BDA Finaltest
BDA Finaltest
TRƯỜNG QUỐC TẾ
VNU – INTERNATIONAL SCHOOL
⁎⁎⁎
REPORT
Introduction to Business Data Analytic
Topic: Employee attrition analysis
INTRODUCTION
1. Reasons for selecting the topic
2. Objective
3. About the dataset
METHODOLOGY
CHAPTER 1: DESCRIPTIVE ANALYSIS
1. Data preprocessing
2. Descriptive Statistics for Nominal Variables
3. Descriptive Statistics for Quantitative Variables
CHAPTER 2: EXPLORATORY DATA ANALYSIS
1. Correlation Analysis between Variables
2. The Most Influential Factors on Employee Attrition
3. Factors Driving Employee Attrition: Visualizing and Analyzing the
Impact
3.1. Visualizing Factors Influencing Employee Attrition
3.2. Analyzing Individual Factors that Contribute to Employee Attrition
CHAPTER 3: PREDICTIVE ANALYSIS
Logistic Regression
CHAPTER 4: PRESCRIPTIVE ANALYSIS
CONCLUSION
APPENDIX
INTRODUCTION
2. Objective
The primary objective of this report is to provide a comprehensive
overview of HR Analytics and its application in Employee Attrition
analysis. Specifically, this report aims to answer 2 questions:
What are the key factors contributing to Employee Attrition?
How to reduce employee attrition through the dataset?
METHODOLGY
1. Data preprocessing:
Name Name
Travel_Frequentl
Business 277 Research Scientist 292
y
Travel
Laboratory
Non-Travel 150 259
Technician
JobRole
Research & Manufacturing
961 145
Development Director
Department Healthcare
Sales 446 131
Representative
OverTime No 1054
Yes 416
Observations:
Attrition rate:
Observations: Based on the pie chart of attrition rate, we can see that the
majority of employees in the dataset (83.9%) did not leave the company.
However, a significant proportion of employees (16.1%) did leave, which
indicates that attrition is a concern for the organization
Monthly
6502.9312 4707.9567 1009.000 19999.0
Income
Num
Companies 2.6931 2.4980 0.000 9.0000
Worked
Relationship
2.7122 1.0812 1.000 4.0000
Satisfaction
Years At
7.0081 6.1265 0.000 40.000
Company
Years In
4.2292 3.6231 0.000 18.000
Current Role
Years Since
Last 2.1877 3.2224 0.000 15.000
Promotion
Years With
Current 4.1231 3.5681 0.000 17.000
Manager
Performance
3.1537 0.3608 3.000 4.000
Rating
Total
Working 11.2795 7.7807 0.000 40.000
Years
Job
2.7299 0.7115 1.000 4.000
Involvement
Balance
Distance
9.1925 8.1068 1.000 29.000
From Home
Environment
2.7217 1.0930 1.000 4.000
Satisfaction
Job
2.7285 1.1028 1.000 4.000
Satisfaction
Working
Environme Percent
15.2095 3.6599 11.000 25.000
nt Factors Salary Hike
Standard
80.000 0.000 80.000 80.000
Hours
Stock
Option 0.7938 0.8520 0.000 3.000
Level
Training
Times Last 2.79993 1.2892 0.000 6.000
Year
Observations:
Observations:
Age and Total Working Years have the highest positive correlation
in the dataset, with a correlation value of 0.68. This indicates that
older employees tend to have more years of experience
Job Level and Monthly Income also have a strong positive
correlation, with a correlation value of 0.95. This suggests that
higher-level employees tend to have higher incomes
On the other hand, variables such as Education, Job Involvement,
and Performance Rating have relatively weak correlations with
Attrition (correlation values of -0.03, -0.13, and -0.002,
respectively), suggesting that they may not have a significant impact
on employee turnover.
Age is correlated with several features, including : NumCompanies
Worked, Monthly Income, Job Level, Education, and other more
obvious features such as relating to seniority.
Attrition has some negative correlation with the following features:
YearsWithCurrManager, YearsInCurrentRole, YearsAtCompany,
TotalWorkingYears, StockOptionLevel, MonthlyIncome, JobLevel,
JobInvolvement, EnvironmentSatisfaction, and Age. Attrition is also
correlated with OverTime
Job satisfaction seems to have no correlation with any of the other
features.
Performance Rating is highly correlated with PercentSalaryHike, i.e.
high performance earns better raises.
Finally, overtime is a factor that can cause stress and affect the health of
employees. If employees have to work overtime regularly, this can lead to
sleep disorders, stress, fatigue, increased risk of illness, and reduced work
performance. When employees feel unfairly treated in terms of working
hours, they may feel undervalued and decide to quit their jobs to seek better
opportunities.
AGE
Observation: From the count plot above, we can observe the attrition rate
based on age.
The plot shows that the highest attrition rate occurs among employees aged
29 and 31. After that, the attrition rate gradually decreases as the age
increases and remains relatively stable after the age of 40.
This may suggest that younger employees are more likely to leave the
company for various reasons such as low income or the desire for new
career opportunities. Older employees, on the other hand, may have more
job stability and a higher level of experience, making them less likely to
leave the company.
Why the highest attrition rate occurs among employees aged 28 and
29?
Observation:
The first plot shows that some young employees (from 25 to 35 years
old) have relatively low monthly incomes and tend to leave the
company. This may indicate that these young individuals are
dissatisfied with their salaries or are not paid in accordance with their
abilities.
The second plot indicates that the attrition rate increases among
employees around 28-33 years old and decreases as they get older.
This may suggest that these young individuals often have less work
experience, so they tend to look for new opportunities to develop
their careers or feel limited in their current jobs.
In summary, the data shows that the highest attrition rate is among young
people aged 28-33, for various reasons such as low income or the desire for
new career opportunities.
Observations:
A stacked bar chart shows the attrition rates for different age groups based
on the frequency of business travel. The x-axis shows the age groups, and
the y-axis shows the attrition rate. The bars are stacked based on the
frequency of business travel, with the colors representing the three
categories: no travel, rare travel and frequent travel.
From the chart, we can see that as the age increases, the attrition rate tends
to decrease. Additionally, we can compare the different age groups and see
which groups have a higher or lower attrition rate for each business travel
category.
For the age groups between 18-50, those who do not travel for
business have a higher attrition rate. They may feel unfairly treated
due to a lack of opportunities to explore and learn from new
environments
For those aged 50 and above, those who travel frequently tend to
have a higher attrition rate. Business Travel enthusiasts typically
require a lot of energy and enjoy exploring, but with age, they may
have less physical capacity and experience more fatigue after
business trips.
Observations:
Individuals with higher monthly incomes tend to have more years of
work experience
Individuals with lower monthly incomes tend to have fewer years of
work experience
Most individuals who have left the company have lower work
experience and lower monthly incomes compared to those who are
still employed.
These results suggest that individuals with higher incomes tend to have
more experience, which can lead to higher-paying positions. Additionally,
the fact that most individuals who left the company had less work
experience than those who remained suggests that long-term contributions
by employees can have a significant impact on their monthly income.
OverTime
Observations:
A chart demonstrating the attrition rate of employees based on their
overtime status has been presented in the form of a pie chart with two
elements, representing the attrition rate of employees who work overtime
(Yes) and those who do not (No)
It can be observed that the attrition rate of employees who work overtime
(Yes) is significantly higher than the attrition rate of employees who do not
work overtime (No). The attrition rate of employees who work overtime
(Yes) accounts for approximately 84.2%, while the attrition rate of
employees who do not work overtime (No) accounts for only about 15.8%.
This indicates that working overtime has a negative impact on the job
stability and psychological well-being of employees, leading to a higher
likelihood of them quitting their jobs compared to those who do not work
overtime.
How do Overtime and Distance from Home affect the Attrition rate?
Job Level
Why do people who have a lower job level have a tendency to leave the
company?
Average monthly income by years at company and job level
Observations:
This chart illustrates the change in average monthly income based on years
of experience at the company and job level. Job levels 1 through 5 are
displayed on the x-axis, while years of experience are displayed on the y-
axis.
Based on the chart, we can observe that the average monthly income
increases with job level and years of experience. Individuals who have
been with the company for approximately 7 to 10 years and work at higher
job levels (Job Level 4 and 5) have higher incomes compared to those who
have been with the company for different time periods and work at lower
job levels. From this, it can be seen that individuals with lower job levels
will have lower salaries, which may lead to thoughts of attrition.
Department
Attrition by department
Observations: The data indicates that the Research & Development
department had the highest resignation rate at 56.1%, followed by Sales at
38.8%, and Human Resources with the lowest rate at 5.1%. To improve
employee retention, it is recommended that the Research & Development
and Sales departments re-evaluate their organizational strategies and
conduct psychological surveys among their employees.
In order to figure out the factors to the Attrition rate, we analyzed the
Training Data by Regression of Analysis Tools in Excel.
According to the summary output from Excel, if some of the values in the
column of P-value are smaller than 0.05, the corresponding inputs X might
be the most influential factors. Thus, we figured out that
‘NumCompaniesWorked’, ‘YearsInCurrentRole’ and ‘JobInvolvement’ are
the most influential factors. Besides, we also decided to study the ‘Age’,
‘YearsSinceLastPromotion’ and ‘YearsWithCurrManager’. Furthermore,
the Residual Output from Excel shows that percent of accuracy is 87%.
Monthly Income: Employees who earn more are less inclined to quit
their jobs. Therefore, it is important to make an effort to learn about
local industry benchmarks in order to assess whether the company is
paying competitive wages.
Overtime: Employees who put in extra hours are more likely to quit
their jobs. Therefore, steps must be taken to properly scope projects
up front with enough support and personnel to minimize the need for
overtime.
YearsWithCurrManager: A significant portion of departing
employees do so six months after their current managers. One can
identify which Manager has had the most number of employees
resign over the past year by using the Line Manager details for each
employee. Here, a number of metrics can be utilized to decide
whether or not a Line Manager needs to be acted upon:
High turnover rates among employees who report to managers may
be a sign that the organizational structure needs to be reviewed in
order to increase efficiency.
Number of years a Line Manager has held a specific position: This
may indicate that the employees need management training or be
assigned a mentor (ideally an Executive) in the organization.
Resignation patterns of employees: This may indicate recurrent
patterns in employees leaving, in which case action may be taken
accordingly.
Age: Workers in the comparatively young 25–35 age group are more
likely to quit. Young employees should therefore be included in the
company's long-term goal, which should be clearly stated, and
incentives like clear paths to progression should be offered.
DistanceFromHome: Residents who reside more away from their
workplace have a higher likelihood of quitting. Therefore, efforts
should be made to support clusters of employees leaving the same
location via business transportation or through the payment of a
transportation allowance. As long as employees arrive at work on
time each day, initial screening of employees based on their
residence is probably not advised because it would be seen as
discrimination.
TotalWorkingYears: Longer tenured staff members are less likely to
leave. It is advisable to identify employees with 5-8 years of
experience as potentially having a higher chance of leaving.
YearsAtCompany: Long-standing businesses are less likely to
disband. Two-year anniversary employees should be noted as
possibly having a higher probability of quitting.
CONCLUSION
The aim of this report was to analyze the factors contributing to employee
attrition and performance in the company and provide recommendations for
improving employee retention and productivity.
While our analysis provides valuable insights into the factors influencing
employee attrition and performance, our approach has some limitations.
One limitation is that the dataset only includes information from one
company, which may limit the generalizability of our findings.
Additionally, our analysis was based on a correlational approach, which
cannot infer causality.
Overall, our report highlights the importance of addressing key factors such
as age, monthly income, job satisfaction, distance from home,... to improve
employee retention and performance. We hope that our recommendations
will be useful for the company in developing strategies to retain and
motivate its workforce.
APPENDIX
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