Disclaimer

Note: This information and salary data are not real and have been randomly generated for practice purposes.

Understanding Employee Turnover

Employee Turnover refers to the phenomenon of an employee ending their formal relationship with an organization. In essence, it signifies the gradual loss or exit of employees over time. The terms - employee churn, employee turnover, and employee attrition - are often used interchangeably in the corporate domain.

Why Employee Turnover Matters?

Employees, being the cornerstone of an organization, accentuate its value. A predominant challenge that organizations grapple with today is employee retention. Alarmingly, a vast segment, almost a quarter of all U.S. workers, opts to resign annually. In specific sectors, this rate takes a dramatic leap. Citing the Society of Human Resource Management (SHRM), the financial implications of replacing an employee can range from 50-60% of the employee’s salary, with overarching costs surging to 90-200%.

Types of Employee Turnover

Employee turnover can be dichotomized into: - Voluntary Turnover: This transpires when an employee, on their volition, chooses to resign. - Involuntary Turnover: This is an organizational call, where the entity decides to release an employee. This could stem from contractual obligations, organizational restructuring, or disciplinary measures.

Hidden Reasons for Employee Turnover

Underlying reasons for exits often remain shrouded in mystery as employees generally refrain from disclosing them. This course promises revelations, unearthing hidden reasons that might propel turnover. Factors like relationships with superiors, recent salary revisions, extended working hours, commute duration, career satisfaction, and tenure could be pivotal.

Data exploration

First 10 records of org_data
emp_id status turnover location level date_of_joining date_of_birth last_working_date gender department mgr_id cutoff_date generation emp_age
E11061 Inactive 1 New York Analyst 22/03/2012 22/03/1992 11/09/2014 Male Customer Operations E1712 31/12/2014 Millennials 22.5
E1031 Inactive 1 New York Analyst 09/03/2012 10/01/1992 05/06/2014 Female Customer Operations E10524 31/12/2014 Millennials 22.4
E6213 Inactive 1 New York Analyst 06/01/2012 06/02/1992 30/04/2014 Female Customer Operations E4443 31/12/2014 Millennials 22.2
E5900 Inactive 1 New York Analyst 22/03/2012 19/12/1991 09/04/2014 Female Customer Operations E3638 31/12/2014 Millennials 22.3
E3044 Inactive 1 Florida Analyst 29/03/2012 10/12/1991 23/01/2014 Female Customer Operations E3312 31/12/2014 Millennials 22.1
E4008 Active 0 Florida Assistant Manager 27/11/2013 06/05/1992 NA Female Customer Operations E13933 31/12/2014 Millennials 23.0
E6636 Active 0 New York Specialist 17/02/2012 23/01/1992 NA Male Customer Operations E12038 31/12/2014 Millennials 23.0
E13796 Inactive 1 New York Analyst 30/03/2012 19/12/1990 11/05/2014 Male Customer Operations E10524 31/12/2014 Millennials 23.4
E13549 Active 0 New York Analyst 09/03/2012 22/12/1991 NA Male Customer Operations E10524 31/12/2014 Millennials 23.0
E13430 Inactive 1 New York Analyst 09/03/2012 19/08/1991 16/10/2014 Female Customer Operations E12897 31/12/2014 Millennials 23.2

What proportion of employees have left?

Turnover by Location
location total_employees employees_left turnover_rate
Chicago 390 127 32.56410
Florida 1052 111 10.55133
New York 849 172 20.25913

Employee Counts by Level for Analyst and Specialist
level n
Analyst 1604
Specialist 350
Turnover Rate by Rating
rating turnover_count total_count turnover_rate
Above Average 73 556 0.1312950
Acceptable 236 1068 0.2209738
Below Average 65 169 0.3846154
Excellent 4 131 0.0305344
Unacceptable 19 30 0.6333333
Mean Effectiveness Score by Status
status mean_effectiveness_score
Active 0.7081689
Inactive 0.5685164