HR Analysis Part Two: Performance

Happy to share I was able to finish my second portfolio project and the second part of the case study I was working on. The goal of this project is to show my analytical thinking and problems solving skills. The tools that I have used are power BI and Excel.

Part One: Culture and Diversity

Dataset: https://www.kaggle.com/datasets/rhuebner/human-resources-data-set

Analysis Type: Descriptive

Business Task: Assess the performance of all employees hired between 2012 and 2018 in the company

Stakeholders: The HR Head and the Performance Team

Process:

A) Questions need to be answered:

• What is the overall performance for each department?
• What are the main factors that can affect the employee’s performance?
• What are the reasons behind the attrition rate?

B) Preparing the Data:

Tool: Excel

Original Data format: CSV

1-Copied the data to a new Excel file to prepare it for analysis.

2-Modified the name column to be formatted as: “first name last name”, instead of “last name, first name”.

3-Deleted the following columns as they were not needed for the analysis process:

MarriedID, maritalStatusID, GenderID, EmpStatusID, DeptID.

4-Calculated the age for each employee using their date of birth.

5-Divided the data into 3 sheets:

• Employees Data Sheet: Contains the employee's data related to his/her work such as position, salary, Performance, hire date etc.
• Personal Data Sheet: Has The employee’s personal data; for instance, name, age, marital status, etc.
• Recruitment Data Sheet: Shows which requirement channel was used to hire the employee.

6- Turned the three sheets into tables and created relations between them using the employee ID.

7- Saved the transformed data to be ready for analysis.

C) Analyzing Data:

Tool: Power BI

1- Loaded the tables into Power BI

2- Searched for trends to find key characteristics that indicates the employees' performance.

D) Sharing Insights:

• The company's overall performance meets the necessary requirements, but there is room for improvement.

• The satisfaction level in each department ranges from 3.6 to 4, indicating that employees are generally content. However, there is still work to be done to further increase satisfaction level.

• The company has experienced a significant issue with many employees leaving. Losing around 103 out of 311 employees over the course of six years is not good for a company in this size. On average, about 14 employees are leaving each year.

• The high attrition rate can be attributed to a range of factors, including employees pursuing other positions (often higher ones), dissatisfaction, seeking better compensation, and various other underlying reasons.

• An interesting insight that all the employees who left the company from the production team did so due to dissatisfaction.

• It can be inferred that the company offers competitive salaries to its employees, despite it being the third most common reason for leaving. The salaries provided are either equal to or above the average salary range in each department, as per the average salaries in the US in 2018.E) Recommendations:

• Based on the data, the company's performance can be described as average, but not exceptional, as it only meets the required performance level with minimal margin. In order to progress and improve, the company should take proactive measures and implement necessary actions.

• The high attrition rate is not a good sign; HR needs too address several questions such as:

• Why did all the employees who left the company due to dissatisfaction exclusively come from the production department?

• Why almost 29% of the teams are not performing well? And why half of the other 71% barely meets the required level of performance?

• What strategies can be employed to boost employee satisfaction?