ScaleneWorks People Solutions LLP (ScaleneWorks), is a Bangalore-based talent management company, which commenced its operations in the summer of 2010 with a vision to build an organization of great value and be among the most respected talent acquisition solution providers globally.
Sanjay Shelvankar, CEO of ScaleneWorks was considering the use of an analytical approach to predict renege. Past data from Indian IT companies revealed that 30% of the candidates did not join the company after offer acceptance, which significantly increased the overall cost of recruitment. Sanjay wondered if Analytics could possibly help in identifying the key drivers that influence a candidate in either joining/not-joining a company after accepting the offer, as it would largely help clients save both cost and time. However, there was a risk involved: any error in this prediction could turn out to be a costly affair, as the client could ‘‘wrongly’’ reject a potential candidate even without interviewing him/her.
The case is ideal for teaching classification problems in analytics and application of analytics in human resource management. The instructor can demonstrate logistic regression model building and model validation through several statistical tests such as Wald’s test, Likelihood ratio test, and Hosmer–Lemeshow test. The case will also be helpful for discussing concepts such as sensitivity, specificity, area under receive operator characteristic (ROC) curve and Youden’s index.