BUSINESS ADVANTAGES OF UTILIZING HR ANALYTICS

Abstract

Usage of predictive analytics is lifting its head in the HR area. As predictive analytics in general is not yet widely used in India, the companies are cautious in taking the first steps towards this capability. The purpose of this study is to explore and identify the possible business benefits of implementing predictive analytics into the HR area. The basic building blocks needed for predictive analytics are also covered, as well as the main challenges companies identify, in order to understand what could be hindering the analytics evolution in the HR area. Predictive analytics aims to understand the past but also complements it by understanding the correlations of the key activities, estimating the future and predicting probabilities for the whole employee lifecycle- recruiting success, employee management risks and employee retention. This new capability delivered though predictive analytics is meant to help today’s HR professionals to make better decisions related to HR activities, accelerating the processes and by eliminating the error of the sole human interpretation.The main benefits perceived from the study were very company specific. Each companyneeds to decide what is of core value for them and take action accordingly. However, all companies saw great value in using the predictive analytics in the HR areas they identified to have the biggest business challenges in. Additionally, the following common business development possibilities for predictive analytics were discovered- increasing employee engagement, decreasing employee turnover and recruiting the best candidates and right amount of workforce for the future needs.