Human Capital Predictive Analytics and Retention Modeling

According to recent studies by McKinsey¹, the biggest focus for management in the next decade is vying for top talent in an intensively competitive global marketplace. Organizations will have to use human capital information in a focused, deliberate and proactive way to optimize the work force. Unfortunately, most organizations lack a consistent and holistic view of the work force and the needed analytics to perform workforce optimization.

The predictive analytics and retention modeling solution from SAS allows organizations to identify high-risk employees, build profiles of those most likely to leave or stay, and understand how risk – due to talent shortages – is distributed throughout the organization. SAS predictive analysis also helps organizations to fight employee fraud and detect other risk challenges that affect the work force or the organization as a whole.

SAS helps customers retain critical talent and mitigate workforce risk which can, in turn, improve competitive advantage, efficiency, effectiveness, employee morale and customer satisfaction.

Benefits

• Recognize the strengths and vulnerabilities of your work force and predict vacancies and leadership needs.
• Track and analyze critical skills, and predict which skills will be lost and when by predicting turnover.
• Measure turnover, understand its causes and design programs to control it to reduce vacancy costs – both financial and productivity – to avoid their devastating effects on business performance.
• Assess risk on an organization-wide level by integrating workforce and relevant business and third-party data for comprehensive risk analysis.
• Build weighted risk factors into strategic human capital management plans and reduce risk by understanding workforce supply-and-demand patterns.
• Understand and mitigate risk linked to seasonal absences, resignation trends or length of employment to prevent being blindsided by loss of critical workers, skills or leadership.
• Measure, monitor and predict the effect of risk factors over time and prevent organizational risk by devising contingency plans based on insight and foresight.

Features

• Predicted turnover percentage. Ranking by high, medium and low risk of voluntary termination.
• Causes of voluntary termination. Showing each cause identified by the model in an individual report.
• Organization exposure. Looking at the high-risk group only and showing a hierarchical view starting at the top and drilling down through all organizational levels.
• High risk by job category. Identifying those in the high-risk group by EEO job category.
• Top 50 employees at high risk. Pinpointing the 50 employees most likely to voluntarily leave.
• Top performers. Identify high-risk top performers and define their reasons for leaving.

How SAS is Different

• Forecasting capabilities enable managers to accurately plan headcount and skills for any area, even as the organization and markets undergo changes.
• Descriptive and predictive modeling enables managers to analyze the past and look forward to spot trends in key factors related to voluntary termination, absences and other sources of risk.
• Optimization determines the best combination of resources within a given set of constraints. For example, determine how to allocate merit increases to maintain the best pay equity.

1. “Making Talent a Strategic Priority,” The McKinsey Quarterly (January 2008), McKinsey & Company.