Its a new day, a client walks in and says he needs your help.
Our client is ABC a leading firm and is doing well in the sector. It is recently facing a steep increase in its employee attrition . Employee attrition has gone up from 14% to 25% in the last 1 year . We are asked to prepare a strategy to immediately tackle this issue such that the firm’s business is not hampered and also to propose an efficient employee satisfaction program for long run. Currently, no such program is in place . Further salary hikes are not an option.
data is here
Well this is a nice business problem, so lets do some more research on it – >
The attrition problem is not only unique to ABC but to other IT companies such as XYZ, India’s second largest IT services company, that is also battling high attrition, with a peak attrition of 20.4 % in the October-December quarter of FY15.
Now that we know the market situation what can we do ?
From this decision tree it should be clear that we will create an early warning system to help the company identify those employees which are more probable to leave the company.
In the following posts we will go through
- Data cleansing
- Classification models
But why is a company so affected by employee attrition
- Cost of training a new employee
- cost of acquiring a new employee
- But most importantly an employee is a asset that adds value to a company, and when an employee leaves a value percentage of the company is diminished with it, at the end a company spends an enormous sum trying to replace this employee and recreating the value it lost.