From Economic Times:-
KPMG, Wipro, Essar, Igate-Patni use KPMG Predictive Index, Neural Network, Engagement Hypothesis, Five C and Three Circle Tool to predict employee's exit, engagement
BANGALORE: Consulting firm KPMG has recently created a crystal ball. Called the KPMG Predictive Index, it can foretell when an employee will resign. A typical warning sign: A senior manager asks his secretary to check if his stocks have matured, or wants to know how much leave he has left. The secretary logs in to check, and this alerts the Index that the employee's query could be to check his waiting period before he joins the competitor.
"The tool is right seven out of 10 times for junior employees, eight out of 10 times for middle management and nine out of 10 times for the top brass," says Ganesh Shermon, people and practice head for KPMG. Artificial intelligence has been in use for the past three years and nearly 15 companies from the information technology to the telecom and retail sectors have asked KPMG to implement it.
Most companies would give an arm and a leg for a sure-shot way to predict whether an employee will stay or go. The reasoning is that with a competitive market making it possible for employees to hold multiple offer letters, intensive training efforts and investments are often laid to waste. "All other methods are useless. Exit interviews, for example, never reveal the truth because no one wants to ruin their relationship with the company" adds Shermon.
ALERT TO SIGNALS
As statistical tools gain in sophistication, algorithms and business intelligence can now predict an employee's exit even before he puts in his papers. Some of these have alert signals. A green alert on an employee shows he is satisfied, an amber one means he needs help and red one gets the manager to drop everything and sort out thorny issues. The idea is always to spot the weak link before it snaps - and this could either be in the form of a spouse getting a transfer or a loan repayment. Developed by firms like SAP, IBM and Oracle, these tools are considered to be the next step in workforce management.
Analytics tools can also predict customer behaviour, buying patterns, the number of promotions that will be rolled out in the next few years in a company, or even the consequences of retirement.
IT company Wipro, which is battling a high attrition of 23%, has implemented Neural Network, which uses artificial intelligence to map out disgruntled employees over the past two quarters. The Network contains data relating to thousands of employees, and includes their profiles, salary levels, appraisals and projects they have worked upon. Along with the existing workforce, profiles of employees who have left the company and their reasons for doing so are also part of the tool's learning process.
Although the tool does not detect the reason, it sends a red alert to the manager, who then kicks off methods to salvage another departure. "We know we are on the right track because attrition in the group under red alert is twice that outside the group, which proves we have zeroed in on the right people," says Saurabh Govil, senior VP at Wipro Technologies.
KPMG, Wipro, Essar, Igate-Patni use KPMG Predictive Index, Neural Network, Engagement Hypothesis, Five C and Three Circle Tool to predict employee's exit, engagement
BANGALORE: Consulting firm KPMG has recently created a crystal ball. Called the KPMG Predictive Index, it can foretell when an employee will resign. A typical warning sign: A senior manager asks his secretary to check if his stocks have matured, or wants to know how much leave he has left. The secretary logs in to check, and this alerts the Index that the employee's query could be to check his waiting period before he joins the competitor.
"The tool is right seven out of 10 times for junior employees, eight out of 10 times for middle management and nine out of 10 times for the top brass," says Ganesh Shermon, people and practice head for KPMG. Artificial intelligence has been in use for the past three years and nearly 15 companies from the information technology to the telecom and retail sectors have asked KPMG to implement it.
Most companies would give an arm and a leg for a sure-shot way to predict whether an employee will stay or go. The reasoning is that with a competitive market making it possible for employees to hold multiple offer letters, intensive training efforts and investments are often laid to waste. "All other methods are useless. Exit interviews, for example, never reveal the truth because no one wants to ruin their relationship with the company" adds Shermon.
ALERT TO SIGNALS
As statistical tools gain in sophistication, algorithms and business intelligence can now predict an employee's exit even before he puts in his papers. Some of these have alert signals. A green alert on an employee shows he is satisfied, an amber one means he needs help and red one gets the manager to drop everything and sort out thorny issues. The idea is always to spot the weak link before it snaps - and this could either be in the form of a spouse getting a transfer or a loan repayment. Developed by firms like SAP, IBM and Oracle, these tools are considered to be the next step in workforce management.
Analytics tools can also predict customer behaviour, buying patterns, the number of promotions that will be rolled out in the next few years in a company, or even the consequences of retirement.
IT company Wipro, which is battling a high attrition of 23%, has implemented Neural Network, which uses artificial intelligence to map out disgruntled employees over the past two quarters. The Network contains data relating to thousands of employees, and includes their profiles, salary levels, appraisals and projects they have worked upon. Along with the existing workforce, profiles of employees who have left the company and their reasons for doing so are also part of the tool's learning process.
Although the tool does not detect the reason, it sends a red alert to the manager, who then kicks off methods to salvage another departure. "We know we are on the right track because attrition in the group under red alert is twice that outside the group, which proves we have zeroed in on the right people," says Saurabh Govil, senior VP at Wipro Technologies.
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