A Project On

Predicting Employee Attrition Using

Data Analytics

By

Team Code: PR5BA062225

Bidisha Das (Enrollment No: 12022003021050)

Suvojit Dutta (Enrollment No: 12022003021043)

Sk Sultan (Enrollment No: 12022003021039)

Subhadeep Samanta (Enrollment No: 12022003021034)

Pragya Chatterjee (Enrollment No: 12022003021024)

Under the Guidance of:

Prof. Sreeparna Guha

Date of Submission: 28/03/2025

BBA DEPARTMENT
INSTITUTE OF ENGINEERING & MANAGEMENT
(MAULANA ABUL KALAM AZAD UNIVERSITY OF TECHNOLOGY,WB)
KOLKATA
 APPROVAL FORM

STUDENT’S PROFILE

Name Registration No. Signature

Bidisha Das 223662010200

TEAM Suvojit Dutta 223662010238

No:

Sk Sultan 223662010232
PR5BA06-
2225
Pragya
223662010217
Chatterjee
Subhadeep
223662010236
Samanta

INSTITUTE INSTITUTE OF ENGINEERING & MANAGEMENT

MAULANA ABUL KALAM AZAD UNIVERSITY OF

UNIVERSITY
TECHNOLOGY, WEST BENGAL

PROJECT DETAILS
PROJECT TITLE Predicting Employee Attrition Using
Data Analytics

DURATION 4 MONTHS

APPROVED BY
ACADEMIC SUPERVISOR Prof. Sreeparna Guha, BBA Department, IEM

SIGNATURE

PROJECT COORDINATOR Prof. (Dr.) Dibyendu Chattaraj, BBA Department

SIGNATURE

DEPARTMENT HEAD Prof. (Dr.) Rabin Mazumder, BBA Department

SIGNATURE
 DECLARATION

We, BIDISHA DAS, SK SULTAN, SUVOJIT DUTTA , PRAGYA CHATERJJEE,

SUBHODEEP SAMANTA hereby declare that the project entitled “PREDICTING
EMPLOYEE ATTRITION USING DATA ANALYTICS” submitted by us to the Institute
of Engineering & Management, Salt Lake, Kolkata, in partial fulfillment of the requirement
for the award of the degree of Bachelor Of Business Administration is a record of authentic
project work carried by our team under the supervision of PROF SREEPARNA GUHA.

We further declare that the work reported in this project has not been submitted and will not
be submitted either in part or in full, for the award of any degree or diploma in any other
institute or university.

Name of the Team Members Signature

BIDISHA DAS

SUVOJIT DUTTA

SK SULTAN

PRAGYA CHATERJEE

SUBHODEEP SAMANTA

BBA : 2022 - 2025

PLACE : KOLKATA

DATE : 28/03/2025
 ACKNOWLEDGEMENT

Name of the Team Members Signature

BIDISHA DAS

SUVOJIT DUTTA

SK SULTAN

PRAGYA CHATERJEE

SUBHODEEP SAMANTA

BBA : 2022 - 2025

PLACE : KOLKATA

DATE : 28/03/2025
 INDEX

SL.NO CHAPTERS PG.NO

1 EXECUTIVE 1
SUMMARY
2 INTRODUCTION 2

3 LITERATURE 3-5

REVIEW /
BACKGROUND OF THE
STUDY

4 OBJECTIVES 6

5 RESEARCH 7-8

METHODOLOGY

6 ANALYSIS AND 9-15

FINDINGS

7 CONCLUSION 16-17

8 LIMITATIONS 18

9 IMPLICATION 19

10 REFERENCES 20

11 ANNEXURE
 EXECUTIVE SUMMARY

This report analyzes employee attrition patterns and identifies key influencing factors to help
improve employee retention. The analysis is based on an HR Employee Attrition Dataset consisting
of 1,470 records and 35 attributes, including age, gender, department, job role, education, monthly
income, work-life balance, and job satisfaction.

Key Findings

• Overall Attrition Rate: 16.12% of employees left the company, while 83.88%
stayed.

• Gender: Male employees had a higher attrition rate (17.01%) compared to

females (14.80%).

• Department: Sales (20.63%) and Human Resources (19.05%) experienced the

highest attrition rates, while Research & Development had a lower rate (13.84%).

• Overtime: Employees working overtime had a significantly higher attrition

rate (30.53%) compared to those not working overtime (10.44%).

• Work-Life Balance & Job Satisfaction: Poor work-life balance and low job
satisfaction were identified as critical drivers of attrition.
 INTRODUCTION

Employee attrition, commonly referred to as employee turnover, is an important topic in

human resource management, affecting organizations across industries. It is the phenomenon
where employees voluntarily or involuntarily leave their positions within an organization.
Employee attrition has significant implications for organizational performance, including
increased recruitment and training costs, loss of productivity, and a potential decline in
employee morale. Therefore, it is essential to understand the underlying factors influencing
employee attrition to develop effective retention strategies and improve overall organizational
effectiveness.Employee attrition, the gradual reduction in workforce due to voluntary or
involuntary departures, is a critical challenge for organizations across industries. Employees
leave for various reasons, including personal career aspirations, dissatisfaction with job
conditions, workplace culture, inadequate compensation, or external opportunities. While
some attrition is natural and even beneficial for organizational renewal, excessive turnover can
have severe consequences, such as increased recruitment and training costs, loss of institutional
knowledge, decreased morale, and reduced productivity. High attrition rates can indicate
deeper organizational issues, such as poor employee engagement, lack of career development
opportunities, or ineffective leadership. Understanding and analyzing employee attrition is
crucial for organizations to identify patterns, predict turnover risks, and develop effective
retention strategies. Researchers and HR professionals use a combination of qualitative
insights and data-driven approaches, including statistical models, machine learning algorithms,
and HR analytics, to assess the factors influencing attrition. By leveraging these insights,
organizations can proactively address the root causes of turnover, improve employee
satisfaction, and create a more stable, motivated workforce. In today’s competitive job market,
where skilled employees have numerous options, retaining talent has become a strategic
priority, making employee attrition analysis an essential area of study for both academia and
industry. In today’s fast-paced and competitive business environment, organizations face a
constant challenge—retaining top talent. Employee attrition, or the rate at which employees
leave a company over a given period, is a critical issue that impacts productivity, morale, and
overall business performance. While some turnover is natural and even beneficial, high or
unexpected attrition can signal deeper problems within the workplace.This research explores
the various factors contributing to employee attrition, using data-driven insights to identify
patterns and predict trends.

Employee attrition analysis is a crucial process for organizations aiming to understand and
address workforce turnover. In today’s competitive business environment, retaining top talent
is as important as attracting new employees. High attrition rates can lead to increased
recruitment costs, disruptions in workflow, and a decline in overall morale. By studying the
patterns and reasons behind employee departures, companies can make data-driven decisions
to improve job satisfaction, engagement, and retention strategies. This analysis helps in
identifying trends, whether attrition is voluntary or involuntary, and what factors—such as job
roles, compensation, leadership, or workplace culture—are influencing employees to leave.
LITERATURE REVIEW / BACKGROUND OF THE STUDY
Factors Influencing Employee Attrition

Several studies have identified factors that influence employee attrition, with both individual
and organizational variables playing crucial roles.

Individual Factors

Individual factors are personal characteristics that may influence an employee’s decision to
leave an organization. These factors include job satisfaction, compensation, career
development opportunities, work-life balance, and personal life circumstances.

- Job Satisfaction: Job satisfaction has consistently been identified as a key determinant of
employee attrition. Employees who are dissatisfied with their work environment, job roles, or
relationships with colleagues are more likely to leave an organization (Hom and Griffeth,
1995). Job satisfaction is influenced by factors such as the nature of the work, management
style, and the level of recognition an employee receives.

- Compensation and Benefits: Competitive compensation and benefits packages are

significant determinants of employee retention. Employees who feel that their efforts are not
appropriately rewarded may seek better opportunities elsewhere (Maertz and Campion, 1998).
However, while compensation is essential, research indicates that it is not always the primary
factor driving attrition, with intrinsic factors like job satisfaction playing a more significant
role in the long-term retention of employees (Ahuja, 2008).

- Work-Life Balance: A poor work-life balance is another factor contributing to attrition.

Employees who experience high levels of stress due to excessive workloads or lack of time for
personal and family responsibilities are more likely to leave their jobs (Greenhaus and Allen,
2011). Flexible work arrangements, such as remote work or flexible hours, have been shown
to improve employee retention (Kossek et al., 2006).
Organizational Factors

Organizational factors, including management practices, organizational culture, and career

development opportunities, play an essential role in determining employee attrition.

Management and Leadership: The role of leadership in influencing employee retention cannot
be overstated. Poor management practices, lack of communication, and micromanagement can
lead to high attrition rates. According to a study by Gallup (2013), employees who report poor
relationships with their managers are significantly more likely to leave their organizations. A
lack of trust in leadership also correlates with increased turnover intentions (Allen et al., 2010).

- Organizational Culture: Organizational culture encompasses the shared values, beliefs, and
behaviors within a company. A toxic or mismatched organizational culture can increase
attrition rates. Employees who perceive a lack of support, recognition, or alignment with
organizational values are more likely to leave (O'Reilly et al., 1991). A positive organizational
culture, characterized by open communication, inclusiveness, and respect, can enhance
employee loyalty and reduce attrition.
- Career Development Opportunities: Employees who perceive limited opportunities for career
growth or professional development may seek new job opportunities where they feel they can
advance. Career advancement and skill development are strong predictors of employee
retention (Morrison, 2003). Organizations that offer training, mentorship, and clear paths for
promotion often experience lower attrition rates.

Environmental and Economic Factors

The broader economic environment and industry-specific conditions can also impact employee
attrition. Economic downturns, for example, may lead to layoffs or reduce the availability of
alternative employment options, resulting in lower attrition rates. Conversely, during periods
of economic growth, employees may have greater opportunities to leave for better positions,
increasing attrition.

Employee Attrition and Its Impact on Organizations

Employee attrition has a profound impact on organizations, both financially and in terms of
human capital. The direct costs associated with employee attrition include recruitment,
onboarding, and training of new employees. Indirect costs, however, are equally significant,
including the loss of institutional knowledge, decreased productivity, and the potential impact
on team morale and customer satisfaction.

Costs of Attrition

One of the key costs associated with attrition is the financial burden of replacing employees.
Research by the Society for Human Resource Management (SHRM) suggests that the cost of
replacing an employee can range from 50% to 200% of the employee's annual salary,
depending on the level of the position (SHRM, 2016). These costs include advertising for open
positions, recruitment fees, onboarding programs, and training for new employees.

Impact on Organizational Performance

Employee attrition can also affect organizational performance. Frequent turnover disrupts team
cohesion, negatively impacting productivity and efficiency (Dewitt and Kitzmiller, 2013).
Moreover, high attrition rates may signal underlying issues with management or organizational
culture, potentially damaging the organization’s reputation and its ability to attract top talent.

Strategies to Reduce Employee Attrition

To address employee attrition, organizations need to develop comprehensive strategies focused

on improving employee engagement, satisfaction, and retention.

-Employee Engagement Programs: Research by Harter et al. (2002) emphasizes the importance
of employee engagement in reducing turnover. Engaged employees are more likely to remain
with the organization and contribute to its success. Employee engagement programs that foster
communication, collaboration, and recognition can help improve job satisfaction and reduce
attrition.
- Retention Strategies: A study by Hom and Kinicki (2001) found that organizations that offer
competitive compensation, career development opportunities, and a positive work
environment are more successful in reducing attrition. Employee retention initiatives should
focus on understanding the reasons for employee departure through exit interviews, surveys,
and regular feedback mechanisms.

- Workforce Planning and Flexibility: Flexible work policies and strategies for managing
workforce diversity can improve retention. Providing employees with options like remote
work, flexible hours, or job-sharing opportunities can increase job satisfaction and reduce
voluntary attrition.
 OBJECTIVES

Here are three key objectives of employee attrition analysis:

1. Identify Causes of Attrition – Understand the key factors contributing to employee turnover,
such as job dissatisfaction, compensation, career growth, and work environment.

2. Predict Future Attrition – Use data-driven models to forecast which employees are at risk of
leaving, helping organizations take proactive measures.

3. Develop Retention Strategies – Design and implement targeted strategies to reduce attrition,
improve employee satisfaction, and enhance organizational stability.
 RESEARCH METHODOLOGY

Data Collection

Collect Data from Useful Sources:

Derive data from the following: HR System, Performance review, Employee Survey, Exit
interviews and many other systems available within the organization’s databases.

About Employees

Record characteristics regarding employees such as age,sex, level of education, marital status of their
job, their title and which section they work for, salary and other privileges offered on the position,
working duration in the firm (total years worked in the firm, total years served in the particular
position, total years served with the immediate supervisor), and the level of
evaluation of their productivity and satisfaction.

Status of Employees’ Attrition:

keeping records of the employee s attrition which is related to employment will enable the
supervisor to determine whether an employee has actually left the organization (yes or no, and
the associated details of that decision).

Data pre-processing

Preparation for the Data Analysis of the three part course involves unpackaging the data into
analysis friendly structure that contains no errors.

Conformance Data: for purposes of analysis, format errors, inconsistencies, and missing
measurable aspects of the dataset need to be corrected.

Researching the Data

Calculate basic data on record such as attrition ratio which depicts and employs a ratio from
the total rate of exits over a given datum period as partial denominator.
Ensure the explanation targets the reasons with highest correlation sensitivity to attrition and
those which would include satisfaction on the job, balance in family and work, chances to
advance to higher positions, and quality of the management. Examining
possible outcomes of relations assumed in the form of a regression graph aided with the use of slope logic
and trees to mark out which employees are bound to exit.
 ANALYSIS AND FINDINGS

Figure 1

The bar chart titled "Attrition Rate by Work-Life Balance" presents the relationship between
employees' perception of work-life balance and their likelihood of leaving the company. The chart
categorizes employees into two groups:
● "Yes" (Blue bars): Employees who have left the company (Attrition = Yes).
● "No" (Orange bars): Employees who have remained with the company (Attrition = No).
Key Observations from the Chart:
1. Work-Life Balance Ratings (X-Axis)
o The work-life balance ratings range from 1 to 4.
o A higher rating indicates better perceived work-life balance.
2. Number of Employees (Y-Axis)
o The y-axis represents the count of employees in each category.
3. Distribution by Work-Life Balance Rating
o Rating 1: Very few employees fall under this category. Slightly more employees
stayed than those who left.
o Rating 2: The number of employees is higher compared to rating 1. More employees
stayed, but there is a noticeable number of employees who left.
o Rating 3: This is the most common work-life balance rating. A significantly larger
number of employees remained in the company compared to those who left.
o Rating 4: Fewer employees fall under this category compared to rating 3, but a
noticeable portion stayed with the company.

Insights from the Chart:

1. Most Employees Rate Work-Life Balance as 3 or 2
o The majority of employees rate their work-life balance as 3, followed by 2.
o This suggests that most employees perceive their work-life balance as "average"
rather than poor (1) or excellent (4).
 2. Attrition is Present Across All Ratings
oEmployees leave the company regardless of their work-life balance rating.
oHowever, the attrition rate is lower for employees with a rating of 4.
3. Higher Work-Life Balance Rating Correlates with Lower Attrition
o Employees with a work-life balance rating of 3 or 4 tend to stay in the company
more.
Those with a lower rating (1 or 2) have a slightly higher proportion of attrition
 Figure2

The bar chart titled "Attrition Rate by Increment Category" presents the relationship between
salary increments (percentage increases in salary) and employee attrition. It classifies employees
into two groups:
● "Yes" (Blue bars): Employees who have left the company (Attrition = Yes).
● "No" (Orange bars): Employees who have remained with the company (Attrition = No).

Key Observations from the Chart:

1. Increment Categories (X-Axis)
o The x-axis represents different salary increment percentage ranges:
▪ 0-10%
▪ 10-15%
▪ 15-20%
▪ 20-25%
▪ 25%+
o These categories indicate how much of a salary raise employees received.
2. Number of Employees (Y-Axis)
o The y-axis represents the count of employees in each increment category.
3. Distribution by Increment Category
o 0-10%: No visible bars, meaning either no employees fall into this category or the
numbers are too small.
o 10-15%, 15-20%, and 20-25%: There are small bars in these categories, meaning
fewer employees receive increments in these ranges.
o 25%+: This is the most significant category, with a high number of employees
receiving such increments. Most of them stayed (orange bar), while a small number
left (blue bar).
Insights from the Chart:
1. Most Employees Receive a High Increment (25%+)
o The largest number of employees received an increment of 25% or more.
o The vast majority of these employees stayed with the company, as seen from the
dominant orange bar.
o A small number of employees in this category still left, indicating that a high
increment does not completely prevent attrition but significantly reduces it.
2. Lower Increment Categories Have Lower Employee Counts
o Very few employees fall into the 10-15%, 15-20%, and 20-25% increment
ranges.
o These categories have both retained and attrition cases but in much smaller
numbers.
o This suggests that most employees either receive very high increments (25%+) or
none at all (0-10%).
3. Minimal Attrition Across All Increment Categories
o Across all increment categories, the attrition rate (blue bars) is quite low.
o This suggests that salary increments alone might not be the primary reason for
employees leaving the company.

Model Accuracy Precision Recall F1-score

0.840000 0.000000 0.000000 0.000000
SV
M
Naive Bayes 0.354167 0.607143 0.447368
0.76000
0
Random 0.428571 0.107143 0.171429
Forest
0.83428
6
0.845714 0.545455 0.214286 0.307692
XGBoos
t

Feature Importance Map (Random forest & XG Boost)

 Figure 3
The figure is titled "Random Forest Feature Importance", indicating that it visualizes how
much each feature contributes to the model's predictions.
X-Axis:
● The x-axis lists various features used in the model, such as:
o Financial & Work-Related Factors: Monthly Income, Total Working Years,
Hourly Rate, Daily Rate, etc.
o Demographic Information: Age, Marital Status, Gender, Education Level.
o Job-Specific Factors: Job Role, Business Travel, Performance Rating, Work-Life
Balance.
o Satisfaction & Promotion-Related Factors: Job Satisfaction, Environment
Satisfaction, Training Times Last Year.
● The x-axis labels are rotated for readability due to the large number of features.

Y-Axis:
● The y-axis represents the feature importance score assigned by the Random Forest model.
● Higher values indicate more influential features in making predictions.
Key Observations:
1. Most Important Features:
o Monthly Income is the most influential feature, followed by Age and
Overtime_Yes.
o These features have the highest bars, indicating their strong impact on the model.
2. Moderately Important Features:
o Features like Total Working Years, Daily Rate, Hourly Rate, Employee
Number, and Distance from Home have noticeable importance but lower than the
top features

.
3. Less Important Features:
o Features related to specific job roles (e.g., JobRole_Research Director,
JobRole_Manager, JobRole_Human Resources), education fields, and
department names have very low importance.
4. Insights:
 o Salary (Monthly Income) and Age play a crucial role in the prediction,
potentially indicating that financial stability and experience are key factors.
o Overtime and Total Working Years are also significant, suggesting that
workload and tenure have a strong impact.
o Demographic and job role-specific features contribute less, meaning the model
relies more on work-related metrics than on specific roles or education
backgrounds.

Figure 4
This figure is a bar chart representing the feature importance values from an XGBoost
model. It shows which features have the most influence in predicting the target variable.
Key observations:
● The most important feature is OverTime_Yes, meaning whether an employee works
overtime significantly impacts the model’s predictions.
 ● JobRole_Sales Executive and JobLevel are also highly influential features.
● Other important features include MaritalStatus_Single, TotalWorkingYears,
StockOptionLevel, and MonthlyIncome.
● Features like PerformanceRating, EducationField_Other, and JobRole_Research
Director have the least impact in this model.
Overall, this chart helps in understanding which factors contribute most to the model’s decision-
making process.

CONCLUSION

The analysis of the employee attrition dataset reveals several key insights into the factors
contributing to employee turnover.
Key Drivers of Attrition:

● Job Role and Department: Certain job roles (e.g., Sales Representative, Laboratory
Technician) and departments (e.g., Sales, Research & Development) exhibit higher
attrition rates compared to others.
● Compensation: Monthly income and percent salary hike are significant factors.
Employees with lower income or smaller salary increases are more likely to leave.
● Work-Life Balance: Work-life balance plays a crucial role. Employees with lower work-
life balance ratings tend to have higher attrition rates.
● Environment Satisfaction: A lower level of environment satisfaction is associated with
increased attrition.
● Years Since Last Promotion: Employees who have gone longer without a promotion are
more prone to attrition.

Model Performance:

● Machine learning models, including Random Forest and XGBoost, were trained to predict
attrition. These models achieved good accuracy, indicating their ability to identify
potential attrition risks.

Recommendations
Based on the analysis, here are some recommendations for the organization to mitigate employee
attrition:

● Review compensation and benefits packages: Consider offering competitive salaries and
benefits to retain key employees, particularly in high-attrition roles.
 ● Enhance work-life balance initiatives: Implement flexible work arrangements, reduce
overtime, and promote work-life balance policies to improve employee satisfaction and
retention.
● Improve working environment: Address concerns related to environment satisfaction by
providing a supportive and positive workplace culture.
● Focus on career development: Offer opportunities for career advancement, such as
training and promotion opportunities, to keep employees engaged and motivated.
● Targeted interventions: Utilize the insights from the machine learning models to identify
employees at high risk of attrition and implement proactive measures to address their
concerns and retain them.

Further Investigation
Further analysis could include:

● Deeper investigation of the relationship between specific job roles and attrition.
● Exploring the impact of individual managers on employee turnover.
● Analyzing the effectiveness of existing retention initiatives.

By addressing the key drivers of attrition and implementing proactive retention strategies, the
organization can improve employee satisfaction, reduce turnover, and create a more engaged and
productive workforce.

Insights or Next Steps

Model Performance Evaluation: The next step should involve a detailed evaluation of the trained
classification models to determine which one offers the best performance. Metrics like precision,
recall, F1-score, and AUC should be considered in addition to accuracy.
Feature Importance: Analyze the importance of individual features for each model. This can help
identify factors that strongly influence employee attrition and potentially lead to refining the
model.
 LIMITATIONS
Challenges and Impact of Employee Attrition Analysis

Employee attrition analysis is a powerful tool for understanding why employees leave, but it
does come with limitations. Recognizing these challenges can help organizations interpret
findings more accurately and take effective action.

Limitations of Employee Attrition Analysis

Data Privacy and Access:

Strict regulations and ethical concerns can limit access to detailed employee data, making it
harder to conduct a thorough analysis.

Reliance on Employee Opinions:

Many insights come from surveys or exit interviews, but these responses can be subjective.
Employees might not always share their true reasons for leaving, which can skew the results.

Difficulty in Identifying Exact Causes:

Employee turnover is often influenced by multiple factors—salary, career growth, work environment,
personal circumstances—making it difficult to pinpoint one single cause.

Limited Applicability of Findings:

What holds true for one company or industry might not apply to another. Factors driving
attrition in a tech startup may be very different from those in a manufacturing firm.

Gaps in Data Skills:

Not all HR professionals have experience with data analysis, which can make it challenging to
interpret findings and translate them into actionable strategies.
 IMPLICATION
How Employee Attrition Affects Organizations
Higher Costs:
Every time an employee leaves, companies incur costs related to recruiting, onboarding, and
training replacements. There’s also a loss in productivity while the position remains vacant.
Reduced Productivity:
Frequent departures can disrupt workflows, break team cohesion, and slow down projects, leading
to an overall decline in efficiency.
Impact on Company Culture and Morale:
Constant turnover can create uncertainty among employees. If people keep leaving, it can
lower morale and make remaining employees feel disengaged or even consider leaving
themselves.
Loss of Knowledge and Expertise:
Experienced employees take valuable skills and insights with them, which can affect innovation,
decision-making, and long-term business growth.
Reputation Damage:
A company with high attrition may struggle to attract top talent, as frequent turnover can
signal instability or poor employee satisfaction to potential hires.
 REFERENCES

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