Employee Attrition
Investigating your Employees Attenuation
This analysis is done to understand the leading causes behind employees staying or leaving their company. The analysis is an in-depth study of metrics associated with attrition rate for employees. The data is received from IBM data scientists in order to analyze their business policy for human resources, which in this case is understanding the reasons to manage human resources inside the organization in a much better way. Our goal is to help the organization retain its employees for the long haul and reduce its attrition rate to a greater extent. In accord with this focus, my analysis will be providing them with analytical insights and showcase a prediction of attrition rate in the future.
What leads to Employee Attrition?
An 'Attenuation', commonly known as 'a reduction in strength' occurs in an organization, when the employees' needs are not met or the goals of the company are aligned with that of its workers. This could mean unhappy employees.
There may be numerous factors leading to employee attrition. They may be unhappy due to work stress like overtime or no job satisfaction or may simply jump companies for their own growth. With our data analysis, we intend to detect such factors and help our Human Resources approach their employees or new hires with more care. As said- "Happy Employees means Happy Company".
Step-wise Approach:
When skimming through the sample set, binary information on employees intending to leave was noted. This helped in the choice of making a binomial regression model, namely, the Logistic Regression Model for the predictive analysis of the data set. To start with our analysis, it was pivotal to understand the factors involved in attenuation. For this, a dig into the human resource management was important, which was possible in a few meetings with some HRs and company long-term employees. This further research brought to light, that data here, denotes cases that could have an inclination towards leaving companies. We carried out our data analysis using R, discovering important variables impacting employees' decision to leave their current employer, visualizing reports from data, and then creating a dashboard for easy tracking and reporting through PowerBI.
To apply a modeling technique to predict Attrition, we needed to understand the companies' work environment and culture. We categorized the employees into groups of job satisfaction and others, as these sample distributions may give a clear insight into their work life.
Happy or Unhappy Employees
Know thy Employees:
Are they satisfied?
Why are they leaving?
Are they well compensated?
What change can we bring to our work culture?
Some Insights:
Upon intense analysis, we found that the company is facing nearly 16% of employee attenuation annually.
Approximately 23.5% of employees with job specifications of frequent travel showed a tendency of attrition often. Almost 25% of the employees who leave their company have their marital status as single.
Most of the employees that have a high tendency of jumping the ships are millenials. Employees in their ages between 28 to 37 seems to be focused on career growth and may intent to switch companies for the same. The rate of attrition decreases as we move through the generations above or the fresh graduates.
Most people who have left the company have showcased a rating of 3 out of 5 for their work-life balance in the organization. This, when correlated with their personal feedback, led to the discovery that such employees' growth was not met to the extent they expected at the company. A poor to average Job satisfaction is one of the major reasons for employees to opt for a change in workplaces.
We also noticed that the Monthly-Income of employees is greatly proportionate to their Years at a company. The longer they stay with the company or work at the company, the higher the increase in their monthly income is seen.
This could be one of the reasons why highly ambitious employees intend to switch companies for their career growth or earnings with respect to their market value.
Results and Reports:
Project Attrition.pptxYou can check the full report here...
You can have a glimpse of dashboard here...
Recommendations
By focusing on the aforementioned factors, we can reduce employee attrition by almost 50% in the organization. With our predictive analysis, we can deduce attenuation to be almost 7.5% for an organization.
Companies should change their work culture that matches the job satisfaction of the employees to a betterment
New projects and training developments would help employees stay current with the market requirements and would hence motivate them to grow along with the company. This way goals of both parties will be aligned.
Benefits and Promotions are rewards that all employees wish to reap. We should focus on recognizing talents company-wide and award them for the same.