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Predictive HR Analytics 101: How to Improve Your HR Strategy in 2021

Predictive HR Analytics: How to Improve Your HR Strategy in 2021

Predictive analytics uses historical data combined with current trends to predict future events.


In the context of HR, analytics systems allow teams to make predictions about areas of the HR operation. From a cultural perspective, using these systems in human resources can help predict an employee's likelihood to remain engaged in their job, their ability to upskill and develop transferable skills in the industry, and their chance to stay in a position for an extended amount of time.

Predictive analytics is a technology that learns from existing data and uses this to help businesses and organizations quantify qualitative data by assigning a score to the different areas that need to be measured, demonstrating an event's likelihood.


Why is it essential to master Predictive HR Analytics?


These analytics are crucial for understanding how employees are responding to company policies and their working environment.


Once companies understand the importance of mastering these predictive HR analytics, especially with easy-to-use software becoming readily available, HR teams will turn historic workforce data into a competitive advantage. As the automatic analytics systems mature, organizations no longer need to rely on data to understand how predictive analytic software works. 


Predictive analytics software allows HR professionals to gather accurate insights into the efficiency of current HR processes and company policies, for example: how employees interact with their work and its business impact, future recruitment needs, and the best course of action, and ultimately deliver an exceptional, personalized employee experience.


Rolf Bax, Chief Human Resources Officer for, a leading resume-builder and career prep company says, "Predictive analytics will continue to be crucial to HR success, and therefore crucial to business success in 2021 and beyond, as the speed at which COVID has sped up automation, forced technological change on companies, and obligated a belt-tightening across most major industries means businesses need to be able to spot human capital deficiencies and opportunities before they arise."


The advancements in HR technologies have brought to light the importance of predictive HR analytics in enhancing human resource management, which was once considered an isolated business function. Notably, 'human resource' is not just a core business function but a meaningful contributor to an organization's growth.


We asked Ethan Taub, CEO of Goalry and Loanry, why it's important to incorporate predictive analytics in an HR strategy, he said: "If you can master analytics, you can keep your employees engaged in their positions and make sure they do not leave the company and also get engaged in the culture within the workplace."


3 Ways Predictive Analytics Can Improve Your HR Strategy


Smoother Payroll Systems

The introduction of predictive analytics allows HR professionals to develop better continuity across their team. For example, some business experience issues, such as employees who are used ineffectively, waste of company resources, and bonus anomalies, are very prevalent in many organizations. These errors can be fixed effectively through a systematic, data-driven analytics plan, which could end up saving businesses valuable time and money.


Better Leadership Assessments


Business leadership is one of the most important assets a company can possess. It's crucial to monitor employee performances and measure leadership potential among current employees to pave the path for a healthy future. Many organizations have internal assessment plans to review leadership potential; however, most adopt a particular strategy. Predictive Analytics and related technologies can provide a data-driven system that can analyze employee traits and find potential leaders.


Proactive Employee Retention

While employee turnover is normal - to a certain extent - for many businesses, organizations should minimize attrition risks by predicting high-performing employees' exit. Employee exits can dramatically affect a business's performance. It's up to HR leaders to accurately monitor employee satisfaction levels. Apart from just tracking how happy current employees are, companies must also focus on metrics to identify gaps in skills and develop learning and development programs accordingly.


Risk Management

Using predictive analytics, HR professionals can forecast potential risks within their organizations earlier, allowing for better development of inappropriate responses, reducing poor performance within the team. Using measurable analytics can also enable employers to find the root cause of issues, which allows for an easier transition to a specific factor, whether it be employee training or higher up in the hierarchy.



Predictive Analytics in HR is generally quite a new concept; however, it has a vast potential to change the way we use HR data. Many organizations are still resorting to manual data mining, which is time-consuming and often commonplace for errors. HR Analytics will prove to be a game-changer since it will make day-to-day human resources operations smoother. Still, it will also help HR leaders predict risks and formulate effective measures successfully.


Overall, predictive analytics solutions come with customizable interfaces that are intuitive and easy to use. Each organization has unique requirements, and choosing a specific tool to meet that business requirement is critical for a positive outcome. With predictive analytics, HR teams are likely to spend less time assuming what the general mood in the organization is and can instead rely on real data to take action that will drive productive business outcomes.


Predictive analytics with Heartpace provides all the tools you need to achieve remarkable results in your HR department. Engage your employees with our performance driven HR system to align your strategy and goal management. 


Reinvent your performance management with your 20 day free trial today!

Henrik Dannert


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