HR Signal is a startup that uses algorithms to predict which employees are most likely to leave their current job, and why. High employee turnover is often a sign that a company’s human resources strategy isn’t effective, but it can be challenging for managers to identify who is thinking of leaving.
By analyzing data from public sources, market data, and peer career path data, including a million anonymized resumes, HR Signal’s Employee Retention Engine algorithm can predict which employees are most likely to seek another job.
To protect employee privacy and make onboarding new clients faster, HR Signal uses very little internal data from its clients. The founders of HR Signal came up with the idea while working in the data science industry, where they saw the need to build an algorithm to help recruiters contact only people who are at a point in their careers where they are likely to leave their current positions.
The startup’s team decided to focus on employee retention instead of recruitment after an internal case study predicted a large “turnover event” due to the pandemic. HR Signal’s algorithms consolidate data from external and public sources, including earnings reports, mandatory filings, and IRS reports, to help clients retain employees.
The insights produced by HR Signal include internal mobility, which is the percentage of people who change positions in the workforce, usually through a promotion. Internal mobility is crucial for business continuity and the preservation of talent and tacit knowledge. By analyzing internal mobility, HR Signal can predict which companies will have a better culture and financial performance.
HR Signal’s algorithms can also be used to help diversity, equity, and inclusion initiatives. The startup’s founders are committed to ensuring that their algorithms are used for good and not to exercise biases or inequity.
HR Signal’s clients include HR consulting firm ERC, which is used by 1,500 companies that want to improve their workplace culture and promote from within. The startup has been in prolonged soft beta mode to refine its algorithm’s output and has worked with employers ranging from 30 people up to 3,600. The founders say their ideal client has at least 100 employees because that gives HR Signal more data to use.
In conclusion, HR Signal is a startup that uses algorithms to predict which employees are most likely to leave their current job and why. Its algorithms consolidate data from external and public sources to help clients retain employees and improve workplace culture.