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Analyze Key Drivers of Employee Engagement by Understanding Shared Variance

Shared variance is an important concept to understand when working with HR analytics. This impacts all types of analytics including diversity analytics, recruitment analytics, retention strategy and performance management as it is an integral part of producing predictive reports.

Shared variance is when there is a shared overlap between the two variables. This can be used to, for example, predict if those who performed best at competency assessments at the recruitment stage will perform well on the job after a year. By tracking the overlap between high performers in competency assessments and high performers after a year, a correlation can be identified using shared variance.