• The Wall Street Journal, Tuesday, May 19, 2009 11:30 AM

Google is addressing the problem of employee turnover in a typically Google way: by using an algorithm. Indeed, the Wall Street Journal reports that the search giant has begun taking data from employee reviews and promotion and pay histories and crunching them into a mathematical formula that identifies which of its 20,000 employees are most likely to quit. Among the inputs are surveys and peer reviews, which Google says helps identify employees who feel underused, a key complaint among those who contemplate leaving the company.

According to the Journal, applying a complex equation to solve a human resource problem falls in line with the company's goals, as stated in its "Ten Golden Rules" outlined in 2005, which called for, among other things, using heavy data to drive decisions. Edward Lawler, director of the Center for Effective Organizations at the University of Southern California, says Google is "clearly ahead of the curve, but a lot of companies are waking up to the fact that there is a lot of modeling that can provide you with critical data on human capital.

Google is applying knowledge gleaned from the staffing algorithm to prevent its most promising engineers, designers and sales executives from leaving. Google wouldn't provide details of the algorithm, but Laszlo Bock, who runs human resources for the company, said the program helps it "get inside people's heads even before they know they might leave."

Read the whole story at The Wall Street Journal »