Workforce Analytics Project: Attrition Drivers

Introduction: This project aims to analyze the relationship between different workforce datasets to identify the underlying causes of employee attrition. The datasets include employee census data, performance ratings, employee satisfaction, customer satisfaction, and attrition data.

Business Problem

A company is experiencing a higher than usual rate of voluntary employee turnover. The objective is to investigate the root cause of the problem and develop actionable strategies to improve employee retention and engagement.

Data Wrangling and Exploration

After importing the data, data wrangling techniques such as data cleaning, merging, and transforming were used. The process involved column header cleaning and left-joining five separate datasets, resulting in a single merged dataset of 200 records and 27 variables (as seen in below’s output).

masked_id attrition exit_date exit_year gender age education race salary overtime job_level marital_status years_at_company years_in_current_role years_since_last_promotion years_with_curr_manager employee_overall_satisfaction job_satisfaction work_life_balance manager_satisfaction culture_description plan_on_leaving_within_the_next_year customer_rating customer_comment performance_rating department top_skill
121314 Yes 2019-02-03 2019 Female 31 Associates Minority 120000 Yes Mid-level Single 6 4 0 5 4 3 2 4 Collaborative Yes Good Great follow-up 4 IT DevOps
121315 Yes 2019-03-06 2019 Male 43 Bachelors Minority 180000 No Senior Executive Married 10 7 1 7 4 2 3 4 Dead-end Yes Excellent Went above and beyond 3 IT DevOps
121316 Yes 2019-03-18 2019 Female 19 High School Diploma Minority 68000 Yes Entry Level Single 0 0 0 0 4 3 3 4 Fun No Poor Poor communication 1 IT Programming
121317 No NA NA Male 25 Masters Minority 120000 Yes Mid-level Married 8 7 3 0 3 4 3 4 Supportive No Good Kept me informed 2 IT Programming
121318 No NA NA Male 26 Masters Minority 120000 No Mid-level Married 2 2 2 2 3 3 3 4 Collaborative No Excellent Very responsive and helpful 4 HR Workforce Planning
121319 No NA NA Male 35 Bachelors Minority 120000 No Mid-level Single 7 7 3 6 2 2 3 4 Tiring No Poor Did not solve the issue 3 HR Human Capital Strategy

The WHAT: Attrition

The attrition analysis focuses on answering the following questions:

  • What is the attrition rate?

  • At what point did attrition take place?

  • Where is attrition taking place within the organization?

  • Who is leaving the organization?

  • What are the drivers behind attrition?

To answer these questions, the data was analyzed using time series analysis, exploratory analysis, and persona development.

The WHEN: At what point did attrition take place?

As this dataset does not contain any hiring data, the assumption is that the total number of employees remained constant of the the three-year period. So, the company had an attrition rate of 6% in 2019, 5% in 2020, and 8% in 2021.

Exploratory Question: Given the shifts in labor market and economic conditions, are there also internal factors (i.e. restructuring or management changes) that could have led to the atypical spike in July 2021?

The WHERE: Where is attrition taking place within the organization?

The WHO: Who is leaving the organization?

The WHY: What are the drivers behind attrition?

Potential Personas of Leavers and Stayers

Recommendations

To address attrition and create a more supportive and engaged workforce, it’s important to take a holistic approach that not only focuses on understanding who has left the organization but also who has remained. Here are some initial recommendations:

  • Given the high turnover among top performers, it’s critical to take a two-pronged approach to address the issue. Firstly, conduct a skills gap analysis to identify areas where the organization may be lacking in skills or expertise. Based on the findings, implement a more robust skills-based hiring strategy that focuses on hiring employees with the skills and expertise that the organization needs to be successful.

  • Develop a robust rotational program and low friction internal mobility opportunities that offer employees exposure to new skills and roles, and helps them advance their career within the organization.

  • Offer tailored development opportunities for upskilling and internal mobility to help employees develop the skills and expertise needed to advance their careers within the organization.

  • Implement mentorship and sponsorship programs that provide underrepresented minorities with access to high-visibility opportunities and create a sense of community and support within the organization.

  • Address discrimination or unconscious bias in the workplace through regular training and education programs that promote diversity and inclusion.

  • Create employee resource groups or affinity groups to provide a sense of community and support for underrepresented employees and promote a culture of belonging within the organization.

  • Ensure that promotions and career opportunities are equitable and based on merit, by creating transparent and objective criteria for advancement.

  • Provide additional training and support to help employees improve their skills, and ensure that they have access to resources that help them succeed in their roles.

  • Conduct regular performance reviews that provide actionable feedback and identify areas for improvement, and ensure that employees have clear and measurable goals to work towards.

  • Consider whether employees are a good fit for their current roles, and offer opportunities to move into more suitable positions within the organization, based on their skills and interests.

By implementing these recommendations, organizations can create a more supportive and inclusive culture that promotes employee engagement, satisfaction, and retention. This will not only help to attract and retain top talent but also ensure that the organization has the necessary skills and expertise to achieve its goals.