The Power Of Predictive Analytics
Peter Gillespie was interviewed by HR Executive Magazine about selecting job candidates with predictive analytics.
According to a new study, a growing number of new hires, as well as top-performing employees, are choosing not to stick around for long.
The 2014 PwC Saratoga U.S. Human Capital Effectiveness Report, which is based on a survey of 375 employers, found the percentage of employee headcount for new external hires increased by nearly 40 percent from 2010 to 2013. More of those new hires are leaving before their one-year anniversary.
Smart companies are turning to predictive analytics to do a better job of selecting candidates, according to the article. Predictive analytics may help HR identify candidates who are most likely to stay with the company by identifying the characteristics of top performers who've held pivotal roles and then looking for those characteristics in candidates for those positions, according to the report.
"In theory, predictive analytics should, if applied properly, broaden the possibilities for applicants to get hired and, theoretically, should result in possibly a more diverse workforce than what might have otherwise come through the door based on standard hiring processes," said Peter.
"There's always the risk of testing bias, and we've certainly seen the EEOC pursuing concerns about potential bias in the hiring process."
HR leaders should ensure they understand how the factors that are being considered were selected and how the process was developed, he suggested.