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🧾 Executive summary
This study aims to help the HR team understand the reasons behind attrition and develop strategies to retain more employees of Atlas Labs (a fictitious software company).
First of all, there is a remarkable improvement in the attrition ratio over the years. In 2013, when the company had only 151 total employees, the attrition rate was 86%. By 2022, the number of employees increased to more than 1,000 and the attrition ratio decreased to 21% thanks to the persistent and dedicated work of the HR team.
The analysis of the dataset reveals that the
• years at the company,
• age
• salary and stock options
• overtime,
• role,
• marital status,
• education grade and
• travel requirements
are the key factors impacting attrition?
There is a notable trend among the single young workforce, who demonstrate high job satisfaction levels despite doing overtime and exceeding expectations going over and beyond still choose to leave the company. This is especially true for those with lower salaries, mainly below $40,000, and limited stock levels.
- Tenure:
The 2 initial years is a crucial period. The majority of the attrition happened during this timeframe. Dissatisfaction is also the highest in these first two years. Longer tenure with the company shows a decrease in attrition rates after the two-year mark.
Focusing on retaining and integrating the new hire is key. Putting more emphasis on effective onboarding, continuous engagement practices, manager-employee relationship improvement, proper communication, comprehensive support, and resource could help mitigate attrition risk.
- Age Groups:
Employees in their late twenties (28-29) have the highest attrition rate, followed by those in their early twenties (20-21). To keep young talented employees, it's important to outline clear career paths, provide growth opportunities, and create a supportive work environment.
- Salary:
The attrition ratio decreases as salary increases. While attrition is 29% for salaries under 100,000.
Regularly reviewing and adjusting wage scales and providing competitive salaries, compensation packages, annual loyalty bonuses, and stock can help.
- Overtime:
Employees who work overtime have a higher attrition rate (31%) compared to those who do not (10%).
The 58% of employees who quit were working overtime.
Among sales representatives, 67% of those whom attrition did overtime, while in the case of recruiters, all those who resigned in the first two years worked extra hours.
Strategies to manage workloads, redistributing tasks, hiring additional staff, implementing automation to reduce excessive work hours, and recognizing the efforts of employees who contribute additional hours could reduce attrition.
- Job Roles:
The number of leavers is the highest in the Data Scientist, Sales Executive, and Software Engineer roles, while the Sales representatives, Recruiters, and Data Scientists exhibit the highest attrition rate in that order. Additionally, positions with the highest attrition rate also have the lowest average salary and salary range compared to other roles in the company.
- Marital Status:
Single employees have the highest attrition rates, while married and divorced individuals show higher resilience. Becoming a family-friendly company and hiring more married would be beneficial.
- Education and Qualifications:
It depends on the positions, which degree of qualification has a higher attrition ratio. Overall Attrition rates decrease as education levels increase. Employees with no formal qualifications and bachelor's degrees show higher attrition rates. For recruiters, those with a master's degree leave most often, while in the case of machine learning engineers, those with a doctorate show a higher attrition ratio.
- Travel:
Travel requirements emerge as an influential factor contributing to attrition rates. A large proportion of intensive traveler employees, work overtime, and may face work-life balance challenges
- Job satisfaction:
Those who attrition are more satisfied with the job than those who choose to stay. Moreover, those who engaged in excessive work hours, are more satisfied with their work than all those who do not do overtime. Those who work extra hours and quit are the most satisfied with their jobs.
It suggests that job satisfaction alone is not enough to retain employees. Despite being satisfied with their jobs, employees working overtime may struggle with work-life balance, leading to burnout and a decision to leave.
Engage with employees working overtime to understand their career aspirations, recognize and reward performance, and support work-life balance by promoting flexible work arrangements, enabling remote work, and employee assistance programs that could help retain employees.
By implementing these recommendations, Atlas Lab could reduce attrition rates. These strategies should be tailored to each job, and age group, and identify trends to ensure maximum effectiveness.
It is important to conduct regular employee surveys, review historical data, and monitor the implementation of these strategies to measure their impact and continually refine conservation efforts.
📷 Tableau screenshot
🌐 Link to your Tableau Public dashboard
Title: Attrition Matters Author: Zita Demeter Link: https://public.tableau.com/app/profile/zita.demeter/viz/AttritionMatters/Story1?publish=yes