Predictive analytics is top-of-mind for business leaders everywhere, and for good reason. It’s transforming the way that businesses operate, and it’s applications are practically limitless.
Organizations of all kinds, from finance and healthcare to retail and marketing, are finding new and innovative uses for predictive analytics. It’s time for HR to catch up. Here are the three top reasons to move predictive analytics to your must-have list this year.
1. Drive superior decision-making.
Predicting trends and future events has always been the holy grail of business success. Predict the future, and you’ll know which products will be in highest demand and which solutions will be most successful, you’ll know when you’re going to experience shortages and surpluses, and you’ll know which opportunities to purse and risks to avoid.
Predictive analytics brings precision and accuracy to your predictions like never before. With big data and predictive algorithms and your fingers tips, you’ll be better positioned to predict employee performance, turnover risk, or any of the key metrics that impact your bottom line.
2. Shift your strategy from reactive to proactive.
Why report last year’s numbers when you can report next year’s numbers? Predictive analytics provides a vantage point that’s far superior to basic, or even advanced reporting.
For example, you probably report your organization’s annual turnover rate. With predictive analytics, you can predict and prepare for turnover and talent shortages. Not only that, you can also avoid turnover by calculating turnover risk in order to avoid hiring high-risk candidates, and to better retain high-value employees.
3. Stay ahead of your competition.
Predictive analytics has become the gold standard in business intelligence, and early adopters are already reaping the rewards. In the retail space, companies like Whole Foods are quickly adopting this data-focused model to keep up with competitors like Kroger, which uses predictive analytics to power its best-in-class loyalty program and drive impressive same-store sales growth and market share gains.
For HR leaders, the competition is for talent. But it’s also within your own company, to prove yourself capable of the strategic visioning and problem solving that C-suite leaders have come to expect from HR.
Here’s what Josh Bersin had to say about it in last year’s Deloitte report on HR Technology Disruptions for 2017:
The reality is, companies should double down on their investments in analytics and pay serious attention to this area… Companies that don’t are likely to be disrupted by competitors that do.”
For more insight on how predictive analytics is different from the data analysis you do already, and how you can start driving results using predictive analytics, download our eBook: The Essential Guide to Predictive Talent Analytics. Or, watch our webinar: The Future of HR: How Predictive Analytics is Changing the Game in 2018.