What Are Predictive Analytics for HR?


Predictive Analytics for HR

Right now, many companies are sitting on troves of data that, when analyzed properly, can not only prove useful to current business operations, but can also provide valuable insight about the future. However, with the total number of available data points sometimes reaching into the millions, it can be overwhelming and time-consuming—if not impossible—for individuals to manually sift through all this information.

For help with the mining process, organizations have turned to predictive analytics tools—technical tools that use algorithms to produce plausible projections about the future, based on what’s already happening. In the business world, analytics are often used to assist with finances, such as helping to shape budgets, generate inventory, and cut down on unnecessary spending.

Predictive analytics have also become increasingly popular in human resources to help leaders make smarter, more informed decisions about talent. Moreover, innovations such as prescriptive analytics have taken the technology even farther to include suggested actions for managers, based upon specific details the analytics uncover.