What is the Future of Predictive Analytics in HR?

August 4, 20158:10 am2727 views

The recent technology trends in the HR industry clearly signals two tipping points that have brought about a radical change in how companies are embracing transformation in HR. Where does predictive analytics fit in the realm of HR operations today?

The two key trends signalled this year are: organisations increasingly are now hosting their human resource management system on the cloud, and more than 60 percent of the companies use mobile to speed up some critical HR activities.

However, one particular area in HR tech which is expected to revolutionise the way HR works is predictive analytics. HR leaders seem to be stuck in a state of neutrality when it comes to usage of predictive analytics.

Cloud-based HR software has now been able to win confidence of organisations and HR professionals alike after more than a decade of its launch. Companies now seem to have gotten comfortable with the idea of hosting core talent management tools on the cloud.

Since cloud-based software solutions allow for constant updates and new releases, vendors are focusing efforts on improving innovation in cloud-based software, with least attention being paid to on-premise applications, which have to wait longer periods for upgradation. The cloud presents a much more attractive proposition for businesses across the globe, with companies experiencing hassle-free benefits.

According to recent research findings, cloud-based HRMS software deliver higher user experience scores, which in turn translates to higher end-user adoption. The cloud based software solutions designed specifically for effective human capital management require very little deployment time and resources to manage them.

See: Predictive HR Metrics: Smart Way to Use Data

Deloitte’s Global Human Capital Trends 2015 survey shows that 87 percent of organizations cite culture and engagement as one of their top challenges, and 50 percent call the problem “very important.” “It is the first time in 14 years that we’ve seen engagement as a top issue,” Bersin said. “That is forcing vendors to change their approach.”

“Anything that drives engagement is good news for businesses,” said Josh Bersin, principal and founder of human resources advisory and research firm Bersin by Deloitte. Until recently, HRMS vendors have sold solutions to companies and customers marketing the sole idea of integrated talent management software to automate tasks.

However, today the demands have changed. While companies still expect this feature, they would prefer add-ons that promise to attract, retain and engage potential talent.

The shift to mobile usage in HR has created the need for new apps to be developed by vendors that performs the same functions along with rich end-user experience on mobile with an app. Towers Watson’s 2015 survey shows 61 percent of companies now use or are adopting mobile for HR, up a whopping 17 percent since 2014, and vendors are giving them lots of options to choose from.

Most of the big names in HR tech to mention: SuccessFactors, Taleo Corp., Kronos Inc and iCIMS Inc, as well as niche vendors now offer a host of mobile apps with features embedded that help manage performance, learning, recruitment, goal setting and others.

The lack of analytics skills on HR teams and the lack of partnerships between HR and other departments to share data are causing adoption of predictive analytics tools to stall — despite the huge amount of interest in harnessing analytics for talent decision-making. HR leaders still need at least basic analytics capabilities to make most of the predictive analytics tools.

That’s when the analytics trend will finally take hold, Bersin added. “We see people analytics as part of a new set of critical skills for HR, business and leadership. It will take a couple of years for most companies to achieve the level of competency and data history necessary to make analytics a fundamental part of their HR decision-making process.”

News source: workforce.com

Also read: Harnessing the Power of HR Analytics: Quick Bytes from Dr Arun Krishnan

Image credits: flickr.com

(Visited 1 times, 1 visits today)