Final Project
Sri S
10/08/2021
Loading Data
Prepare Data to answer the following questions then visual will explain clearly about how the employee are valuable to the organization.
Wonderful article written by Josh Bersin, who is Global Industry Analyst, study all aspects of HR, business leadership, corporate L&D, recruiting, and HR technology
Employee Retention Now a Big Issue: Why the Tide has Turned
Try to get the answer for the following questions.
- When employee leaves
- Who is the high performer
- At what point the company will lose their stream
## # A tibble: 1,470 x 5
## EmployeeNumber Department JobRole PerformanceRati~ Attrition
## <dbl> <chr> <chr> <dbl> <chr>
## 1 1 Sales Sales Executive 3 Yes
## 2 2 Research & Devel~ Research Scienti~ 4 No
## 3 4 Research & Devel~ Laboratory Techn~ 3 Yes
## 4 5 Research & Devel~ Research Scienti~ 3 No
## 5 7 Research & Devel~ Laboratory Techn~ 3 No
## 6 8 Research & Devel~ Laboratory Techn~ 3 No
## 7 10 Research & Devel~ Laboratory Techn~ 4 No
## 8 11 Research & Devel~ Laboratory Techn~ 4 No
## 9 12 Research & Devel~ Manufacturing Di~ 4 No
## 10 13 Research & Devel~ Healthcare Repre~ 3 No
## # ... with 1,460 more rows
Part 1
How calculate the Employee values and when the Employee become valuable asset to the organization.
- Value of the Employee Over the Period of Time
- New Hire
- This is when the Employee begins Employment at the company
- On-boarding
- This is process of new employee integrating within the company and its culture as well as getting new hire a tool and information that needed in order to become a productive member of the team
- Training
- This is the process of building the skills of the employee so that they can perform high level
- New Assignment
- This is the collection of the projects and tasks that the employee completes
- Investment Zone -This is where the organization investing in employee to do his or her job
- Return Zone
- This is the period during the employee returning the value to organization
- As time continues the organization value increases while the employee become more productive member of the organization
- Economic Value of the employee of the organization over time
- The employee progresses and eventually he or she leaves the company
- EV(t) = Value(t) – Cost(t)
- The value provided by the employee minus cost incurred by the organization
## # A tibble: 10 x 7
## Department JobRole Attrition n pct above_industry_~ cost_of_attriti~
## <chr> <chr> <chr> <int> <dbl> <chr> <dbl>
## 1 Sales Sales R~ Yes 33 0.398 Yes 2589950
## 2 Research &~ Laborat~ Yes 62 0.239 Yes 4865967.
## 3 Human Reso~ Human R~ Yes 12 0.231 Yes 941800
## 4 Sales Sales E~ Yes 57 0.175 Yes 4473550
## 5 Research &~ Researc~ Yes 47 0.161 Yes 3688717.
## 6 Research &~ Manufac~ Yes 10 0.0690 No 784833.
## 7 Research &~ Healthc~ Yes 9 0.0687 No 706350
## 8 Research &~ Manager Yes 3 0.0556 No 235450
## 9 Sales Manager Yes 2 0.0541 No 156967.
## 10 Research &~ Researc~ Yes 2 0.025 No 156967.
The above visual is not clear, so I copy and paste the zoomed image below
A caption
Part 2
Employee Retention Life Cycle
- An employee starts as new hire, the organization initially has negative value
- Initially organization gaining little value but having high cost of paying wages and benefits also providing training and so on.
- Eventually the organization reaches the break even point typically first year for the less complex jobs possibly on second year for the more complex jobs. This is when the employee sufficiently trained as begin to create enough value to off set investment of the organization.
- As employee grows and advances the organization gains much more value to more than off set the cost the economic value then very high.
- Investment Zone
- Return Zone
- When an employee leave
- The employee leaves
- The organization searches for the replacement
- The new employee hired and reinvested
- There is cost to this loss in terms of time and productivity, often largest for the organization, it is very difficult to measure because it is indirect
- Not all employees are created equal, employee productivity various because this every employee has different chart. Some attrition is very necessary, and some employees have low productivity, however good employee leave that is losing a high performer
- Employee turnover creeps up steadily, however, turn over can have drastic effect of employee morale, productivity, and organizational success.
## # A tibble: 1,470 x 35
## Age Attrition BusinessTravel DailyRate Department DistanceFromHome
## <dbl> <fct> <fct> <dbl> <fct> <dbl>
## 1 41 Yes Travel_Rarely 1102 Sales 1
## 2 49 No Travel_Frequent~ 279 Research & Devel~ 8
## 3 37 Yes Travel_Rarely 1373 Research & Devel~ 2
## 4 33 No Travel_Frequent~ 1392 Research & Devel~ 3
## 5 27 No Travel_Rarely 591 Research & Devel~ 2
## 6 32 No Travel_Frequent~ 1005 Research & Devel~ 2
## 7 59 No Travel_Rarely 1324 Research & Devel~ 3
## 8 30 No Travel_Rarely 1358 Research & Devel~ 24
## 9 38 No Travel_Frequent~ 216 Research & Devel~ 23
## 10 36 No Travel_Rarely 1299 Research & Devel~ 27
## # ... with 1,460 more rows, and 29 more variables: Education <fct>,
## # EducationField <fct>, EmployeeCount <dbl>, EmployeeNumber <dbl>,
## # EnvironmentSatisfaction <fct>, Gender <fct>, HourlyRate <dbl>,
## # JobInvolvement <fct>, JobLevel <dbl>, JobRole <fct>, JobSatisfaction <fct>,
## # MaritalStatus <fct>, MonthlyIncome <dbl>, MonthlyRate <dbl>,
## # NumCompaniesWorked <dbl>, Over18 <fct>, OverTime <fct>,
## # PercentSalaryHike <dbl>, PerformanceRating <fct>,
## # RelationshipSatisfaction <fct>, StandardHours <dbl>,
## # StockOptionLevel <dbl>, TotalWorkingYears <dbl>,
## # TrainingTimesLastYear <dbl>, WorkLifeBalance <fct>, YearsAtCompany <dbl>,
## # YearsInCurrentRole <dbl>, YearsSinceLastPromotion <dbl>,
## # YearsWithCurrManager <dbl>
## # A tibble: 1,470 x 35
## Attrition Age BusinessTravel DailyRate Department DistanceFromHome
## <chr> <dbl> <chr> <dbl> <chr> <dbl>
## 1 Yes 41 Travel_Rarely 1102 Sales 1
## 2 No 49 Travel_Frequent~ 279 Research & Devel~ 8
## 3 Yes 37 Travel_Rarely 1373 Research & Devel~ 2
## 4 No 33 Travel_Frequent~ 1392 Research & Devel~ 3
## 5 No 27 Travel_Rarely 591 Research & Devel~ 2
## 6 No 32 Travel_Frequent~ 1005 Research & Devel~ 2
## 7 No 59 Travel_Rarely 1324 Research & Devel~ 3
## 8 No 30 Travel_Rarely 1358 Research & Devel~ 24
## 9 No 38 Travel_Frequent~ 216 Research & Devel~ 23
## 10 No 36 Travel_Rarely 1299 Research & Devel~ 27
## # ... with 1,460 more rows, and 29 more variables: Education <dbl>,
## # EducationField <chr>, EmployeeCount <dbl>, EmployeeNumber <dbl>,
## # EnvironmentSatisfaction <dbl>, Gender <chr>, HourlyRate <dbl>,
## # JobInvolvement <dbl>, JobLevel <dbl>, JobRole <chr>, JobSatisfaction <dbl>,
## # MaritalStatus <chr>, MonthlyIncome <dbl>, MonthlyRate <dbl>,
## # NumCompaniesWorked <dbl>, Over18 <chr>, OverTime <chr>,
## # PercentSalaryHike <dbl>, PerformanceRating <dbl>,
## # RelationshipSatisfaction <dbl>, StandardHours <dbl>,
## # StockOptionLevel <dbl>, TotalWorkingYears <dbl>,
## # TrainingTimesLastYear <dbl>, WorkLifeBalance <dbl>, YearsAtCompany <dbl>,
## # YearsInCurrentRole <dbl>, YearsSinceLastPromotion <dbl>,
## # YearsWithCurrManager <dbl>
## Data Recipe
##
## Inputs:
##
## role #variables
## outcome 1
## predictor 34
##
## Operations:
##
## Zero variance filter on all_predictors()
Part 3
Employee Become More Valuable to the Organization then the Organisations Productivity will Increases
- Cost Calculation
- Direct Costs
- Average Separation $500
- Average Vacancy (Temporary plus Overtime) $10,000
- Average Acquisition (Advertisement, Interviews, Physicals, Bonuses, …) $4,900
- Average Placement (New Supplies, On-boarding, Training) $3,500
- 1 + 2 + 3 + 4 = $18,900
- Productivity Costs
- Annual Revenue (less COGS) Per Employee $250,000
- Workday Per Year 240
- Average Workdays Position Is Open 40
- Average On-boarding / Training Period 60
- Effectiveness During On-boarding / Training 50%
- Total (Calculation: 1 / 2 * (3 + 4 * 5)) = $72,917
- Salary plus Benefits
- Average Salary plus Benefits $80,000
- Workdays Per Year 240
- Average Workdays Position Is Open 40
- Total (Calculation: 1 / 2 * 3) $13,333
- Financial Cost of Turnover
- Estimated Turnover Cost Per Employee
- Direct Costs $18,900
- Lost Productivity $72,917
- Savings of Salary plus Benefits $13,333
- Total (Calculation: 1 + 2 - 3) $78,483
- Turnover Cost Per Employee $78 K
- If 200 employees leave the turnover cost is $15.7 M per year
- 10% reduction in turnover save the organization $1.6 M per year
## # A tibble: 1,470 x 19
## Age DailyRate DistanceFromHome EmployeeCount EmployeeNumber HourlyRate
## <dbl> <dbl> <dbl> <dbl> <dbl> <dbl>
## 1 41 1102 1 1 1 94
## 2 49 279 8 1 2 61
## 3 37 1373 2 1 4 92
## 4 33 1392 3 1 5 56
## 5 27 591 2 1 7 40
## 6 32 1005 2 1 8 79
## 7 59 1324 3 1 10 81
## 8 30 1358 24 1 11 67
## 9 38 216 23 1 12 44
## 10 36 1299 27 1 13 94
## # ... with 1,460 more rows, and 13 more variables: JobLevel <dbl>,
## # MonthlyIncome <dbl>, MonthlyRate <dbl>, NumCompaniesWorked <dbl>,
## # PercentSalaryHike <dbl>, StandardHours <dbl>, StockOptionLevel <dbl>,
## # TotalWorkingYears <dbl>, TrainingTimesLastYear <dbl>, YearsAtCompany <dbl>,
## # YearsInCurrentRole <dbl>, YearsSinceLastPromotion <dbl>,
## # YearsWithCurrManager <dbl>
## Data Recipe
##
## Inputs:
##
## role #variables
## outcome 1
## predictor 34
##
## Training data contained 1470 data points and no missing data.
##
## Operations:
##
## Zero variance filter removed EmployeeCount, Over18, StandardHours [trained]
## Yeo-Johnson transformation on 9 items [trained]
## Variable mutation for JobLevel, StockOptionLevel [trained]
## Centering for Age, DailyRate, ... [trained]
## Scaling for Age, DailyRate, ... [trained]
## Dummy variables from BusinessTravel, Department, Education, ... [trained]## # A tibble: 65 x 2
## feature Attrition_Yes
## <fct> <dbl>
## 1 PerformanceRating_Good NA
## 2 OverTime_Yes 0.246
## 3 JobRole_Sales.Representative 0.157
## 4 BusinessTravel_Travel_Frequently 0.115
## 5 JobRole_Laboratory.Technician 0.0983
## 6 Department_Sales 0.0809
## 7 DistanceFromHome 0.0782
## 8 EducationField_Technical.Degree 0.0694
## 9 EducationField_Marketing 0.0558
## 10 JobInvolvement_Medium 0.0447
## # ... with 55 more rows
