HR Analytics: Predicting Employee Churn in R

This chapter begins with a general introduction to employee churn/turnover and reasons for turnover as shared by employees. You will learn how to calculate turnover rate and explore turnover rate across different dimensions. You will also identify talent segments for your analysis and bring together relevant data from multiple HR data sources to derive more useful insights.

In this chapter, you will create new variables from existing data to explain employee turnover. You will analyze compensation data and create compa-ratio to measure pay equity of all employees. To identify the most important variables influencing turnover, you will use the concept of Information Value (IV).

In this chapter, you will build a logistic regression model to predict turnover by taking into account multicollinearity among variables.

In this chapter, you will calculate the accuracy of your model and categorize employees into specific risk buckets. You will then formulate an intervention strategy and calculate the ROI for this strategy.