In an ever-increasing corporate landscape, making quality hires is critically important for organizations looking to improve their bottom line. The U.S. Department of Labor estimates that the cost of a bad hire is in excess of 30% of that employee’s first-year earnings.
To reduce the occurrence of bad hires, a growing number of businesses are turning to predictive analytics and big data. Using algorithms to analyze past and current data, these businesses more effectively can predict and adapt to future trends. From the sports world to big-box retailers, predictive analytics in hiring is shifting the paradigm of hiring decisions away from resumes and traditional metrics and towards data-driven analysis and advanced simulations.
The Moneyball Phenomenon
The 2001 Oakland Athletics baseball team enjoyed one of the most successful regular seasons in franchise history. Led by Tim Hudson, Mark Mulder, and Barry Zito, a trio of excellent starting pitchers, the team won 102 games. Their 63-18 record during the 2nd half of the season following the All-Star break today remains the best in MLB history.
Despite the momentum going into the post-season, the A’s faltered in a five-game series against the New York Yankees in the American League Divisional Series. The stage was then set for …