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Employee Churn: Cost Reduction and Predictive Analytics

HR analytics has become increasingly important in generating quantitative data to create strategic value for HR. Discuss how quantitative data can help strengthen the credibility of the HR function

The complexity of the HRM function cannot be underestimated, as it involves decision making on multiple levels while establishing the coherent approach of hiring and monitoring the employees’ performance (Noe, Hollenbeck, Gerhart, & Wright, 2015). The quantitative metrics are actively utilized while determining the employees’ KPI and ability to reach success. Nonetheless, it is evident that this type of results lacks the inside information about the determinants of the performance and unable to predict the flow of the events.

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The case refers to the fact that the traditional modes of analysis fail to provide descriptive information about the existence of the inability to explain the reasons for the employees’ desire to quit and lack of expertise to pass the final test (Roberts, 2015). The primary focus of the case is the establishment of meaningful metrics, which enhance the fundamental functions of the HRM such as hiring qualified personnel and maintaining performance on a high level. In this instance, quantitative analysis is not able to provide extensive data to determine the possible reasons for the existence of the problems.

Qualitative analysis is one of the methods, which can be actively utilized the performance to improve the state of the organization (Anderson, 2004). According to the case study, the establishment of sufficient qualitative analysis helps determine the potential of the future employees’ ability to pass the exam and be able to contribute to the company’s success (Roberts, 2015). Nonetheless, it has to be understood that the introduction of qualitative metrics involves higher risks as the precise definitions of the aspects have to be proposed. In this case, considerable attention has to be paid to the consistency of the definitions of ‘poor’ and ‘successful’ to establish the relevant talent metrics (Roberts, 2015).

In the end, qualitative metrics allows the presence of the modifications of the predictive analytics (Roberts, 2015). This factor helps enhance the ability of human resource management to utilize critical thinking while making hiring decisions. Nonetheless, it is evident that in this instance, the presence and active utilization of the qualitative analysis attribute to strengthening the credibility of the primary HRM functions such ability to define potential in the employees and improve the overall performance of the company.

Nonetheless, the integration of qualitative and quantitative data has to be used to establish the coherent prospects of the HRM’s ability to monitor and eliminate possible malfunction in the flow of the activities among the employees.

The HR topic to be addressed in our course in the next couple of weeks deals with performance management. And, it is noted in this article that performance is critical. Describe the role that performance plays in HR analytics, and in increasing employee retention

It is evident that performance plays a critical role while establishing and understanding HRM analytics. Performance management is one of the necessities for the sufficient functioning of the company (Noe et al., 2015). It is apparent that it contributes to the understanding of the particular aspects, which can be modified to improve the quality of the overall performance. Nevertheless, the primary goal of the case study is to emphasize the effect of performance management on the increase in employees’ retention and HRM’s analytics.

Nonetheless, it is apparent that the role of performance management cannot be underestimated, as it defines the strategy and the ability of the company to enhance the current determinants of the firm’s success. It could be said that performance and HR analytics are interdependent, as the flow of the HRM’s actions is dependent on the ability of the company to identify the primary reasons for the malfunction of the overall performance.

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The existence of this dependence allows having the connections between the actions of HRM and performance management. It is evident that the case helps realize that human resource management implies the practical implementation the performance management techniques. It is apparent that the HRM’s analytics involves the utilization of qualitative and quantitative measures, which define the strategic decision-making in the overall organization. In the end, the interdependence between the performance management and HRM’s analytics cannot be unnoticed, as both of them have similar intentions of advancing the company’s performance and enhancing the working conditions of the employees.

As for the role of performance management in the context of the employees’ retention, it could be said that the established qualitative and quantitative measures allow calculating the costs of employee churn (Roberts, 2015). In this instance, the performance management helps identify the effectiveness of the workers’ jobs and the necessity to prove certain benefits to increase the employees’ retention.

The qualitative analysis, which is actively utilized to determine the effectiveness of the actions of the employees, contributes to the understanding of the drivers of the employees’ success and essentialities for the modifications of the particular features. It is apparent that this aspect increases the employees’ retention, as the primary features are vehemently assessed. Lastly, the performance management determines the potential outcomes and differentiates employees as being ‘good’ or ‘bad’; this aspect helps ascertain the length of the tenure and the ability to deliver success (Roberts, 2015). In conclusion, it is evident that performance management defines the decision-making of the HRM and underlines the importance of various analytics while enhancing a company’s success.


Anderson, V. (2004). Research methods in human resource management. London, UK: Chartered Institute of Personnel and Development.

Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2015). Fundamentals of human resource management. New York, NY: McGraw-Hill Irwin.

Roberts, G. (2015). Reducing the costs of employee churn with predictive analytics. Web.

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