HR Predictive analytics concept dreamstime l 267270219 Pivotal HR Solutions Blog

Transforming HR with Predictive Analytics: Reducing Hiring Risks, Improving Retention and Boosting Productivity

If you’re an HR manager or a small business owner contemplating maximizing your management of human resources, it’s worth considering predictive analytics. This powerful tool, a blend of technology, statistical methods, and workforce data, gives you the ability to forecast future HR trends and make proactive, strategic decisions.

Outsourcing HR Management Services that harness predictive analytics can lend remarkable flexibility to your operations, fitting into your evolving business dynamics like a puzzle piece.1

Quick Facts on Predictive HR Analytics

  • In HR, predictive analytics can be used for talent acquisition, performance management, learning and development, and retention strategies. [source:SHRM]
  • Predictive analytics can help HR managers make data-driven decisions and improve business outcomes [source: SHRM]
  • Predictive analytics can help HR managers identify high-performing candidates, predict future labor needs, and identify employee retention risks. [source: SHRM]
  • The use of predictive analytics in HR can lead to more objective and fair hiring and promotion decisions. [source]
  • Predictive analytics can help HR managers identify skills gaps in their current workforce and plan for future training needs. [source: SHRM]
  • Outsourced HR management services can provide businesses with access to advanced predictive analytics tools and expertise.

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 Benefits of Predictive HR Analytics

  • Reduce Hiring Risks: HR managers[2] using predictive analytics can anticipate the skills that will be needed in the future, enabling them to act proactively and minimize the risk of hiring wrong.3
  • Improve Retention: It gives insights into factors influencing staff turnover, allowing you to take corrective measures before it’s too late.4
  • Boost Productivity: With its capability to identify the drivers of team and individual performance, predictive analytics lets you strategize interventions that could elevate productivity.5

The Role of Predictive Analytics in Streamlining HR Processes

As a HR manager or business owner, the ability to predict or foresee the impact of your decisions before they occur is invaluable. HR Predictive Analytics can help you guide everything from talent acquisition, employee retention, to formulating effective policies or creating an ideal work environment.

As pointed out by McKinsey, data-driven strategies have become a major differentiator for businesses, and HR departments are not exempt from this transformation.

“Predictive analytics can enhance human decision making… they can give HR a seat at the table by demonstrating how human capital decisions affect the business.” Forbes Technology Council, 2019

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Analytics Does Not Replace Human Judgment

Deploying predictive analytics in your HR processes isn’t about replacing human judgment; rather, it’s about enhancing it. For instance, predictive analytics can assess applicant data and streamline the hiring process, ensuring only the best prospects are prioritized. Similarly, insights derived from predictive analytics can help identify and counteract reasons for employee turnover. The value of predictive analytics in HR lies in its ability to anticipate outcomes and the effects they’ll have downstream.

Outsourced HR management services with capabilities in predictive analytics can offer flexibility and specialized expertise. These service providers can help your business harness the power of predictive analytics while also shouldering the intricacies of HR management, thus freeing up time and resources for your core business operations:

  • Predictive analytics can enhance decision-making by providing data-driven insights.
  • It can streamline HR processes by enabling faster, more efficient hiring, and better management of employee turnover.
  • Utilizing outsourced HR services with predictive analytics can provide flexibility and expertise, allowing internal resources to focus on core business operations.

Data Points on Predictive Analytics

A Look at Predictive Analytics in Action

Predictive HR analytics is transforming HR management, especially for small and medium enterprises (SMEs) in Canada.

Predictive analytics leverages historical and current HR data to make predictions about future outcomes. It can clone the mind of an HR manager, analyzing the past to shed light on future events. As reported by, using predictive analytics can offer powerful insights to HR management. This includes talent acquisition strategies, turnover rates, employee productivity, and engagement levels.

For example, in talent acquisition predictive tools can analyze a candidate’s potential from multiple data points, such as their skillset, career history, and even personality traits. This data-centric approach eliminates bias in decision making, helping you to hire the right talents for your organization.

Predictive analytics can also be hlepful in reducing employee turnover aspect, helping identify patterns or behaviors that suggest an employee is about to leave. Imagine the benefits – you can curb high attrition rates, retain your talented workforce, and save thousands in recruiting and training costs.

A report by IBM revealed that predictive analytics also assist with performance management. By tapping into the wealth of performance data available, you can understand what drives employee productivity, enabling you to fine-tune your leadership strategies and improve overall business outcomes.

For all its advantages, the skills of a Professional Human Resources Managers is needed to parse the data presented in predictive analytics, considering the importance of human intuition and experience in decision-making. Predictive analytics does not replace human judgment. Instead, it empowers managers with an enriched perspective and context, while they still get to make the final call.

To find out more, contact the experts at Pivotal HR Solutions.

Do you have questions? Contact the experts at Pivotal HR Solutions

Contact HR

HR Predictive analytics concept dreamstime l 267270219 Pivotal HR Solutions Blog
  1. Smith, M. (2020). “The future of HR: Predictive analytics”. HRD.

2. Pivotal HR Management

3. Sharpe, S. (2021). “The Future of HR – Predictive Analytics”. ClearCompany.

4. RSA (2019). “Predictive Analytics in HR”.

5. Santoso, E. (2021). “Predictive Analytics in HR”. Datafloq.

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