Predictive Analytics in HR: 5 Predictions

By Scott Mondore, co-founder and managing partner at SMD

Everyone can probably agree that predictive analytics is not going away (it's a good thing, too because leveraging the approach properly will behoove an organization). The following are predictions about how this approach will impact HR leaders, their organizations and the HR field in the future.

The Data Balancing Act

HR will still struggle with the balancing act in 2017. That means that there is a balance between just having more data and having the right insights from the data. Think about all the data HR already owns: HRIS, employee surveys, 360 feedback, candidate data from an ATS, performance management ratings, etc. The reality is that a lot of data already exists, and many practitioners will continue to have an insatiable—and unnecessary—need for more data.

If this prediction comes true in your organization, remember that your real need is to harvest the power of data to identify drivers of outcomes. HR functions are better off leveraging the intelligence from the data they have than racing to gather more data.

Adoption and Change Will Be Slow

The adoption of predictive analytics in the HR world will be relatively slow in 2017. This may not seem like a bold prediction, but it’s certainly worth discussing. Think about it: many HR professionals went into HR because they love working with and helping people. Not as many chose HR because they love numbers and statistics. So, many HR professionals understand that analytics can greatly help HR contribute more to the bottom line, but they may not have the proper skills to effectively apply analytics.

A Competitive Advantage with ROI … for Some

HR organizations that use analytics the right way will have a significant competitive advantage because few will do so quickly. Below is a list of reasons that will drive—and almost force—HR to achieve this competitive advantage:

Quizzical CEOs: One day soon, CEOs will start asking CHROs “What exactly is the ROI of all these surveys and assessments?” The only way to identify the ROI is through the application of analytics.

KPI confidence: HR will stay in its comfort zone for a while by focusing on KPIs such as turnover. That’s because turnover is a key metric with real costs and one that HR feels comfortable owning. Eventually, most organizations will start to show direct business impact on other KPIs, such as sales, revenue, productivity, operations, and customer satisfaction.

Bad Analytics Leads to Bad Business

There are lots of vendors jumping on the analytics bandwagon. Most of these tools and approaches use very basic methods and don’t connect results directly to business results. Others are pushing new approaches based on machine learning and algorithms. These may be truly innovative, but be very careful in this area. Remember that one of HR’s primary roles is risk mitigation and that some of these “new” approaches introduce very real risks.

Demand for Analytics Skills Will Grow

There’s already a massive shortage of HR professionals that lack skills in analytics. The demand for expertise in this area will continue to grow in 2017.

Statistics surge in schools: HR educational programs will emphasize statistics and data analysis.

Skill set search: Organizations hiring for HR roles will increasingly seek out candidates with these skills. HR leaders don’t have to be statisticians, but they must understand the application of analytics and be good consumers.

Are you I/O?: Demand for I/O psychologists in HR functions will skyrocket (and in fact, is already occurring). Predicting human behavior and performance is very difficult and complicated. I/O psychologists know how to do this – hence the increased demand for their skill sets.

How Video Interviews are Changing the Way HR Departments Hire Employees

By Paul Knapp, Corporate Recruiter, Balboa Capital

Historically, if an HR manager needed to fill an open position, they would sort through matching resumes, conduct formal phone screens, and set up in-person interviews with qualified candidates. But in many cases, getting in touch with candidates and screening them over the phone is very time-consuming. Today, video technology is making the entire interview process easier and more efficient for HR managers and job seekers alike. Now, HR managers can screen more candidates in less time, and job seekers can participate in live interviews without having to sneak out of the office or taking long lunches.

Saves Time, Increases Efficiency

Live video interviews can help HR managers save time and be more productive. This is welcome news for busy HR managers whose responsibilities include tasks outside of recruiting, interviewing, and selecting employees to fill open positions. An HR manager doesn't even need to be a technology expert to use today’s video interview options. There are a variety of free and paid video applications and video chat systems that are easy to set up and use. A computer with a webcam, a microphone, speakers, and a high-speed Internet connection is all that is needed. Additionally, most online video platforms work with iOS and Android mobile devices.

Simple and Effective

Setting up a video interview is a simple task; it involves calling the candidate to confirm receipt of their resume and cover letter and establishing a mutually convenient time for the live video interview. An email reminder should be sent immediately after the call, and again, one day prior to the video interview. To get the video interview started, the HR manager sends an email that contains a link that provides the candidate access to the interview. The live video interview is similar to an in-person interview; the candidate answers a list of pre-determined questions using a webcam to record the interaction.

More Convenient for Job Seekers

Live video interviews eliminate the need for prospective employees to drive to and from the offices of companies they are interested in. These candidates are likely to appreciate the convenience of video interviewing and the ways that it can help them keep their job search private. They won’t need to dress up and leave the office for extended periods of time, which might look suspicious to their colleagues and managers.

Saves Money for Companies

For companies considering candidates who live far away, live video interviews can benefit the bottom line. Live video enables face-to-face contact and open interaction, which means the fuller selection of applicants won’t have to be flown in. This eliminates the cost of plane tickets, taxis, hotel rooms and meals. Video interviews can also be saved, which allows HR managers to share them with colleagues and managers to collectively decide the finalists that can be flown in for in-person interviews.  

Differentiates a Company’s Brand

Technologically savvy. Cutting edge. Innovative. These are some of the words used to describe companies that conduct live video interviews. Inviting job seekers to interview via video can help a company stand out from its competition. It conveys a forward-thinking culture, which can be very appealing to today’s workforce and particularly to millennials. Job seekers appreciate the personalization and convenience of live video interviews. Many candidates prefer this experience to showing up for an in-person interview and finding five other candidates competing for the same job.

In 2017, HR departments will continue to evolve and align more closely with their companies’ strategic goals. Hiring the right employees is a critical step towards business growth and success, and video technology will continue to play an important role in this task. Live video interviews will continue to be embraced by companies who want to recruit top talent locally, and from around the country.

HRO Today Forum EMEA Starts Tomorrow!

We at HRO Today are very pleased to announce that our annual HRO Today Forum EMEA in Edinburgh, Scotland will begin tomorrow, Nov. 8!

The central theme of this year’s event is Be Connected! – HR Technology, Services and Leaders Unite. As technology continues to become more prevalent and integrated in daily life, leaders are learning to adapt and rethink the way their businesses attract, retain, and serve their employees.

Our program this year will focus on the way that technology has shaped today’s HR processes and ways that HR will continue to evolve in the future. We’ve got a fantastic agenda of diverse and informative sessions and plenty of opportunities to discuss best practices and network with top HR professionals.

For the full agenda and detailed information about sessions, speakers, and sponsors, check out our event guide.

We are also excited to recognize our attendees for their innovative contributions to the HR field during our HRO Today EMEA Awards Gala. Click here for more information about our annual awards.

We hope that you will find this year’s HRO Today Forum EMEA to be both informative and enjoyable!

Digital Transformation Starts at the Top

By David Ludlow, Group VP of Solution Management at SAP SuccessFactors

Successful leadership in the digital economy is contingent on how leaders empower the workforce and equip them with data-driven strategies and technologies. For companies to truly take part in the digital economy and transform their business, change has to start at the top. While employees have an important role to play in bringing strategy to life, leadership sets the vision and tone for the digital transformation.

Leaders 2020, a recent study conducted by Oxford Economics and sponsored by SAP SuccessFactors, analyzed how executives are driving digital transformation and identified the characteristics of “Digital Leaders.” Though difficult to define by one action or leadership trait, there is a shared set of identifiable tactics and strategies that these executives embrace to drive success. These executives are better prepared to build a digital workforce, empower employees, encourage collaboration, and drive continuous innovation.

Take action. Don’t expect employees to drive digital alone – they are looking to leaders to create the agenda. This means embracing digital yourself and listening to the rising number of millennial executives who are ready to implement strategic digital initiatives. Leaders 2020 found that only 37 percent of millennial executives feel that senior leadership is using technology to achieve competitive advantage. If leadership isn’t embracing technology and data-driven decision making, how can the workforce be expected to?

As leaders embrace digital, this vision needs to be shared across the organization to engage employees—58 percent of Digital Leaders are making their decisions transparent to the people affected by them. Implement and communicate a strategy for how the workforce can leverage technology to drive new and better business processes, eliminate manual tasks, and inspire innovation.

Encourage rapid decision making in the moment. Digital leaders empower employees by giving them the tools and insights to drive rapid decision making without the bottleneck of managerial approval. This approach is critical to creating an agile business environment and engaged workforce. Leaders 2020 revealed that 62 percent of digital leaders are making decisions in real-time, and 62 percent also state that decision-making is distributed across the organization (compared to only 41 percent of other executives surveyed.)

When employees are empowered to make fast decisions, they’re inspired to challenge the status quo and achieve business agility, which leads to more satisfied employees. In fact, 87 percent of digital leaders say they recognize and reward people who make process improvement challenges. By showing confidence in employees, digital leaders also create a more engaged workforce and help attract and retain top talent. Digital leaders invest in their employees and  give them the tools to succeed. In turn, these employees will go the extra mile beyond their job requirements.

Encourage collaboration to drive continuous innovation. The pace of change in the digital economy is not slowing down, so neither can the pace of business. Leaders 2020 revealed that barely half of executives surveyed say their senior leadership is highly proficient at using technology to achieve competitive advantage and facilitate innovation and collaboration.

Digital leaders, however, implement technology to facilitate collaboration, motivate employees, and create a dynamic business culture. They are creating fast-paced, productive work environments and responding to change quickly – 63 percent are capable of adapting to decisions made in real-time, compared to only 47 percent of other executives. Deploying human capital management (HCM) solutions that encourage collaboration is critical to helping employees adapt to change, create competitive advantage, and drive innovation.

Navigating the digital transformation is about more than deploying technology—it’s about creating a culture of innovation, cultivating employee engagement, and mastering business agility. Each incremental investment in digital must to be part of overall strategy, not just getting the latest technology for employees. Strong leadership in the digital age will inspire your workforce and yield significant business results.

To learn more insights from the Leaders 2020 study by Oxford Economics and SAP SuccessFactors, click here.