step up your predictive data analysis abilities, consider using data consolidation. When consolidating all of your data into one HR platform, you will be able to view all of your employee data from a singular place and make meaningful data-driven decisions with predictive analytics.

An easy way to accomplish this is through PeopleSpheres, an HR management platform that automates and unifies all HR processes, including customizable HR dashboards and search engines. PeopleSpheres allows your HR department to keep tabs on KPIs that matter to you and evaluate the information daily, weekly, or monthly. Gain confidence in your hiring process, retainment efforts, and employee experience through using a centralized HR database that is fully customizable to fit your company’s needs.


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