For centuries people have been captivated by the idea of predicting the future (and I’ll be offering my own predictions on the stage in a few days). Crystal ball gazers and fortune tellers all promised to be able to do this. They played on our biases, weaknesses, and gullibility and counted on us attributing chance occurrences to their predictive powers.
But the rise of predictive analytics gives us the ability to reduce uncertainty by applying statistics and determining the probabilities that future patterns will emerge in the behavior of people and systems.
The Internet provides a platform for us to communicate, share, buy, play, and learn. And because people are largely creatures of habit and tend to repeat behaviors, our online activities when combined with today’s computing power and statistical knowledge tell a lot about what we are likely to do. We can give odds, based on science, about what will most likely occur. To do this has required access to mountains of data about what we do, when we do it, how often we do it, and where we do it.
By tracking things such as our location, Facebook likes, retweets, where we check-in, what and when we buy, what we search for and so on, analysts can make reliable predictions as to our future behavior. This data is often called “data exhaust” by analysts, as in and of itself it has no real meaning or value. However, when aggregated, correlated, and combined and then analyzed with the tools of statistics this data becomes not only relevant but commercially valuable.
We are being monitored and watched every time we log into any electronic device whether it is a computer, a mobile phone, a tablet, or a game. And everything we do is collected without us being aware. We do not give permission for it to be collected nor do we have any control over what is collected. And we have no way to turn off the monitoring.
For example, when we buy things, for example, it is not hard to predict that we might buy more of them. It is even possible to narrow this down to specific types of items, the amounts we spend, and the frequency we buy them. Or, when you do something as simple as check in to a restaurant or hotel, you are leaving a location trail as well as an economic trail. Combined with your profession, easily derived from your LinkedIn or Facebook profiles, this data can predict with a high degree of certainty where you are likely to be at a given time, how often you will be there, what kind of hotels you prefer, perhaps even the type of room you prefer, your income, and much more. And all of this can be sold to a hotelier or retailer, for example, without your knowledge or permission.
Predictive analytics has had tremendous commercial benefits. Firms such as Amazon are built on predictive analytics that help them predict what we will buy, how much of it, and when, so that they can stock warehouses and order products before they are needed. Most retailers are investing in hiring analysts, which is a growing field.
Much of the work in developing predictive analytics has been paid for by Madison Avenue, Wall Street, and the retail world. We are marketed to heavily based on our location, age, socio-economic status and past behavior. Products are recommended to us based on a prediction about what we are likely to buy.
Shoshana Zuboff, a Harvard professor and no fan of predictive analytics, has focused her research on the study of the rise of the digital, its individual, organizational, and social consequences, and its relationship to the history and future of capitalism. She is concerned that we are applying analytics to making money and toward turning us all into “slaves” of the commercial world.
She says, in her article entitled “A Digital Declaration”:
Now the focus has quietly shifted to the commercial monetization of knowledge about current behavior as well as influencing and shaping emerging behavior for future revenue streams. The opportunity is to analyze, predict, and shape, while profiting from each point in the value chain.
All humans have biases, and many that tend to impact human resource professionals and recruiters.
The selection and hiring of people is fraught with bias and subjectivity. Psychologists have assembled long lists of these biases which include our tendency to reject new evidence that contradicts something we believe to be true. Or the tendency to search for and remember information in a way that confirms our preconceptions. Recruiters need to do everything they can to make objective and unbiased decisions — even though perfect objectivity is never going to be possible. I offer a few suggestions below on how to reduce the impact of biases.
There are numerous common biases. For example, if we believe that people with high GPAs, for example, are better workers, then we will seek evidence to prove that and dismiss any that contradicts it. We call that confirmation bias.
Recruiters also often rely too heavily on one trait or piece of information when making decisions — often the first piece of information acquired or the information obtained from a trusted source. If someone recommends a candidate, for example, that recommendation may outweigh any facts that contradict or suggest that the person is not so good.
Many recruiters and hiring managers also suffer from what is called the “Hothand effect” which is the fallacious belief that a person who has experienced success doing something has a greater chance of further success in additional attempts.
We know from research and experience that most of these biases are unfounded and cannot be shown to be decisive in performance, yet we have a hard time believing they are not critical.
Analytics can help dispel many of these, but only if the results of the analysis are believed and acted on. We need to trust the data more than our gut, and although data is not always right, the percentages are on the side of the data. There are also many instances where our biases were unconsciously built into the algorithms that analyze our data, so understand what is being measured in an algorithm and with what weighting.
Analytics can offer insight and help make sense of mountains of data that have been beyond our reach. Analytics can help us make choices that are based on facts. They can provide us insights and reduce uncertainty. But, as with everything, there are dangers. We need to troll the waters of data with care, ethics, and human judgement.
Each of us, whether recruiter or candidate, has a responsibility to actively think about our prejudices and biases and work to manage their impact on our decisions.
For Recruiters:
For Candidates:
I have not addressed all the possible biases, but this list should help you interview better whether a recruiter or a candidate.
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