Analyst Project

IBM HR Analytics Employee Attrition & Performance Analysis



Introduction

You are a Data Analyst working for a Human Resources Department. You are tasked with preparing a presentation to present answers for the attrition of employees in Company. And Building the Machine Learning Model to predict the employee who has high possibility to attrit from company.


For cleaning steps, you can access my github.

1.Overview

Employee Attrition : Out of a total of 1470 employees, 1233 have left the company, indicating a significant attrition rate.

Gender Distribution : The workforce is predominantly male, constituting 60% of the employees, while females make up the remaining 40%.

Age Profile : The average age of employees in the company is 37 years, which falls in the medium range.

Marital Status : A noteworthy concern is the high proportion of employees who are divorced, which may contribute to a higher likelihood of attrition.

Departmental Composition

  1. The company's workforce is primarily concentrated in the Research and Development (R&D) department, accounting for over two-thirds of all employees.
  2. The Sales department makes up 29% of the workforce.
  3. The Human Resources (HR) department has the smallest share, comprising only 4% of the total employees.


2.Employee Demographics

Gender and Attrition : The rate of attrition appears to be consistent between male and female employees, with no significant gender-based differences in the decision to leave the company.

Age and Attrition : Notably, younger employees show a higher tendency to leave the company. This could be attributed to their stage in life, as they may be less settled and more open to exploring different career opportunities. The average age of employees who have left the company is 37, while the average age of current employees is 40, suggesting that the younger workforce is more prone to attrition.

Marital Status and Attrition : Employee marital status plays a role in attrition. Single employees, who may be less impacted by family obligations or personal crises compared to divorced employees, exhibit a higher propensity to seek new employment opportunities. Approximately 25% of single employees have left the company in pursuit of more interesting work environments, whereas only about 10% of married and divorced employees have made the same choice.

Distance from Home and Attrition : Employees facing longer commutes or larger gaps between their homes and the company are more likely to leave their current positions in search of job opportunities that are closer to their residences.


3. Working Experience

A significant factor influencing employee attrition is the level of attachment or tenure within the company. Employees who exhibit a higher likelihood of leaving the company tend to have shorter tenures. On average, employees who are more inclined to leave the company have spent approximately 5.13 years at the company. In contrast, those who are still with the company have an average tenure of 7.37 years.

Similarly, the average number of years with the current manager and in the current position is lower for employees considering leaving, at 2.9 years, compared to those who have chosen to stay, with averages of 4.4 years with their current manager and 4.5 years in their current position.

This data suggests a strong correlation between employee attachment, as indicated by years at the company, years with the current manager, and years in the current position, and the likelihood of attrition. Those with shorter tenures and less attachment to their current roles or supervisors are more prone to leaving the company, possibly in search of better opportunities or a change in work environment. Understanding these attachment dynamics can be crucial for developing strategies to improve employee retention.


4. Job Satisfaction & Job Involvement

Graphs illustrating job satisfaction and job involvement reveal a striking trend. Employees who have received low ratings of 1 exhibit a significant tendency to leave the company. This trend is corroborated by the average scores of attrited employees, which are notably lower than those of retained employees.

Several other factors significantly contribute to employee attrition, including overtime, business travel, and working life balance. Employees who frequently engage in overtime work or extensive business travel are more likely to leave the company when compared to those with less involvement in these activities.

A critical aspect is the impact of working life balance on employee attrition. When employees struggle to balance their work and personal lives, it can exert considerable pressure on their mental well-being, potentially resulting in reduced job performance and job satisfaction. Notably, employees who rate their working life balance as low, typically represented by a score of 1, have an alarming attrition rate of over 30%.


5. Department

Departments like Sales and HR, which frequently face the pressure of meeting deadlines and goals, exhibit a higher motivation to leave the company compared to departments like R&D.

A detailed examination reveals that managers, who possess the ability to handle job pressure and have strong connections with the company, are significantly less likely to leave their positions. The attrition rate for managers consistently remains below 10%.

The job level also plays a crucial role in attrition. As employees advance to higher job levels, their likelihood of leaving the company decreases. Higher-level job positions have lower attrition rates.


6. Compensation & Benefit

Notably, the data shows that the Low Income Group, typically earning less than $5,000, has the highest attrition rate. This suggests that salary levels are a significant factor in employee retention. Additionally, employees who do not believe in the sustainable development of the company, often indicated by their choice to forego stock options, exhibit a higher likelihood of leaving the company when compared to other groups.

Another noteworthy aspect is the impact of training. Employees who did not receive any training in the previous year are twice as likely to quit compared to those who received training (28% & 15%). Training programs can have a substantial influence on employee satisfaction, engagement, and skill development, making them a valuable tool in reducing attrition rates.


7. Conclusion & Recommendation

🚩 I believe that by addressing these factors and implementing these recommendations, you can create a more favorable work environment and improve employee retention, ultimately contributing to the long-term success of your organization :

  • Competitive Salary Structures : Ensure that salary levels are competitive, particularly for low-income groups. Review and adjust compensation packages to align with industry standards to prevent attrition driven by dissatisfaction with income.
  • Stock Options and Employee Buy-In : Encourage employees to invest in the company's future by providing attractive stock options. This can create a sense of ownership and commitment to the organization's long-term success.
  • Training and Development Programs: Invest in comprehensive training and development programs for employees. This not only enhances their skills but also boosts job satisfaction and engagement. Ensure that all employees have access to training opportunities.
  • Focus on Job Satisfaction: Pay attention to factors impacting job satisfaction, such as workload, work-life balance, and manager-employee relationships. Addressing these issues can reduce attrition rates, especially in high-pressure departments like Sales and HR.
  • Mentoring and Leadership Development: Implement mentoring and leadership development programs, especially for employees in managerial roles. Building strong connections and leadership skills can significantly reduce turnover in these positions.
  • Recognition and Rewards: Recognize and reward employees for their contributions and achievements. This can boost morale and job involvement, making employees less likely to consider leaving the company. Consider implementing performance-based incentives that reward employees for meeting targets and goals, especially in departments with high pressure to achieve deadlines and objectives.
  • Work-Life Balance Initiatives: Promote work-life balance initiatives, such as flexible work hours, remote work options, and stress management programs. This can help reduce the pressure on employees and improve their well-being.
  • Regular Attrition Analysis: Continuously monitor and analyze attrition data to identify trends and patterns. This enables you to adapt retention strategies as needed and stay proactive in retaining talent.