To improve HR Management and reduce attrition rates.
Analytics can improve Human Resources (HR) management for companies with large number of employees. By accurately predicting attrition risks of current employees, companies can take real steps to keep their talent happy, engaged and less susceptible to competitive overtures.
A Technology Giant was facing the same issue in managing its talent and wanted to reduce the attrition rates. While qualitative feedback and a risk indication of attrition is usually collected, it is a very individual-driven rating without a repeatable, algorithmic basis.
In a financial year, 17%-20% of the key employees left the company leading to delay in project completion and huge loss to the company. The cost of hiring the employee does not get recovered impacting the bottom line of the organization. Tacit knowledge of the firm gets disseminated to the competition. Much more impactful when attrition is reported higher in the value chain.
We had performed a data quality assessment by collating data from varied sources like demographics, performance, compensation, risk rating, exit interviews, post exit surveys etc. Advanced quantitative approaches like Principal Component Analysis & Logistic regression was used to solve the problem.
The model helped reduce the attrition rate and the prediction of an employee leaving the firm became much easier. The HR team started to engage with employees by various means to apprehend the possibility of employee leaving the firm leading to efficient talent management.
We had also successfully identified all key factors affecting attrition and spotted key employee groups and employees at the verge of leaving to take suitable steps accordingly. With our Attrition Risk Dashboard, client had the opportunity to closely monitor the attrition rate and factors affecting them.