Economics/Business

What is Predictive Analytics/Working/Purpose/benefits/importance

Have you heard of predictive analytics? In the HR area, many challenges are related to reducing turnover rates and increasing engagement and productivity.

These factors reveal a lot about the organizational climate, company culture and corporate investments. In other words, they are true indicators of the success of People and Management initiatives!

However, through this analysis and the use of technology in HR , it is possible to make more effective hires. But not only that: it becomes feasible to create more accurate and objective professional development processes.

Read on and learn how predictive analytics can transform your business results! Here, you will understand how to apply the methodology in your company’s selection and development processes, in addition to knowing the main benefits.

What is Predictive Analytics?

Predictive analytics is based on data collection and analysis, combined with Artificial Intelligence , behavioral science, and the use of custom algorithms. All of this is cross-referenced and applied to mathematical functions that create predictive models for different situations!

An example of use is in its application in selection processes, to map the profile of candidates and predict actions, reactions and behaviors. However, its functionalities can go beyond the selection stages and HR actions.

Studies show that with this methodology it is possible to predict the performance potential of a person. This forecast is made through a combination of three key factors:

  • the way the person thinks (their abilities);
  • what sets you in motion (your motivations);
  • the way she behaves daily (her personality).

How does Predictive Analytics work?

The data used to create human factor prediction models are collected and extracted through specific questionnaires. In them, a person must answer a few sequences of questions aimed at each aspect of human behavior and reasoning.

The objective of these tests is to arrive at a detailed characterization of the behavioral profile , according to a set of pre-defined criteria. In addition, it is possible to use the data collected to analyze the adaptation and compatibility of professionals with each leadership and work model.

Through a specific indicator, it is possible to assess the compatibility of teams for hybrid, face-to-face or remote work , providing a type of score for each person assessed ( remote score ).

In this way, it is possible to predict the success of that person in a particular position or team. After all, aspects such as stability, satisfaction and engagement , positive performance, creativity and leadership contribute to productivity combined with happiness at work.

What is Predictive Analytics for?

The results collected through predictive analytics are used to assess the potential of candidates in selection processes. Therefore, they serve as a basis for structuring individual and team development strategies.

In addition, from the information stored, it is possible to draw a corporate profile. It permeates most of the company’s employees and is a guideline for actions aimed at organizational culture .

Thus, in addition to ensuring the cultural fit between teams, predictive models guide the processes of building the organization’s identity.

All of this results in corporate changes and strategic benefits. Let’s find out what they are? Check it out in the next topic!

What are the benefits of Predictive Analytics?

By betting on predictive analytics in your organization, you have advantages such as:

  • greater talent retention and reduced turnover;
  • more satisfaction and engagement of teams;
  • greater productivity at work ;
  • more alignment among employees;
  • greater strength of organizational culture and brand identity;
  • cost reduction.

Through predictive analytics, it is possible to predict different scenarios and anticipate challenges (all based on data!).

What is the importance of Predictive Analysis for Recruitment and Selection and its main advantages?

The Recruitment and Selection processes are a fundamental part of the corporate strategy. After all, it is from them that new talents come to the organization, right? Therefore, investing in innovative technology and methodologies is essential to attract professionals with high performance potential and cultural fit.

When we apply predictive analytics to selection processes, it sets up predictive recruitment . This strategy can bring several benefits to your company and we list the main ones below, check it out!

Optimization of resume screening

With predictive analytics, it is possible to trace the ideal professional profile for each opportunity. Thus, at the time of screening resumes, it becomes feasible to organize in an automated way those that are most compatible with the vacancy’s prerequisites.

Behavioral and cultural fit assessment

The tests involved in the construction of predictive models make a complete assessment of the professionals’ profile. For this, they seek to understand how a person thinks, expresses himself and reacts in certain situations.

Based on this information, it is possible to assess the compatibility of the professional with the team and perform a complete mapping of competencies .

In this way, HR and leaders will be able to diagnose the most appropriate profiles for a given position. All this by evaluating your compatibility with leadership, organizational culture and teams, in addition to your learning style.

Carrying out development projects

Professional development is an important part of corporate success. After all, the employees of a company expect to acquire knowledge and experience new experiences in the organization, becoming better and more qualified people and professionals every day .

Therefore, investing in individual and collective development projects is essential for retaining talent and increasing engagement and productivity.

With predictive models, it is possible, from recruitment and selection, to identify outstanding skills in each candidate and map areas for improvement.

Thus, in addition to forming complementary teams, HR and leadership are able to perceive gaps and anticipate actions, creating more targeted strategies.

Anticipation of demands

By mapping the profile of each employee and performing an analysis of the team, HR and leaders identify exactly which are the areas of risk, limitations and failures in the team. In addition, they are able to assess which are the highlights and which skills and activities to explore .

Thus, it is possible to anticipate demands and possible conflicts from the continuous analysis of the sector’s performance, the development of each professional and the gaps identified previously.

After all, this is the key to predictive analytics: evaluating a scenario, its challenges and nuances and bringing it to the reality of the company and its professionals.

How to put Predictive Analytics into practice?

Before implementing new processes, it is necessary to know in depth the strategic objectives of the business, the profile of the employees and the organizational culture.

In addition, it is essential to understand the relationship of professionals and leaders with innovations for the sector. It is also important, little by little, to introduce technology into HR and other areas of the company.

Thinking about helping you and your company put predictive analytics into practice, we’ve brought you three essential steps. Check out!

1. Assess the context in which the company is inserted

The first thing to be done is a complete assessment of the company’s work scenario. For this, collect relevant information about the organization’s culture, leadership and internal processes.

To this end, questionnaires about culture and routine, organizational climate surveys, performance evaluations and feedback can be carried out , for example.

2. Assess the ideal employee profile

After that, you also need to internally evaluate collaborators who already occupy a position for which you want to build a model. At this point, consider each of the three key potential factors that were cited at the beginning of the article.

Remember that there is no such thing as the perfect person, but a professional profile and characteristics that are closest to the company’s culture and that align with business goals.

As a result of these analyses, it is necessary to link these characteristics with two variables:

  • the level of performance actually delivered by each of the employees in that position;
  • the quality of their attitude, understood as their alignment with the corporate culture and ways of doing things within the organization.

By comparing these two categories of data (on the one hand, “who are the people”, on the other, their results and their attitude at work), it is possible to identify the so-called “ predictors of performance and job satisfaction ”.

3. Insert the analysis into small routine processes and gradually expand

A good alternative to proceeding with the strategy of putting predictive analytics into practice is to apply the methodology gradually.

In other words, start with the leadership and expand to the other employees, understanding who is part of the company. Thus, the practice will be more natural, it will contemplate everyone and arouse curiosity and a sense of belonging.

Only after these first moments of internal practice and setting expectations for the future, implement predictive analytics in recruitment and selection , expanding to its maximum potential as a strategy.

As we have seen, betting on predictive solutions to recruit, select and develop the best professionals is a great business strategy! Based on robust methodologies and technology, your company will be able to perform more effective hiring and professional development processes that are more accurate and objective.

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