Employee Churn Analysis

Employee turnover is a major challenge for companies today, especially when

the labor market is competitive and certain skills are in high demand.
 Issue Behind the Door

• When an employee leaves, not only is the productivity of that person lost, but the productivity of many others is
impacted.

• Finding replacements can take months of time and effort on the part of hiring managers and recruiting staff, who are
then forced to take time away from the work they could be doing.

• When a replacement is finally found, it takes weeks to months for that employee to be completely on-boarded and
working at full capacity.

• By some estimates, it costs about 20% of an employee’s salary to replace a position, and costs can be much higher —
over 200% — for highly skilled and educated positions like many in demand today.
 Future ahead …. Machine Learning

• Retention of valued employees makes good business sense.

• Traditional approaches such as employee engagement surveys and proper training for managers are important
components of a good workforce planning strategy.

• Now that ‘big data’ has arrived, the insights it provides are becoming an increasingly valuable part of that strategy.

• Simple machine learning approach can be used, to harnessing workforce data to understand a company’s employee
turnover, and predict future employee turnover before it happens so that actions can be taken now, before it’s too late.
 Goals:

1. Create model to accurately predict employees who leave

2. Identify key factors related to employee churn

IBM dataset is used to predict the attrition as well as study the underlying factors & interpret them through
visualizations. The three basic classification algorithms - Logistic Regression, Decision Tree & Random Forest have
been used to make predictions.
EDA Process
Employee Churn Analysis
Starts
The Above selected attributes …. Emp NO, Standard Hours, Over18, Employee count can be deleted.
Visualization ---
Better way to understand data
Factor Variables
Decision Tree Employee Churn Analysis
The area under the curve for the Logistic regression model is 0.85 and is highest. Decision tree gives an AUC of 0.666
only. 
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