Talent Analytics: From Buzzword to Reality


In a recent pilot that we conducted for our US client nearly, 76 % of HR’s rule-based tasks can be automated and it will generate 1200% more structured data compare to current system. Now HR department can utilize this time and humongous data in taking strategic decisions.

Automation in Recruitment process, Payroll, Data management, taking away the entire HR transactional role and now HR will be playing a human-centric role with the help of Talent analytics”

The Impact of Disruptive technology in HR Process is inevitable. Robotic Process Automation (RPA), Artificial Intelligence (AI), Machine Learning (ML), Blockchain and IoT are jointly surrogate mothers for Talent Analytics.

Talent Analytics is a broad area that encompasses all aspects of acquiring and managing talent, and it has largely come to replace its predecessor term, HR analytics, though that term is still in use. Besides HR analyticspeople analytics and, in some cases, workforce analytics may be used synonymously with talent analytics
Talent Analytics application in HR domain

Talent Analytics is a necessity and not a luxury anymoreHR professionals who are willing to take next big leap, it’s highly recommendable to get specialized in Talent analytics, as it will not only just fetch you an authoritative job profile but help you scale up in your career.

Making the right hiring decisions

Good recruitment is all about hiring people that are a good fit for the job and who will be successful in the role over the long term. Longevity is a very valid concern given the potential cost of a bad hire – estimated to be as much as three times an employee’s salary. The traditional information collected in an HR recruitment exercise – qualifications, past performance, references, and interview interactions – is not necessarily enough for a strong indication of future success in a role. So, predictive analytics is now being used to identify the characteristics and commonalities that are driving top performance in existing employees and providing more data points with which to assess job applicants.

A leading American bank is putting this into practice by running algorithms on digital resumes to identify candidates with the bank’s preferred traits. It is also using the same technology to ensure human interviewers don’t overlook strong applicants.

While this approach can unearth new predictors of a candidate’s success in a role, it can also, unfortunately, throw up superficial commonalities that have little to do with performance. The key here is for HR leaders to ensure they understand how the factors that are being considered were selected. Statistical tests can also be run to determine whether an algorithm is screening out particular demographic groups.

Retain and engage champs 

Talent Analytics empowers you to differentiate champions from the rest. Pareto – 20% of employees brings 80% of total result thus you need to find them and retain them.

“You take away our top 20 employees and we [Microsoft] become a mediocre company”-Bill gates

87% of business leaders are highly concerned about retention and engagement. This comes as no surprise when disengaged employees are costing the U.S. economy $500 billion per year in lost productivity.

Retention and engagement are two sides of the same coin, so, unsurprisingly; predictive modeling is also helping to uncover critical engagement factors that drive performance in an organization. HR leaders are now able to prioritize initiatives that improve employee motivation and retention.

In transportation, where annual driver turnover can be higher than 100%, a leading trucking company is using predictive analytics software to better understand its workforce, identify the factors behind turnover, and anticipate drivers at risk of leaving. In doing so, it has reduced driver turnover by 15%.

Adapt and Evolve

HR is the backbone of an organization that silently binds everything together. Talent analytics will give you the potential to come up with what your company lacks and what rectifications and changes you can come up with them. It helps you stay on track with other businesses and deploy technologies that will pave for better functioning of your business.

Employee Efficiency and Incentive Schemes

Some of the most common disparities arise from the incentive schemes of employees. Pay check and incentive privacies are a myth and most employees share their incentive percentage or the exact amount with their peers. Any disparities immediately crop up to conflicts and escalate to managers. To come up with just incentive schemes and categorizing employee efficiency, implementing Talent analytics is the practical approach. Making it transparent will allow for further understanding and alignment with individual tasks/goals and incentive payouts. Talent analytics will help you settle tons of conflicts on this with ease.

Implementation of Talent analytics

Questions interviewees get asked in Google’s hiring process are all fully automated, computer-generated and fine-tuned in order to find the best candidate. Google estimates the probability of people leaving the company by applying HR predictive analysis. One of Google’s findings is that new salespeople, who do not get a promotion within four years, are much more likely leave the company.

Facebook pages

Do you check the Facebook pages of applicants? A study revealed that it is possible to predict someone’s personality and future work performance based on their Facebook profile. In this study, participants given social score ratings based on Facebook profiles.

The best predictive models for future job performance combine various predictors, such as IQ tests, structured interviews, and personality tests together. Looking through a Facebook profile could be an additional instrument to scan candidates.

US Special Forces

During the highly selective training, the U.S. Special Forces predict which candidates are most likely to succeed. Two key predictors are ‘grit’ and the ability to do more than 80 pushups. Grit was actually a more accurate predictor of training success than IQ.


Wikipedia is able to predict who of its 750,000 editors is most likely to stop contributing. Thus they can send appreciating emails and put more efforts to retain their champ contributors.

Best Buy

Best Buy (a leader in predictive analytics) can accurately predict how employee engagement impacts the performance of their stores. A 0.1% increase in employee engagement results in an increase of over $100,000 in the store’s annual income. The enormous impact of engagement prompted Best Buy to make its engagement surveys quarterly instead of annual.

Retaining employees at Hewlett-Packard

Data scientist at HP combined data of the previous two years and attempted to predict who would leave the organization. By using predictive models, they generated what they called a “Flight Risk” score. This score predicted the likelihood of leaving of each of HP’s 300,000+ employees.

Recently People Matters in Bangalore organized a debate on Talent Analytics .HR heads from Wipro, ICICI Bank and Uber came together to discuss on this subject.

“There is nothing that can be done without Data. However, the Data churned out from the complex algorithms has to be interpreted by the manager. The discretion of the decision maker is absolutely critical,” – Vishpala Reddy, CHRO, Uber.

“We have been able to capture live sentiment analysis of our employees. i.e comment on various social networking sites across the globe in Wipro real-time. A country-wise, region-wise and business-wise dashboard of information is created and then managers can look into it simultaneously. “ – Saurabh Govil, President & CHRO, Wipro


Author– Mohit Sharma is among the few top Digital Strategy leaders. he has 12+ years’ experience in Digital Strategy, Artificial Intelligence, Data Science, Machine Learning, Blockchain, IoT, Automation, Cloud computing, Predictive Modelling & Business Analysis. Mohit often found sharing the stage with the industry leaders on the latest technology developments. Mohit completed his college from Delhi University and Executive program from IIM- Bangalore and Digital Strategy study from DMI- Ireland.



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