As they say, a company’s most valuable assets are its human resources. But it’s far more than a glib platitude. There’s great merit to this claim, since a high-performing team combines all the right elements, from job-specific technical skills to soft skills to the various “intangibles” that contribute so importantly to a firm’s culture.
Finding and keeping the right team members requires applying the same capabilities as you’re seeking. In particular, there are increasingly “technical skills” that can be applied to the task to supplement softer approaches. What, for example, are those intangibles we should look for when we interview a candidate? How does compensation really drive behavior? How do we retain our strongest performers? The data in the hands of the HR team can be mined successfully for actionable insights that can lend power to feel-good activities like a fancy holiday party or “President’s Club” outings to exotic locations.
Our team at End-to-End Analytics has the skills and insight to help your company address some of the quantitative challenges in the HR realm, including:
Recruiting is expensive. It’s not uncommon to evaluate hundreds of candidates, screen dozens, and engage several in in-depth interviews – all to fill a single vacancy.
Fortunately, predictive analytics can substantially improve both the efficiency and effectiveness of recruiting efforts. We work with our clients’ HR departments to:
Identify what resume attributes are most predictive of subsequent job success.
Design screening and interview procedures to focus on these attributes.
Target recruiting efforts to maximize the number of high-potential applications and discourage low-potential applications.
Calculate how many offers to make in order to fill a given number of vacancies.
Compensation & Equal Pay
Companies increasingly worry that their compensation models not discriminate, even unintentionally, on the basis of gender. Indeed, the passage of equal pay legislation in various states makes this a critical legal requirement.
In these situations we work with our clients’ HR departments to:
Measure the gender pay gap, controlling for employee characteristics such as job role, age, experience, and education.
Identify which employees are over- or underpaid relative to their peers.
Highlight which job roles and employees (male and female) contribute most to the gender pay gap.
Define constraints on pay adjustments, such as no employee taking a pay cut and no increases above 10%.
Find the minimum-cost set of pay changes required to eliminate the gender pay gap while observing the above constraints.
The loss of key employees can be remarkably expensive, once all the associated costs are accounted for – reduced output, recruiting replacements, new-hire training, and so on.
Fortunately, the techniques of “churn management,” which for years have helped companies to anticipate which customers are most at risk of departing, can now be applied to their staff as well. We work with our clients’ HR departments to:
Predict staff turnover given current policies.
Quantify the total costs of a “regretted loss.”
Anticipate how turnover would change in response to changing various HR policies.
Identify specific employees who are most at risk of leaving.
Design interventions with the best chance of retaining at-risk employees.
Target recruiting towards groups with lower turnover, and hence lower total employment costs.