Chapter 5Predictive Statistics Examples

A journey of a thousand miles begins with the right map.

Measurement is a journey. As seen in the example in Chapter 4, the journey takes time, and the value of the information improves with feedback and iterations. The needs of an organization vary by industry, by size, by purpose, and by many other factors. Yet many measures cut across these factors and effectively describe the valuable contributions human resources (HR) makes every day. Not every journey begins with a destination in mind, but expedient, purpose-driven journeys do.


One recommended destination comes from the Center for Talent Reporting (, and it is based on the Talent Development Reporting Principles (TDRP). TDRP is very similar in purpose to the two models that guide the accounting industry: generally accepted accounting principles and generally accepted auditing standards. TDRP is designed for reporting human capital information to executives. The framework builds on Boudreau and Ramstad’s model of performance optimization.1 An organization that can monitor its efficiency, effectiveness, and outcomes can begin to adjust the inputs and optimize performance.

Reflecting on the example of the various reports shared in Chapter 4, a comprehensive report for the vice president (VP) of HR should include measures of efficiency, effectiveness, and outcomes. The purpose of the TDRP is to develop a tool to communicate ...

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