HR Employee Attrition Analysis and Retention Strategy Development: Analysts League Challenge 2

The “HR Employee Attrition Analysis and Retention Strategy Development” project aims to provide a comprehensive analysis of factors contributing to employee turnover and job satisfaction within the company. The insights derived from this analysis will facilitate the formulation of effective retention strategies to improve employee satisfaction and reduce attrition rates.

Through data cleaning, exploratory data analysis, and statistical analysis, the report aims to uncover trends and correlations that can inform strategic decisions aimed at enhancing employee satisfaction and reducing turnover rates.

Dataset Description

The dataset consists of detailed information on 1,470 employees, including 237 who have left the company. Key features analyzed include:

• Age
• Daily Rate
• Distance from Home
• Education
• Employee Count
• Employee Number
• Environment Satisfaction
• Hourly Rate
• Job Involvement
• Job Level
• Job Role
• Job Satisfaction
• Marital Status
• Monthly Income
• Overtime
• Performance Rating
• Relationship Satisfaction
• Stock Option Level
• Total Working Years
• Training Times Last Year
• Work-Life Balance
• Years at Company
• Years in Current Role
• Years Since Last Promotion
• Years with Current Manager

Tools and Methodology

The analysis was conducted using Python, leveraging libraries such as Pandas for data manipulation and Matplotlib and Seaborn for data visualization analysis. The process included data cleaning, exploratory data analysis, and statistical analysis to identify trends and correlations.

Data source and Questions

Analysis and Findings

1. What factors are most common among employees who leave, and how can we address these?

Findings:

• Age: Younger employees tend to have higher attrition rates.
• Distance from Home: Higher attrition is seen among employees living farther from the office.
• Marital Status: Single employees leave more often than married or divorced employees.
• Overtime: Employees working overtime are more likely to leave.
• Stock Options: Employees without stock options tend to leave more frequently.

Actions:

• Implement remote work options or relocation assistance for employees living far from the office.
• Offer flexible schedules and reduce mandatory overtime.
• Provide stock options more broadly across the workforce.
• Develop support and engagement programs tailored to younger and single employees.

2. How does job satisfaction differ between departments, and what can we do to improve it?

Findings:

• Sales: Average job satisfaction is 2.75.
• R&D: Average job satisfaction is 2.73.
• Human Resources: Average job satisfaction is 2.60.

Actions:

• Conduct detailed surveys within the Human Resources department to identify specific issues.
• Implement targeted initiatives to boost morale and satisfaction within departments with lower job satisfaction.

3. Which employee groups (by age, gender, marital status) are leaving most often, and what can we do to retain them?

Findings:

• Age Group: Employees aged 18–25 have the highest turnover rates.
• Gender: Males have a slightly higher turnover rate than females.
• Marital Status: Single employees leave more frequently.

Actions:

• Provide career development opportunities and mentorship for younger employees.
• Ensure a supportive and inclusive work environment for all genders.
• Create engagement programs targeted at single employees.

4. How does frequent business travel impact job satisfaction, and what changes could help?

Findings:

• Job satisfaction remains relatively constant regardless of the frequency of business travel.

Actions:

• Continue offering travel-related benefits and support to employees who travel frequently to maintain their satisfaction levels.

5. Does living farther from the office affect employee satisfaction and turnover, and should we consider remote work or relocation help?

Findings:

• No strong correlation between distance from home and job satisfaction.
• Higher turnover rates are observed for employees living farther away.

Actions:

• Consider implementing remote work options or providing relocation assistance for employees who live far from the office.

6. How does working overtime affect employee happiness and turnover, and how can we balance workloads better?

Findings:

• Employees working overtime report slightly higher job satisfaction.
• Turnover rates are significantly higher among employees working overtime.

Actions:

• Balance workloads to reduce the need for overtime.
• Offer compensatory time off and other benefits to employees who work overtime.

7. What is the relationship between how long employees stay and their job involvement, and how can we keep them engaged longer?

Findings:

• Higher job involvement is correlated with longer tenure.

Actions:

• Encourage career development and provide clear advancement paths to keep employees engaged.
• Recognize and reward high job involvement to foster long-term engagement.

8. How does the amount of training relate to job performance and satisfaction, and can we improve our training programs?

Findings:

• No strong correlation between training frequency and job performance.
• Slightly higher job satisfaction with increased training frequency.

Actions:

• Focus on the quality and relevance of training programs.
• Customize training to meet the specific needs of different employee groups.

9. How do relationships with managers affect job satisfaction, and what can we do to improve this?

Findings:

• Higher relationship satisfaction with managers correlates with higher job satisfaction.

Actions:

• Provide leadership training to managers to improve their relationships with employees.
• Encourage regular feedback and open communication between employees and managers.

10. How do pay levels affect job satisfaction and turnover, and should we adjust our compensation plans?

Findings:

• Higher income levels correlate with higher job satisfaction and lower turnover rates.

Actions:

• Ensure competitive pay and regularly review compensation plans.
• Offer additional benefits and incentives to retain employees.

11. How does work-life balance affect job satisfaction in different roles, and what policies could support better balance?

Findings:

• Better work-life balance is associated with higher job satisfaction.

Actions:

• Promote flexible working hours and remote work options.
• Foster a workplace culture that values work-life balance.

12. How do stock options and other benefits affect employee retention, and should we update our benefits package?

Findings:

• Employees with stock options have lower turnover rates.

Actions:

• Expand stock options to more employees.
• Regularly review and update the benefits package to stay competitive.

13. How does the work environment impact employee morale and turnover, and what can we do to improve the workplace?

Findings:

• No significant correlation found between work environment satisfaction and turnover.

Actions:

• Conduct detailed surveys to understand specific work environment issues.
• Enhance workplace amenities and ensure a positive work environment.

14. How do education levels and fields relate to job performance and satisfaction, and how can we use this in hiring and development?

Findings:

• No significant correlation between education levels and job performance or satisfaction.

Actions:

• Focus on skills and experience rather than solely on educational qualifications during hiring.
• Provide continuous development opportunities for all employees.

15. What makes top performers happy in their jobs, and how can we apply these factors to all employees?

Findings:

• Top performers report high satisfaction with work-life balance, environment, job involvement, and relationships with managers.

Actions:

• Apply these positive factors across the entire workforce.
• Recognize and reward top performers to maintain their satisfaction and engagement.

This comprehensive analysis has identified several key factors affecting employee turnover and job satisfaction. By addressing these factors through targeted actions such as offering remote work options, balancing workloads, enhancing training programs, and providing competitive compensation and benefits, the company can improve employee retention and satisfaction. Continuous monitoring and regular feedback from employees will be essential in ensuring the effectiveness of these measures and making necessary adjustments.