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5 misconceptions about people analytics

October 02, 2018 / Erik van Vulpen

People analytics is on the rise. In this article, I want to go over five common misconceptions that keep coming back. I want to demystify these false ideas and I saved the biggest one for last! Let's dive right in. Misconception 1: People analytics predictions are accurate. One of the main challenges in people analytics is predicting complex human behavior. Predictive analytics will never predict behavior with a 100% accuracy. An algorithm that predicts performance (or any other behavior) with an accuracy of 40% is already very good. The big advantage of people analytics lies in the difference between what algorithms can do and what people do: even at 40%, algorithms are still better at predicting performance than humans. How accurate you can make your predictions has everything to do with your input and output data. If you have relevant and high-quality input data and are also able to assess the outcome very accurately, your algorithm will be even better.