Employee Attrition Analysis

GitHub Repo

Project Objective:

In this project I navigate through the core of HR Analytics, the art of deriving actionable insights from employee attrition data using Microsoft Power BI.

• Leveraged Power Query to perform Data Cleaning and Data Transformation on employee attrition data for 1470 employees.
• The dataset spanned across 35 individual employee data parameters such as Department, Gender, Satisfaction levels, Distance from Home, Salary compensation details, Job Roles, Stock Option Level, Total Working Years etc.
• Configured 16 Quantitative Attrition KPIs including Gender-specific Attrition Count (Male: 150, Female: 87), Attrition Rate (16.1 %), Median Monthly Income ($ 6503) and Average Employee Tenure (7 yrs) etc. using DAX Measures.
• Designed a 5 View Report for identification of attrition patterns across parameters like Employee Demographics, Turnover and Wellbeing.
• Identified notable attrition inducing trends based on Average Monthly Income (AMI), wherein Managerial employees with highest AMI of 17.4K $ have very low attrition rate of 5.5 % while Sales Representative with the lowest AMI of 2.6K $ and have the highest Attrition rate of 39.8 %.
• Presented actionable Insights and Recommendations that breathe life into employee retention strategies.

Analysis Insights:

Employee Demographic Patterns:

• The age category of Adults (26 – 44 yrs) is home to the highest workforce, with 876 Active and 157 Attrited employees. However the age category of Young Adults (18 - 25 yrs) despite having 2nd lowest Active employee count are affected with the highest Attrition rate of upto 32.5 % in Males and upto 41.9% in Females. Perhaps it’s a testament to the wisdom and stability that comes with age.
• Male employees dominate our workforce, constituting 882 out of 1470 individuals. However, Female employees display a lower Attrition rate at 14.8 %, contrasting to higher Male Attrition rate of 17 %.
• Attrition rate seems to be higher among employees with Single Marital status of around 23 - 26 % regardless of the employee gender.
• While Bachelor employees boast the highest Active employees they are also affected with the 2nd highest Attrition rate of 17.3 % trailing just behind High School employees (18.2 %), considering the wide range of opportunities available for them in the job market, which narrows down as employees complete their Doctorate (10.4 %).
• HR (25.9 %), Technical Degree (24.2 %) & Marketing (22 %) field employees have Attrited highest in the company.
• Attrition increases the longer employees have to travel to office with maximum Attrition rate of 42.9 % seen around the 24 Km mark indicating that the majority of employees prefer a close commute, reflecting an aspect of convenience and local integration.

Employee Turnover Patterns:

• There seems to be a direct correlation between Average Monthly Income (AMI) and Attrition. Managers earn the highest AMI of 17.4K $ and have one of the lowest Attrition rates of 5.5 % while Sales Representative earn the lowest AMI of 2.6K $ and have the highest Attrition rate of 39.8 %. The Attrition rate goes up with decreasing AMI hinting at the interplay between financial satisfaction and employee retention.
• Attrition in general goes down as employees scale the corporate ladder as seen with Entry level & Executive employees showing 26.3 % & 4.7 % Attrition rate.
• As employees spend more time in the company, Attrition rate decreases broadly from 36.4 % at 0 yrs in the company to 6.7 % at 22 yrs in the company post which it displays a contrasting rising trend till 40 yrs in the company when it reaches 100 % mark.

Employee Wellbeing Patterns:

• Employee Satisfaction trends contradict the Attrition trend as expected. As Employee Satisfaction, Relationship Satisfaction & Job Satisfaction metrics increase, employee attrition decreases from around 23 % to 13.2 %.
• Similar to Employee Satisfaction as Employee Job Involvement increases, the Attrition rate decrease from 33.7 % to just 9 %.
• Attrition goes up from 8 % to 24.9 % as employees need to almost Never Travel to Frequently Travel for business.
• Work-Life Balance metric provides a bell curve trend of Attrition as both Poor & Very Good WLB leads to 24.4 % attrition while Fair & Good WLB leads to 15.5 % attrition on average.
• Increasing Salary Hike % leads to decreasing Attrition among employees across all job levels.

Data-driven Recommendations:

Employee Retention and Job Satisfaction:

• Conduct comprehensive surveys and engage in direct dialogues with employees to understand the underlying reasons for high attrition (Avg 23 %) due to Job/Environment/Relationship dissatisfaction.
• Implement measures to improve Work-Life Balance, especially for long-standing employees, to reduce Attrition rates upto 14.2 %.
• Recognizing the importance of proximity to work in their daily routines, allow Working from Home (WFH) for employees living with distance of more than 11 Km to reduce travel frequency and drop Attrition rates from 24.9 % to just 8 %.
• Ensure Salary Hike % is at least 15 % or higher to drastically cut down the attrited employees by almost 50%.

Training and Development:

• Offer training opportunities for Entry-level and Junior employees to bridge any skills gaps, particularly in emerging technologies like Python to complement existing skills in SQL, Excel, Power BI so that they can climb the ladder to be Executive/Sr. Executives dropping the attrition by upto 22 %.

Financial Incentive Programs:

• Review the Salary compensation packages to ensure they are competitive and aligned with industry standards, particularly for job roles with high attrition rates like Sales Representatives (39.8 %), Sales Executives (17.5 %), Lab Techs (23.9 %) & Human Resources (32.1 %) across the Sales, HR and R&D departments.
• Evaluate the effectiveness of Low & Moderate value Stock Options and other incentive programs to gauge their impact on employee engagement.

Gender Diversity and Inclusion:

• Develop initiatives to promote gender diversity at all organizational levels and address any disparities in attrition rates between Male (17 %) and Female (14.8 %) employees.
• Establish mentorship programs and support networks to encourage the career growth and retention of Male employees within the organization.

Tools used:

• Microsoft Power BI Desktop: for Data Cleaning, Transformation, Data Analysis, Visualization & Report Design
• Microsoft Power BI Service: for Publishing Report
• GitHub: for Project Documentation

Skills: Microsoft Power BI, Microsoft Power Query, Dashboards, Key Performance Indicators, DAX