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HR & People Analytics: Intro to AI for Human Resources. Take no offense!

Updated: Jun 30, 2020

Take no offense! But some HR departments still have a medieval way of thinking, and they are stuck in the Dark Ages of hunches and intuition.

I paraphrase here a scene of Moneyball:

there is an epidemic failure within these departments to understand what is really going on. And this leads those who run HR departments to waste valuable resources and mismanage people.

If I have offended you, I beg your pardon.

I've taken my quotation about medieval thought out of the Moneyball movie.

YOU KNOW...Moneyball is a story based on real events and tells us about innovation in the evaluation of performance and hiring, the confrontation of intuition against data, and even predictive analytics. It is surely the movie that best illustrates the spirit of people analytics.

You know? The most valuable asset is also the most expensive

In Human Resources, we like to repeat that people are the most important asset of the organization.

According to Accenture, the total cost of human capital represents up to 70 percent of all business expenses.

As organizations want to manage this rather expensive asset as best as they can, they are asking that we rely on the data to make these important decisions. This translates into the need to eliminate the conjectures of the talent management cycle and take advantage of analytics in each key process of the HR departments: recruitment, training, performance analysis, work environment, compensation, and loyalty.

We have at our disposal more and more information about tastes, opinions and certain behaviors. And it is very useful for us to make decisions about salaries, rotation rate, etc.

Every day, the employee of a company issues multiple signals that measure his performance, the degree of satisfaction with his work and commitment to the organization.

Technology has greatly simplified the measurement and collection of objective parameters on the development of work activities.

In this sense, people analytics focuses on processing that information through analysis tools that allow reorienting decisions about talent management. People analytics is based on data analysis, rather than traditional methods of relationships or individual experiences.

And this is the road to transformation...

People analytics is based on applying Artificial Intelligence to the area of ​​human resources in order to better know the people of our organization and increase their level of satisfaction and productivity.

The current techniques of people analytics include, of course, the development of algorithms. A typical example of a people analytics intervention is the analysis and improvement of the turnover rate. A predictive model can identify which employees are at risk of leaving the organization, when they will do it, and for what reasons they will do so.

People analytics offers a unique opportunity for human capital professionals to position themselves as strategic partners of top management, using analytically proven techniques to hire and retain employees that drive superior value in companies.

The main innovation with respect to a more traditional approach is the intensive use of data for diagnosis and decision-making in the people department: who to hire, who to promote, decide on the ideal structure of the company, etc.

Any AI solution of people analytics should serve to support decision making in human resources, especially in those areas where there is uncertainty or incomplete information.


Any AI solution of people analytics should serve to support decision making in human resources, especially in those areas where there is uncertainty or incomplete information.

You could build and test your own AI prototype for Human Resources in 3 weeks by leveraging the AI expertise of our team.

Test, before you leap!

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Find out how Byteflow's expertise can help you and your company. Byteflows AI is a boutique NYC based data consultancy with a global reach. Our small team of dedicated AI & data science consultants and experts strives to deliver business value with AI. [Healthcare, MLTC, Insurance, FinTech, NLP, Hedge Funds, Pharma, Political campaigns & more] 

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