Building for the future: Why predictive analytics matter now
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The document emphasizes the importance of predictive analytics in the growing field of people analytics, highlighting best practices for establishing a successful analytics function. It underscores the need for a clear vision for future capabilities to enhance decision-making and to align HR strategy with the business while advocating for the integration of advanced analytics. Delaying predictive analytics could significantly diminish the effectiveness and strategic impact of HR functions.
Building for the future: Why predictive analytics matter now
- 1. Building for the future Why predictive analytics matter now William Gaker ©2014 LinkedIn Corporation. All Rights Reserved.
- 2. Goals for today Growth and establishment of ©2014 LinkedIn Corporation. All Rights Reserved. the people analytics field Best practices for building a people analytics function Importance of a future vision both for our field and our functions How can predictive analytics can help us establish a vision and roadmap for the future
- 3. Source: LinkedIn self-reported data based on job title, start date, and company People analytics is growing quickly ©2014 LinkedIn Corporation. All Rights Reserved. 0 Running Total of Companies with People Analytics Functions 1000 2000 4000 6000 8000 10000 5000 12000 6000 14000 0 2000 3000 4000 1956 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Running Total of Workers Focusing on People Analytics
- 4. 5119 Companies have employees focused on people analytics 43% of the Fortune 1000 55% of all people analytics functions have been started within the last 5 years ©2014 LinkedIn Corporation. All Rights Reserved.
- 5. The field is growing, but we are still building it ©2014 LinkedIn Corporation. All Rights Reserved.
- 6. What does the end product look like? Reporting Self-service Reporting Interactive Dashboards Centralized Portals Ad Hoc Reporting Business Operations Performance Management Program Evaluation Strategy Development Planning Analytics Forecasting Predictive Modeling A/B Testing Machine Learning Survey Design ©2014 LinkedIn Corporation. All Rights Reserved.
- 7. What do people analytics functions need to be successful? Technology Data Warehouse System Integration HRIS Architecture Business Intelligence Measurement Data Definitions Data Integrity Data Governance Data Collection Roadmap Adoption Trust Partnership Insight Feedback Action ©2014 LinkedIn Corporation. All Rights Reserved.
- 8. What are we building? We need a vision for the future in order to have an impact If we don’t communicate a vision or a purpose, our clients will do that for us If we don’t know what we’re building to, we may get lost along the way If we don’t set best practices, we will lose opportunities to learn from each other ©2014 LinkedIn Corporation. All Rights Reserved.
- 9. Be mindful of future needs while building capability Reducing the time required to build capability will maximize impact Value to Decision-Making ©2014 LinkedIn Corporation. All Rights Reserved. Time Infrastructure Building Operational Reporting Advanced Analytics Predictive Analytics
- 10. The decisions made in early stages of analytics maturity greatly impact the future state of the function Early Days System Implementation Data Scrubbing Manual Reporting Capacity Building Relationship Building Future Self-service Reporting Advanced Analytics Predictive Analytics Data-Driven Strategy Evidence-Based HR ©2014 LinkedIn Corporation. All Rights Reserved.
- 11. Be mindful that there are multiple channels of maturity Analytics Client Adoption Measurement Technology Predictive Analytics Data Drives Strategy ©2014 LinkedIn Corporation. All Rights Reserved. Rich Portfolio of Predictors and Outcomes Machine Learning Algorithms Advanced Analytics Asks Basic Strategic Questions Connecting Survey Feedback to Outcomes (Predictors) Advanced Statistical Software Advanced Reporting Answers Questions with Self-service Reports Basic Survey Feedback Benchmarks Data Warehouse BI Tools Operational Reporting Requests Basic Reports Basic Transactions (Outcomes Only) Spreadsheets Siloed HR Systems
- 12. Use your vision for the future to build a measurement portfolio Expanding measurement during foundational stages ensures we have the right data when we need it ©2014 LinkedIn Corporation. All Rights Reserved.
- 13. Use your vision for the future to help clients understand People Analytics If clients understand what we are building towards, they will be better at leveraging and appreciating our services ©2014 LinkedIn Corporation. All Rights Reserved.
- 14. Use your vision for the future to prioritize your capacity Your vision for the future will help you prioritize your activities and help you avoid getting lost in “ad hoc” purgatory ©2014 LinkedIn Corporation. All Rights Reserved.
- 15. Use your vision for the future to align your HR strategy As your Talent Analytics function becomes more developed, HR should become a strategic partner to the business ©2014 LinkedIn Corporation. All Rights Reserved.
- 16. Use your vision for the future to build your internal brand Your vision for the future will help communicate the type of services you should be providing, and prevent your clients from making assumptions about what those services should be ©2014 LinkedIn Corporation. All Rights Reserved.
- 17. Why are predictive analytics so important? Predictive analytics should be the key driver of your roadmap and vision Predictive analytics are the most advanced service a people analytics team can provide Provides the deepest level of insight and helps you answer the most strategic questions Helps you describe the future state and mission of your team to your clients who may be new to people analytics Gives you clarity on what type of analytics function you are building and how to prioritize your efforts ©2014 LinkedIn Corporation. All Rights Reserved.
- 18. What happens if we delay predictive analytics? Delaying predictive analytics reduces your impact Delays understanding of root cause of crucial employee and organizational outcomes Delays your ability to measure the business impact of HR Limits the insight and storytelling you are able to provide to your clients Lessens the strategic impact of HR ©2014 LinkedIn Corporation. All Rights Reserved.
- 19. Questions? ©2014 LinkedIn Corporation. All Rights Reserved.
Editor's Notes
- #8: It is rare for all of these tools to be in place prior to the start of the function Talent analytics teams spend the majority of time in their early days laying the foundation
- #19: There is seldom a single root cause for HR outcomes, advanced analytics is the only way to examine multiple drivers in one model and measure the predictive ability of that model