The four types of analytics correlate to a model showing the maturity of analytical methods. The Bersin Talent Analytics Maturity Model, developed by HR industry analyst Josh Bersin, numbers the levels of analytics from the lowest to the highest. Descriptive analytics appear just under level two, diagnostic analytics are at level three, predictive analytics just under level four and prescriptive analytics at level four.
This model defines four plateaus of implementation that companies encounter as they develop data analytic capabilities:
- “Operational reporting” – About 50% of companies are at this “reactive and descriptive” level. Normally at this point, companies don’t assign staff members to work solely on data analytics. Instead, staff efforts focus on amassing complete correct data with punctual reports. Usually companies collect only two talent metrics: the time it takes to fill an opening and information on diversity within the company.
- “Advanced reporting” – Approximately 30% of companies fall into the category of “proactive and diagnostic” reporting. They have data analytics staff members who work with their leaders to make sense of information and to determine how to apply it.
- “Advanced analytics” – Only 10% of companies use information strategically to “identify issues and recommend solutions.” These firms may have core data analytics teams, conduct increased data collection and use advanced forms of analysis.
- “Predictive analytics” – A rare 4% of companies employ models and scenarios to foretell what may happen and what possible outcomes might occur. The information they convey – while derived from painstaking analysis and modeling – remains accessible to the layperson. This results in a clearer understanding that helps lessen risk and more easily integrates with corporate strategic planning and development.
“We must now be anchored in data and analytics.”
Of the companies that IBM and HR.com polled in 2015, 48% used descriptive analytics, while 41% still used basic reporting. Eight percent of companies surveyed used predictive analytics; only 3% used prescriptive analytics. More than half these firms saw a defined, direct relationship between their talent strategies and business goals. This direct relationship calls into question the KPIs firms now use for analysis.
“We must rise to the challenge, designing data-driven people strategies and the programs to achieve them as catalysts for change.”
(1) The Data Driven Leader
Categories: Personal Development