BALTIMORE, Nov. 19, 2019 /PRNewswire/ — The number of healthcare organizations adopting Arena Analytics’ technology doubled in Q3 2019. This represents an increase from 1.7 million to 4.1 million in the number of job candidates who will experience Arena’s sophisticated predictive analytics algorithms as part of their application process.
At the same time, hospitality and quick-service industries have begun piloting Arena Analytics, bringing the number of unique jobs for which accurate predictions have been made to 525.
As this trend continues, the question will change from ‘Who is using AI in their hiring process,’ to ‘Who is not choosing to leverage these insights?’
Using AI to Increase Retention, Reduce Labor Costs
Machine learning techniques allow Arena to predict for a variety of desired outcomes – retention, quality of care/service, engagement, timeliness, and more. The most common request from employers in today’s tight labor market has been retention predictions.
Experts have long claimed that the most effective way to reduce employee turnover is to ‘hire right.’ However, techniques to do this have not changed for decades, and have not proven effective. Traditional approaches like assessments and the comparison of resumes to job descriptions have become more automated in recent years, and now often claim to ‘use AI’ in their processes. But at their core, they are theoretical evaluations aimed at revealing whether a candidate is capable of doing a job in an abstract context.
By opting for Arena’s predictive analytics tool, organizations are approaching their pervasive employee turnover challenges in an entirely new way.
What exactly do you mean by ‘AI’?
Drawing on multiple data sources, Arena Analytics produces complex, dynamic data-pictures reflecting recent hires who have thrived in their roles. Algorithms continually evolve through machine learning, resulting in remarkably accurate predictions about how prospective employees will perform these jobs in an actual place of work, among real colleagues, managers, and customers.
Arena-recommended hires ‘turn over’ at significantly lower rates than hires Arena does not recommend – ranging from 18%-77% lower, depending on the employer and the specific job. After using Arena, one health system, for example, experienced a 22% overall reduction in new hire turnover and halved their agency labor costs, a $5.4M reduction.
Michael Rosenbaum, Arena’s Founder and CEO, explains, “We help organizations move away from guesswork and unconscious hiring biases to a more objective approach informed by data, advanced analytics, and machine learning. We’re excited to provide value to mission-driven, people-centered organizations across the healthcare and hospitality sectors who share our vision of hiring for outcomes, and matching people to meaningful careers.”
About Arena Analytics (https://www.arena.io/) applies predictive analytics and machine learning to solve talent acquisition challenges. By revealing each individual’s likely outcomes in specific positions, departments, and locations, Arena is transforming the labor market from one based on perception and unconscious bias, to one based on outcomes. Arena is currently growing dramatically within the healthcare industry and expanding its offerings to other people-intensive industries. For more information contact [email protected].
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