Summary
This report highlights important trends in employee attrition and its connection to job roles, compensation, travel frequency, and distance to work. Addressing these insights can help improve employee retention strategies, especially in high-turnover roles like Sales and Human Resources.
Introduction
Employee attrition significantly affects organizational performance, workforce stability, and financial results. This report offers a detailed analysis of key performance indicators (KPIs) related to employee retention, attrition, and compensation trends within the organization. By examining factors like termination rates across job roles, the effect of travel frequency on employee satisfaction, and the link between income levels and turnover, this report seeks to provide insights that can guide strategic workforce decisions.
Data Overview
To improve my workflow, it's important to first create a backup copy of the dataset for future reference. Additionally, organizing the dataset into a table format will greatly enhance clarity and efficiency in my work. The dataset consists of about 42 columns, including conditional columns created with Power Query, and contains approximately 1,470 rows. After cleaning the dataset using Power Query, I loaded it back into Excel to begin my analysis using Pivot TableWhat is the termination level of employees based on their job satisfaction levels?
Exploratory Data Analysis (EDA)
The task involves creating a dashboard and answering some business questions.
What is the total number of employees since inception? Answering this particular question involves creating a DAX formula =COUNTROWS(Table1__2). The company has employed a total of 1,470 individuals since its inception. This figure represents the cumulative number of employees who have worked at the organization over time, including both past and present staff.
What is the total number of current employees? The company currently has 1,233 active employees. This number represents the total workforce that is presently employed and working within the organization. This was calculated using Dax formula =CALCULATE(COUNTROWS(Table1__2),Table1__2[Attrition]="No")
What is the total number of our terminated employees? The company has a total of 237 terminated employees. This represents the number of individuals who were previously employed but have since left the organization due to resignation, retirement, or other reasons.
What is our employee termination rate? The company's employee termination rate is 16%, meaning that 16% of all employees hired since inception (1,470) have left the organization. It indicates the proportion of employees who have exited the company over time. formula: =DIVIDE(CALCULATE(COUNTROWS(Table1__2),Table1__2[Attrition]="Yes"),COUNTROWS(Table1__2))
What is the total income of employees who have not left the company? The total income of employees who are still with the company is 8,424,768.00. This represents the cumulative payroll or salary payments allocated to the 1,233 active employees who have not left the organization.
formula: =CALCULATE(SUM([MonthlyIncome]),Table1__2[Attrition]="No")
What is the average monthly salary of an employee? The average monthly salary of an employee is 6,502.93. This amount reflects the typical monthly earnings for each employee.
Which department has the highest rate of employee attrition? The Sales department has the highest rate of employee attrition, with a 21% termination rate. This means that 21% of the employees in Sales have left the company, which is higher than the rates in the Human Resources (19%) and Research & Development (14%) departments.
Do employees who travel frequently have higher attrition compared to those who travel rarely or never? Yes, employees who travel frequently have a higher attrition rate compared to those who travel rarely or never. They experience a significantly higher rate of leaving the company than those who travel less often or not at all.
How does the frequency of travel impact overall employee satisfaction? The frequency of travel seems to have little effect on overall employee satisfaction, as the average job satisfaction scores are quite similar across all categories.
Is there a significant difference in monthly income between employees who stay and those who leave? Yes, there is a significant difference in monthly income between employees who stay and those who leave.
Average salary of terminated employees: 4,787.09
Average salary of active employees: 6,832.74
On average, employees who stay with the company earn a higher monthly income than those who leave, with a difference of about $2,045.65.
How does monthly income influence attrition rates in various job roles? The data shows that monthly income noticeably affects attrition rates across different job roles. Generally, roles with lower pay tend to have higher termination rates, while roles with higher pay have lower attrition rates.
The Sales Rep role stands out with the highest termination rate, which is coupled with a lower average salary. In contrast, roles with higher salaries, like Manager and Research Director, exhibit significantly lower attrition rates.
Is there a correlation between the distance from home and employee attrition? There seems to be a weak positive correlation between the distance from home and employee attrition, but it is not very strong. The correlation coefficient of 0.32 indicates a modest relationship between distance and attrition. The variation in termination rates suggests that distance alone does not determine attrition.
Are there notable differences in attrition rates between male and female employees? Yes, there is a slight difference in attrition rates between male and female employees.
Female employees: 15% termination rate (87 terminated out of 501 active employees)
Male employees: 17% termination rate (150 terminated out of 732 active employees)
This suggests that male employees might be slightly more likely to leave the company than female employees, although the difference is not significant.
What is the level of our current/active employee education? The education levels of the company's current employees are as follows:
BSc (Bachelor's degree): 473 employees
MSc (Master's degree): 340 employees
College (College diploma): 238 employees
Below College (Less than college education): 139 employees
Doctorate: 43 employees
This shows a diverse educational background among active employees, with most holding a BSc & MSc degree, and a smaller number having a Doctorate.
Which education fields have a higher attrition rate? The education fields with higher attrition rates are:
Human Resources: 26% termination rate
Technical Degree: 24% termination rate
Marketing: 22% termination rate
These fields show significantly higher attrition rates compared to others. In contrast, the Life Sciences, Medical, and Other fields have lower termination rates, with Medical being the lowest at 14%. This indicates that employees with education in Human Resources, Technical Degrees, and Marketing are more likely to leave the company than those with degrees in Life Sciences, medicine, or other fields.
What is the job satisfaction of our current employees? As shown in the image below, most employees have high or very high job satisfaction, with 776 employees in these categories. This is more than the 457 employees who report low or medium satisfaction levels. Overall, the company appears to have a generally positive job satisfaction trend among its current workforce.
What is the termination level of employees based on their job satisfaction levels? Interestingly, employees with high satisfaction have the highest termination rate, with 73 terminations, followed by those with low satisfaction at 66. This suggests that both dissatisfaction and very high satisfaction do not necessarily mean employees will stay at the company. However, employees with medium satisfaction have the lowest termination rate at 46, which might indicate that those who feel more neutral are less likely to leave.
What is the current work-life balance of an active employee? The majority of employees report having a "better" work-life balance, with 1,178 employees feeling that their work-life balance is at least good. A smaller number, 126, feel they have the best work-life balance, while 55 employees consider it to be balanced. This suggests that most employees view their work-life balance positively.
Which age group has the highest attrition rate? The Youth group, with the highest attrition rate, may indicate a higher turnover among younger employees, while older age groups (middle-aged and senior citizens) have significantly lower attrition rates.
Are employees with more years of experience more likely to stay with the company? Yes, employees with more years of experience are generally more likely to stay with the company. Employees at higher experience levels, such as Expert and Guru, show significantly lower termination rates, indicating that more experienced employees tend to stay longer with the company compared to those at entry-level positions.
How does the level of stock options impact employee retention? The level of stock options appears to have an impact on employee retention, with employees receiving more stock options having lower attrition rates. Here's a breakdown of termination rates based on the level of stock options:
0 stock options: 24% termination rate (highest attrition)
3 stock options: 18% termination rate
1 stock option: 9% termination rate
2 stock options: 8% termination rate (lowest attrition)
Employees with more stock options tend to have lower termination rates, suggesting that offering stock options could help improve employee retention. Those with 0 stock options have the highest attrition rate, indicating that a lack of stock options may contribute to higher turnover.
The Dashboard
Conclusion & Findings
The analysis reveals that the company has a 16% attrition rate, with higher turnover in departments like Sales and HR. Compensation is a key factor in retention, as employees with higher salaries tend to stay longer. Frequent travel and distance from work have minimal impact on attrition, while employee satisfaction, age, experience, and career progression also play a role. Offering stock options and better development opportunities for younger staff could improve retention.
Recommendation
To reduce turnover, especially in Sales and HR, increase compensation and conduct a salary review. Improve work-life balance through flexible schedules, enhance stock options, and implement targeted retention programs. Focus on career development and mentorship for younger employees to promote long-term growth and retention.
Thanks for reading😊