06 08 2015
door Inostix

4 Approaches Everyone In HR Analytics Should Be Using

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4 Approaches Everyone In HR Analytics Should Be Using-3We are being asked regularly what kind of analysis we perform in our predictive HR Analytics projects. For that reason, we made a short overview of the 4 most common approaches or methodologies that we use over and over again.

Our 4 approaches have differences in emphasis of course, and we use different techniques in the background, but we generally repeat two key features: 1) all projects combine data from multiple sources (people and business/organization) and 2) we start with a pressing people/business/organization issue that need to be solved (or better understood).


Approach 1: Clustering

With this approach, we are investigating hidden group patterns with the help of clustering techniques.

2 Examples:

  • Which common people characteristics can predict better sales performance?
  • Which cluster of recruitment sources can predict better people retention?

Approach 2: Driver analysis

With this approach, we try to understand hidden relationships. Most of the time, we use the word ‘impact’ to explain relationships between events or people/business characteristics.

2 Examples:

  • What is the impact of poor engagement on client satisfaction?
  • What is the impact of sales training on business revenue development?


The Predictive HR Analytics Process – 4 approaches


Approach 3: Risk analysis

With this approach, we try to understand probabilities or the likelihood of occurring events.

2 Examples:

  • Which high performers are at risk to leave in the next 24 months?
  • Will the reduction of training investments increase the risk of employee turnover?

Approach 4: Forecasting

With this approach, we try to understand future trend lines, based on historical patterns.

2 Examples:

  • What will be the employee turnover in the coming 3, 6 or 12 months?
  • What will be the typical first six months time-to-productivity trend line of a call center newcomer without call center experience?

Related HR Analytics articles

Why Not Turning HR Metrics Into Predictive HR Analytics?

Moving from descriptive to predictive HR analytics

14 HR Analytics lessons learned from 2014

The HR Analytics Value Pyramid

Interested in using these 4 HR Analytics approaches as a key component in your people or business strategy? Get in touch with CEO and co-founder Luk Smeyers for more information (mailto:[email protected] or via Google+). Or follow iNostix on Twitter and/or Facebook for exciting international articles on HR analytics. And don’t forget to register for this blog!

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