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Predictive Analytics Trends in HRM

Predictive Analytics Trends in Human Resource Management

From crystal balls to Nostradamus we love to hear what the future has in store for us – as an individual or as a mankind. Everyone hates surprises if it does not come with the word ‘party’ or ‘gift’……. I’m sure businesses hate surprises too especially the nasty ones.


Let’s consider a scenario. You are at the crossroads of your life. You have to make certain choices that have a lasting impact on your life, like marriage. You wish you have a crystal ball that accurately predicts how it is going to be. If not the case, you wish you can make an “informed decision”.  For an individual, information is scarce and most of us are not trained on decision-making. Corporates have an advantage on both counts.



Informed Decision Making

It involves two main components information and decision.


Information is Wealth. Whoever said this is really futuristic. Then, he might not have imagined the volume of information we get in the form of data in this digital era. We started at Bits and Bytes, surpassed Terabytes or Petabytes and heading towards Zettabytes & Yottabytes. Mind boggling!!


Information, this is the key element.  To arrive at a decision we need information, volumes of information. The amount of information needed is directly proportional to the complexity of the decision.  Those big voluminous data are grouped and compartmentalized into small data. From the small data, we can analyze the pattern and gather supporting evidence to arrive at the most logical and informed decision. Sounds simple, right???



Predictive Analytics on the fore

If you say Predictive Analytics is the future of mankind, you are not really off the mark. With the revolution of Big Data, we have at our disposal Petabytes of dormant data with no actionable information. So, there comes Predictive Analytics which identifies the right data and converts them into intelligent reports.


Sophisticated predictive analytics system combines specialized domains such as data mining, machine learning and statistical theories.  It extracts information from various data sources, find patterns and predict future consequences. These insightful reports streamline business operation and help us achieve cost-effective growth.



Predictive Analytics in People Management

Predictive Analytics made a positive impact on optimizing product enhancements, service offerings and customer Analytics. Now, it makes an inroad into people management space and helps the organization enriches the value of their human resource. New breakthroughs in machine learning and greater availability of automated systems made people intelligence possible for the organization. People Analytics helps HR makes better recruiting and retention decisions and offers cost saving opportunities.


Helps Hire the Right Candidate

For any organization, hiring the right candidate is winning half the battle. Predictive Analytics helps the organization find which candidates are a good fit and which candidates are likely to become toxic employees. By eliminating potential toxic employees from the candidate list companies avoid potential financial and human resource loss.


Helps Mitigate Flight Risk

Another major problem in people management is the employee turnover rate. Organization roughly spends 213% of annual salary to replace high-potential employees. Predictive Analytics can help you find the flight risk of the employee from the historical data. It also provides valuable insights on determining the problem areas and the likely causes for the attrition. You can take proactive measures to address the root causes and rectify problem areas to improve retention rate.


Helps Optimize Human Resource Efforts

HRMS software made it possible to store scores of data on recruitment, training, compensation and other people management activities.

From those information Predictive Analytics

  • Helps organization develop predictive models to improve the employee experience.
  • Identifies current and future skill gaps and helps HR develop the strategy for workforce training and recruitment planning.
  • Predict seasonal trends on absences and helps preschedule extra staffing to manage time-bound projects.
  • Evaluate individual employees for compliance or security breaches as a part of proactive risk management.
  • Studies the patterns and analyzes the trends to optimize HR productivity.
    And the options are endless.



It is the way forward…

2017 is an epoch of technology disruption in all walks of life and all spheres of businesses. HRs are not immune to this phenomenon and moreover, don’t want to be left behind. They are actively embracing technology advances in Talent Management. As the saying goes, “You have to walk before you can run”. First, automate human resource management and performance management with state-of-the-art software and be equipped for People Analytics.


Share your take on Predictive Analytics and how it redefines people management. We would love to hear from you.


You are invited to take Synergita’s Test Drive or Schedule a Live Demo. It’s Free.


  • Predictive data analytics are everywhere. It is in its essence a technology that learns from existing data and it uses this to forecast individual behaviour. This means that predictions are very specific. That’s why Predictive analytics are a rapidly upcoming trend in Human Resources. Even though a lot of people talk about predictive analytics in HR, hardly any organizations apply them to their workforce.

    • Thanks for your comment. You are absolutely right. In my opinion, the change is started and happening. The advancement in analytical field and the focus towards people management indicate the momentum is set and predictive analytics in HR will soon be a reality.

  • Awesome article! Predictive Analytics Trends in Human Resource Management
    You described the different ways of Human Resource Management

    1. Informed Decision Making
    2. Predictive Analytics on the fore
    3. Predictive Analytics in People Management
    4. Helps Hire the Right Candidate
    5. Helps Mitigate Flight Risk
    6. Helps Optimize Human Resource Efforts

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