Predicting Employee Attrition Using XGBoost Machine Learning
Predicting Employee Attrition Using XGBoost Machine Learning
2018 International Conference on System Modeling & Advancement in Research Trends, 23rd–24th November, 2018
College of Computing Sciences & Information Technology, Teerthanker Mahaveer University, Moradabad, India
Abstract—Considering the global competitive scenario, there or any other natural or normal means [1]. There was a time,
is ocean of opportunities for skilled and talented persons in when an employee joins the company, he/she has a thorough
the world, and given a good chance, employees part from one commitment towards workplace and doesn’t leave the job
organization to another. Employee turnover is regarded as for the whole life. But now the face of organizations has
the key issue for all organizations these days, because of its
changed, especially the face of Information technology. The
adverse effects on workplace productivity, and accomplishing
organizational objectives on time. To overcome this problem, situation of organizations and work culture is completely
organizations are now taking support via machine learning different as if off now. Employees of these times are highly
techniques to predict the employee turnover. With high flexible as compared to old aged employees [21,22].
precision in prediction, organizations can take necessary Employee attrition is also defined as the wastage
actions at due course of time for retention or succession rate or total turnover like situation of demand and supply
of employees. Most of the data comes from basic HR based mechanism. Employee attrition creates chronic problems
database systems, which are not highly efficient in prediction in the organization, and it is realized by organizations in
and modeling and these models are not very accurate in data recent times. It also impacts the competitive strength of
models and cannot assist the organizations to take successful
the company due to the ceaseless demand of proficient
decisions. The primary objective of this research paper is
to predict employee attrition i.e. whether the employee is employees and globalization. With the emergence of
planning to leave or continue to work within the organization. next-generation IT companies, new start-up’s, many of
In this paper, we propose a novel model for predicting the employees have shown attrition because of acquiring
Employee Attrition using Machine Learning based approach new learning skills. In the eyes of management, attrition
i.e. XGBoost which is highly robust. In order to validate the is highly expensive and challenging problem to determine
accuracy of the system proposed for Employee Attrition, the concrete solutions. Today’s organizations are refining and
data set is acquired via online database and fetched to the even re-defining various HR policies and practices, but to
system and highly stunning and precision results are shown by some extent, they are successful, but still the rate of attrition
the system with regard to Employee turnover behavior.
is moving up in every quarter or so. [2]
Keywords—Employee Attrition, Turnover, XGBoost, Machine
Learning, Supervised Learning, Supervised Classification A. Attrition-Definition
According to Barron Business Dictionary, the word
I. Introduction “Attrition” is defined as “Normal and Uncontrollable
In recent times, all types of organizations are becoming reduction of a work force because of retirement, death,
very curious and cautious with regard to their market sickness and relocation” [9].
reputation and to gain a competitive edge over others to According to Longman Dictionary of Contemporary
gain huge profits and attain all types of organizational English, Attrition happens “when people leave a company
objectives. Organizations focus on varied HR issues or course of study and are not replaced [10].
and practices. Organizations consider employees as the According to American Heritage Dictionary of English
central resource for everything, so employees must be Language, “Attrition is a gradual, natural reduction
handled with utmost care. It is the primary responsibility in membership or personnel, as through retirement,
of every organization to solve all sorts of employee issues resignation or death” [11].
and provide appropriate solutions and maintain cordial According to Investopedia, “Attrition in business can
relations to boost strong work environment. The serious mean the reduction in staff and employees in a company
concern which affects the organization and even hampers through normal means such as retirement and resignation,
productivity is Attrition. Attrition is regarded as a reduction the loss of customer or clients to old age or to growing out
in the employee’s number via resignation, death, retirement of a company’s target demographic [12].
Copyright © IEEE–2018 978-1-5386-6369-1 113
2018 International Conference on System Modeling & Advancement in Research Trends, 23rd–24th November, 2018
College of Computing Sciences & Information Technology, Teerthanker Mahaveer University, Moradabad, India
organization and become highly responsible for strong Pay and Singh Monetary strategies 2013
performances from the employees. Workforce optimization Compensation such as performance
can also lead to the organization’s success by getting work linked incentives,
done and also establishing accountability. Good working rewards, increment
conditions are also responsible for lower employee attrition in salary helps retain
rates. The study concluded that empowerment of employees employees
would help with the company’s success in retaining its
employees [30]. Ahsana Compensation, 2013
O’Halloran et al. [8] explored how various performance (2013) career opportunity,
related pay (PRP) schemes impact employee turnover. The supervisor support
study tested whether a profit sharing has an impact on effects retention
turnover as compared to other forms of PRP. The study
revealed that there exists a negative relationship between Organizational Mignonac Perceptions of 2013
aggregate measures of PRP and turnover. Table 1 gives Support and disinterested support
Comparison of different Models based on employee Work life decrease employee
balance voluntary turnover.
attrition.
Table 1: Comparison of Different Models Based on
Job Content Bigdeli Internal and external 2013
Employee Attrition
environmental factors,
Factors Authors Research Outcome Year and motivational
factors influence the
employee’s retention.
Flexible work Goud Trust, flexible 2014
arrangements arrangements
employee engagement,
retention leads to
retention & job
engagement
III. Research Methodology
In this research paper, a novel model is proposed
Reward and L.T. Silbert Tangible Rewards 2005 to analyze the employee attrition. All the variables are
Recognition and its outcomes analyzed via some plots and inferences are drawn via
on Organizational exploratory analysis. After exploration some features are
Support. built based on the variables and the final decision is made
to include/exclude some variables.
Promotion and L. Eyster, Strategies to employ & 2008 The Research Design [9] [10] undertaken for the
opportunity for R Johnson retention of previous study was predictive as well as descriptive. The typical
Growth and employees. data science pipeline, called “OSEMN” [11] is followed as
E. Toder demonstrated in figure 1
1. O: Obtaining the data is the first step in solving
Training and Beynon et Training provides 2014 the problem.
development al. employees loyalty and 2. S: Scrubbing or cleaning the data is the next
retention approach. It includes data imputation of invalid or
missing data and fixing column names.
Leadership Chung- Applying Structural 2009 3. E: Exploring the data will be the next right after
Hsiung Equation Model and allow further insight of what our dataset
Fang, to leadership contains. It also looks for any sort of weird or non-
SueTing style, satisfaction, associated data.
Chang, Organization 4. M: Modelling the data provides predictive power
Guan-Li commitment model on whether an employee will leave or not.
Chen 5. I: Interpreting the data to draw necessary
conclusions.
V. Conclusion
In this paper, a machine learning approach for predicting
employee attrition is presented in this paper. The most
significant drawback of existing organization’s data models
and database is that, they contain lots of redundant data and
predicting something with precision is quite challenging.
We implemented a precision model for predicting employee
attrition using XGBoost based machine learning technique.
XGBoost is regarded as a superior algorithm in terms of
efficient memory utilization, high accuracy and low running
times. It is simply highly robust and scalable technique to
handle all sorts of noise from huge data sets and convert
the data into a ready acceptable form for precision results.
The model presented in this paper has very low rate less
than 30% and the accuracy touches almost to 90%. Because
of these reasons, XGBoost technique is recommended on
top priority manner for employee turnover prediction to
successfully enable the organization to take preventive
action in due course of time.
A. Future Scope
In the near future, we like to implement the proposed
model in real-world organizations to enable organizations
to learn the employee turnover reasons. The research
After the implementation of the model, we concluded would go in the direction to make this model a “Predictive
that a total of 14 factors influence the attrition rate more Mode” and solve various issues, i.e. Advanced ones not
than any other factors. After using the baseline decision tree predicting- “Who is going to Leave?” but also “Why the
models that had maximum accuracy up to 83 percent, we Employees are doing turnover?”. The model will become
decided to use a more advanced approach. For the same, we more accurate, scalable and ready to implement as such in
considered glmboost [18] and XGBoost [19] [20] techniques top IT organizations HR departments.
for our model. Our model, based on XGBoost worked the References
best for us with a decent specificity rate (> 50%) and a very [1] Nappinnai, M.V., & Premavathy, N. (2013). Employee attrition and
low error rate (< 30 %). It had an improved accuracy over retention in a global competitive scenario. International Journal of
Research in Business Management (IMPACT: IJRBM), 1(6), 11–14.
the baseline model which increased up to 89% as shown [2] Adhikari, A. (2009). Factors affecting employee attrition: a multiple
in Fig.6. The model was quite robust over its counterpart regression approach. IUP Journal of Management Research, 8(5),
glmboost in terms of accuracy as well as error rate. 38.