HR EMPLOYEE ATTRITION ANALYTICS

(EMPLOYEE CHURN)

Introduction

HR analytics, also referred to as people analytics, workforce analytics, or talent analytics, involves gathering together, analyzing, and reporting HR data. It enables your organization to measure the impact of a range of HR metrics on overall business performance and make decisions based on data. In other words, HR analytics is a data-driven approach toward Human Resources Management.

Human Resource analytics (HR Analytics) is defined as the area in the field of analytics that deals with people analysis and applying analytical research process to the human capital within the organization to improve employee performance and improving employee retention.

HR analytics doesn’t collect data about how your employees are performing at work, instead, its sole aim is to provide better insight into each of the human resource processes, gathering related data and then using this data to make informed decisions on how to improve these processes.

Employee churn analytics is the process of assessing your workforce turnover rate. Employee churn analytics helps predicts the future and reduces employee churn. Historical employee churn is the data collected from the past and specifies the employee churn rate since the start of employment. Predictive and historical churn data both are important for employee churn analytics.

Recommended Analysis

1. Mitigate attrition rates within different categories such as age groups, departments, job roles, business travel frequency, marital status, and educational backgrounds.
2. Highlight the overall attrition rate.
3. Identify and emphasize potential causes of employee attrition.

Data Collection

This data was sourced from an internship program conducted by MeriSKILL.

It can be downloaded here.

Data Transformation

• Added a conditional column for Age group.

• Eliminated redundant columns.
• Applied column name changes.
• Removed duplicate entries.
• Performed data cleaning, which involved getting rid of any missing or Nan values in the dataset.

Exploratory Data Analysis

a) Demographic and statistical information:

• There were 882 females and 588 males among a total of 1470 employees.
• Out of these 1470 employees, 237 decided to leave the organization, while 1233 chose to remain.
• The company experienced an overall attrition rate of 16.12%.

b) Attrition rates segmented by age group reveal that the age group 30–40 exhibited the highest attrition rate.

c)Which department experienced the highest attrition?

The research and development department experienced the highest attrition, while the human resource department had the lowest attrition rate.

d) Which job position experienced the highest work turnover?

Employees who are Sales and Executive personnel had the highest attrition while managers had the least.

e) Employee turnover due to business-related travel.

Workers with rare travel commitments were more inclined to depart the organization when contrasted with their non-traveling counterparts.

f) Marital status of Ex employees

Married workers exhibited the highest attrition rate, while divorced workers had the lowest attrition rate.

g) Attrition by Educational field

The educational field of life science had the highest attrition rate, while the field of human resources had the lowest attrition rate.

h) Distribution of population that worked overtime?

The age group 30–40 witnessed the highest attrition rate among employees, whereas the age group 50–60 had the lowest attrition rate.

I) Was attrition caused by job involvement or total working years?

Based on the analysis, it can be concluded that attrition was not linked to either job involvement or total years of work experience.

j) Were the Employees satisfied with their monthly income?

Out of the total employees, 1233 were content with their monthly income, while 237 expressed dissatisfactions with their monthly earnings.

k) Were Employees satisfied with their jobs?

Employees in job category 4 demonstrated a high level of job satisfaction, while those in job category 2 displayed the lowest job satisfaction.

l) Attrition over year since last promotion and performance rating?

Based on this analysis, it appears that active employees who chose to stay with the company were generally content with both their promotion frequency and performance ratings.

The overall Dashboard

HR Employee Analytics Dashboard.

Observations

• The fact that only 16.12% of employees left the company indicates that the majority of employees were content with their jobs.
• The departure of married employees from the company suggests that attrition may be attributed to diverse factors like relocation, conflicts arising from dual careers, and the struggle to maintain a work-life balance.
• A high attrition rate among the young adult age group implies that various factors may contribute to this phenomenon. These factors could include a strong desire for career advancement, a willingness to seize job market opportunities, the pursuit of a better work-life balance, alignment with company culture, and the potential for burnout due to extensive overtime work. Additionally, it was observed that the young adult population engaged in working overtime more frequently, this can intensify the impact of these factors on their attrition decisions.
• Most of the active employees expressed contentment with their monthly income, and those at the fourth job level were predominantly at ease with their job. This could be attributed to their higher positions within the organizational hierarchy.
• It can also be deduced that employees were somewhat satisfied with their promotion timing and performance ratings, though there is potential for further enhancement.

Recommendation

1. Improve Recruitment and Onboarding:

• Ensure that the recruitment process aligns candidates’ skills and expectations with the job and company culture.
• Enhance the onboarding process to make new employees feel welcome, informed, and well-prepared for their roles.

2. Competitive Compensation and Benefits:

• Offer competitive salaries and benefits to attract and retain top talent.
• Provide performance-based incentives, bonuses, and recognition programs to motivate employees.

3. Employee Development:

• Invest in training and development programs to help employees acquire new skills and advance in their careers within the company.
• Promote a learning culture and provide opportunities for skill-building and growth.

4. Work-Life Balance:

• Encourage a healthy work-life balance to prevent burnout and maintain employee well-being.
• Allow for flexible work arrangements, remote work, and family-friendly policies.

5. Communication and Feedback:

• Maintain open and transparent communication between employees and management.
• Collect and act on employee feedback to address concerns and make necessary improvements.

6. Recognition and Rewards:

• Implement a robust recognition program that acknowledges and appreciates employees for their contributions.
• Create a positive work environment where employees feel valued.

7. Career Advancement Opportunities:

• Offer clear career progression paths and opportunities for employees to advance within the company.
• Promote from within whenever possible to motivate and retain top performers.

8. Leadership and Management:

• Train and support managers to be effective leaders who inspire and motivate their teams.
• Ensure that managers are approachable and empathetic to employee needs.

9. Wellness Programs:

• Promote employee health and well-being through wellness initiatives, mental health support, and stress management programs.

10. Exit Interviews:

• Conduct meaningful exit interviews to understand the reasons for employee departures and identify areas for improvement.

11. Employee Engagement Surveys:

• Regularly measure employee engagement and job satisfaction through surveys to proactively address concerns.

12. Retention Bonuses and Incentives:

• Consider offering retention bonuses or incentives to employees who have been with the company for a certain duration.

13. Talent Analytics:

• Use HR analytics to identify attrition patterns and anticipate potential issues. Address them before they lead to departures.

14. Employee Support Programs:

• Implement employee assistance programs to provide emotional and mental health support to employees facing personal challenges.

The suggestions provided above should prove beneficial in decreasing employee turnover within an organization and enhancing employee retention.

Thanks for reading!