AI Case Study

IBM bases employee reviews on not only past performance but on 96% accurate predictions of future performance using machine learning models

When making bonus, pay and promotion decisions, IBM considers Watson’s assessment rating in addition to an employee's performance. Watson analytics gather data on an employee’s experiences and projects to make predictions of the potential skill each person will be able to contribute to the company in the future, using AI. The company claims that in comparison to their HR internal analysis, Watson has a 96% prediction accuracy rate, which they validate against employee performance.

Industry

Technology

Software And It Services

Project Overview

"Using artificial intelligence, Watson Analytics looks at an employee’s experiences and projects to infer the potential skills and qualities each person might have to serve IBM in the future. Watson also scours IBM’s internal training system to see if an employee has gained new skills. Managers then take Watson’s assessment rating into account as they make bonus, pay and promotion decisions.

'Traditional models said if you were a strong performer in your current job that was the singular way that you got a promotion,' said Nickle LaMoreaux. 'Well, we certainly still care about performance,' she said. But that now includes hypothetical future performance, too."

Reported Results

"IBM claims Watson has a 96 percent accuracy rate, as compared to IBM’s internal analysis with HR experts. The company spot-checks employee performance against its predictions."

Technology

"Using artificial intelligence, Watson Analytics looks at an employee’s experiences and projects to infer the potential skills and qualities each person might have to serve IBM in the future."

Function

Human Resources

Training And Career Development

Background

"Historically, employers used past accomplishments as the sole metric for compensation decisions, premised on the idea that the past is prologue. The method worked when job tasks stayed relatively static over time, but 'the half-life of skills is getting shorter and shorter,' said LaMoreaux, vice president for compensation and benefits at IBM. What employees could do yesterday matters less than what they can potentially do tomorrow."

Benefits

Data

Employees' experiences and projects