Big data predictive analytics: Only 4% perform predictive analytics about their employees
Big data predictive analytics
Research related to big data predictive analytics show that only 4% of companies have achieved the capability to perform “predictive analytics” about their employees.
Big data: Predictive analytics leads to higher stock market returns
An interesting conclusion around these 4% of companies that perform predictive analytics is that “their stock market returns are 30% higher than the S&P 500, and their leadership pipelines are 2.5X healthier”.
Business analytics in HR usually involves looking at past data and analyzing what happened.
It’s not that what happened 2 years ago doesn’t matter, it’s just that taking into account what happened yesterday or even today might be a stronger driver when it comes to putting together predictive analytics models for HR.
By staying up to date with how the employee mood goes up and down at work you can take preventive action in order to retain talent and maximise profits.
We humans are typically prone to be overconfident when it comes to predicting: we simply like to be right.
Paul Meehl and William Grove digged into 136 research studies to compare the predictions of humans, a lot of them ‘experts,’ against predictions born out of algorithms and data.
The power of predictive analytics beat the human’s intuition by far.
Only in 8 cases out of 136 where humans clearly better at predicting. The researchers even questioned these 8 wins, speculating that in these cases the people were “provided with more data than the actuarial formula.”
Do your managers really know how their employees feel about their workdays?
In our experience after measuring employee engagement with a device every day for the last year…. most managers would be surprised.
Sometimes very surprised.
In any case you can put a number to your employee morale, and you have the chance to do something about it before it gets worse and your employees start leaving.
Is your gut feeling enough?
This famous quote from 1883 is still valid:
“When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind. It may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science, whatever the matter may be.”
Sales and marketing have used predictive analytics to predict trends for a long time, and it’s spreading fast into areas such as HR.
Tapping into predictive analytics
Research shows that profits are predicted by employees’ feelings about the company at earlier points in time.
So how happy are your employees at work this quarter compared to the last? There is a big difference between “I think” and “I know”.
Thanks to new technology like that gives real time employee feedback you can discover the need for improvements in your organization with minimal effort. You can identify the relationship between your happiness level and company events, management’s actions or initiatives.
Knowing how your employees have reacted in the past and where you stand today helps you identify patterns and understand what works in your work culture, and what doesn’t.
Read more about how you can increase employee retention and engagement through an ongoing People KPI.