❖ Employee attrition is a significant challenge for organizations, especially those like XYZ, which employs a substantial workforce of approximately 4,000 individuals. With an annual attrition rate of 15%, XYZ faces various operational and strategic difficulties, including delayed projects, increased recruitment costs, and the need to train and integrate new hires. These challenges not only impact the company's financial performance but also its reputation among clients and partners.
❖ To address this issue effectively, XYZ's management has partnered with an HR analytics firm to identify the factors driving employee attrition and determine actionable steps to reduce it. By modeling the probability of attrition and analyzing its key drivers, the company aims to make data-driven decisions to improve employee retention
❖ Understand the Factors Contributing to Attrition: Identify key variables influencing employees’ decisions to leave the organization, including workplace conditions, managerial practices, and personal circumstances.
❖Prioritize Interventions: Determine the most significant factors driving attrition, enabling the company to focus on high-impact areas for immediate action.
❖Recommend Solutions: Provide actionable insights and strategies to enhance employee satisfaction, engagement, and loyalty, thereby reducing attrition rates.
❖ This analysis will not only help XYZ optimize its workforce management but also enhance its competitive edge by creating a stable and motivated workforce. The insights gained from this study can guide long-term strategies for employee retention and organizational growth.
- Data cleaning, transformation, and modeling
- Visualization using TABLEAU
- Business insights generation
A large company named XYZ, employs, at any given point of time, around 4000 employees. However, every year, around 15% of its employees leave the company and need to be replaced with the talent pool available in the job market. The management believes that this level of attrition (employees leaving, either on their own or because they got fired) is bad for the company, because of the following reasons -
The former employees’ projects get delayed, which makes it difficult to meet timelines, resulting in a reputation loss among consumers and partners
A sizeable department has to be maintained, for the purposes of recruiting new talent More often than not, the new employees have to be trained for the job and/or given time to acclimatise themselves to the company Hence, the management has contracted an HR analytics firm to understand what factors they should focus on, in order to curb attrition. In other words, they want to know what changes they should make to their workplace, in order to get most of their employees to stay. Also, they want to know which of these variables is most important and needs to be addressed right away.
Since you are one of the star analysts at the firm, this project has been given to you.
❖ Overall Attrition is Significant: The company faces a notable attrition rate of 16.13%, indicating a need to address underlying issues.
❖ Education Field Disparity: Attrition varies significantly across education fields, with Human Resources, Medical, and Life Sciences showing higher rates.
❖ Age-Related Attrition: The 38-47 age group exhibits the highest attrition, suggesting potential factors unique to this demographic.
❖ Travel Frequency Impacts Attrition: Employees who travel frequently have a higher likelihood of leaving the company.
❖ Marital Status Influences Attrition: Single employees demonstrate the highest attrition rate, highlighting a potential need to address work-life balance concerns for this group.
❖ Overall Attrition is Significant: The company faces a notable attrition rate of 16.12%, indicating a need to address underlying issues.
❖ Departmental Disparity: Attrition varies significantly across departments, with Research & Development showing the highest attrition (2430 employees), followed by Sales (1137 employees), and Human Resources (132 employees).
❖ Job Role Influence: Attrition seems to be highest for employees in "Sales & Product" roles, with a noticeable peak in the chart.
❖ Time Since Last Promotion: Employees who haven't been promoted in 12-15 years have the highest attrition rate (606 employees), suggesting a potential link between career progression and employee retention.
❖ Limited Data on Last Promotion: The data on "Last Promotion" is limited, with only a small number of employees having been promoted in the last 6-11 years or 0-5 years. This limits the ability to draw strong conclusions about the impact of recent promotions on attrition.
❖ Overall Attrition is Significant: The company faces a notable attrition rate of 16.12%, indicating a need to address underlying issues.
❖ Salary Hike and Attrition: There is a slight increase in attrition as the percentage salary hike increases, suggesting that salary may play a role in employee retention. However, the relationship is not very strong.
❖ Training Times and Attrition: Attrition is highest for employees with 1-2 training times last year, indicating a potential link between training opportunities and employee retention.
❖ Years with Current Manager and Attrition: Attrition is highest for employees with 10-14 years with their current manager, suggesting potential issues with long-term manager relationships or lack of career progression opportunities.
❖ Limited Data on Training Times: The data on training times is limited, with only a small number of employees having 13 or more training times last year. This limits the ability to draw strong conclusions about the impact of extensive training on attrition.
❖ Attrition Rate: 16.12% of employees are leaving the company. ❖ Departmental Impact: Research & Development and Sales have higher attrition. ❖ Salary Hike: Slight increase in attrition with higher salary hikes. ❖ Training Impact: Employees with 1-2 trainings last year have higher attrition. ❖ Manager Tenure: Attrition peaks for those with 10-14 years with their current manager.