PROJECT REPORT

HR ANALYTICS EMPLOYEE ATTRITION AND PERFORMANCE

PREPARED BY
SADIKA SULTANA SHAIK
AMEER ALI SHAIK
MOHIT SHARMA
 PROJECT OVERVIEW

In today’s competitive job market, retaining top talent and enhancing employee performance

are critical challenges for organizations. High employee turnover and suboptimal performance

can significantly impact productivity and financial outcomes. Our organization recognizes the

need to leverage data-driven insights to address these challenges and ensure a more engaged

and productive workforce.

Problem Statement
The HR department is embarking on an HR analytics project to analyze existing HR data and

develop actionable insights that can enhance employee retention and performance. The

primary goal of this project is to identify key factors influencing employee turnover and

performance and to develop strategies to address these issues proactively.

Objectives
1. Analyze historical HR data, including employee demographics, job roles, compensation,

performance evaluations, and turnover records.

2. Identify patterns, trends, and correlations within the HR data to gain a deep

understanding of factors contributing to employee turnover and performance.

3. Create a performance enhancement strategy based on data-driven insights, including

targeted training and development programs, compensation adjustments, and career

progression plans.

Scope
1. The project will focus on data analysis and modeling, drawing insights from historical HR

data.

2. Data sources will include HR records, performance evaluations, compensation data, and

exit interviews

3. The project will encompass the analysis of several years' worth of data to identify long-

term trends and patterns.

 1. Data Preparation & Cleaning

The dataset is obtained from: - https://github.com/rishabhgoyal0498/Final-Project

The data consists of 1470 rows and 35 columns. And there are no null and duplicate values in the
dataset.

Some numerical columns like Education, environment satisfaction, Job Involvement, Job Satisfaction,
Job Level, Performance Rating, Relationship Satisfaction and Work life balance are replaced with
categorical values.

The columns that are unnecessary for the analysis are deleted (Over18, Employee Count, Employee
Number, Standard Hours)

Dataset Description
Table 1 – Numerical features used in the user attrition analysis model

Column Name Column Description Min Max Std Deviation

Value Value
Age Age of employee 18 60 9.135
DailyRate It is the billing cost for an individual's 102 1499 403.50
Services for a single day
DistanceFromHome It is the distance between company and 1 29 8.1
home of the employee
HourlyRate The amount of money an employee is paid 30 100 20.32
per hour of work.
MonthlyIncome Gross monthly income is the amount of 1009 19999 4707.9
income an employee earns in one
month.
MonthlyRate If a monthly rate is set, employees should 2094 26999 7117.78
be paid in exchange for normal
hours of work of a full-timeworker.
NumCompaniesWorked Number of other companies the employee 0 9 2.498
previously worked for
PercentSalaryHike The amount a salary is increased of an 11 25 3.659
employee in percentage
StockOptionLevel Employee stock options. 0 3 0.852
TotalWorkingYears Total number of years employee worked 0 40 7.780

TrainingTimesLastYear No of months the employee is trained by 0 6 1.289

the company.
YearsAtCompany Total Number of Years at the 0 40 6.126
Company
YearsInCurrentRole Number of years employee worked in 0 18 3.62
 current role
YearsSinceLastPromotion Number of years of an employee since last 0 15 3.22
promotion
YearsWithCurrManager Number of years employee worked with 0 17 3.568
current manager

Table 2 – Categorical Features used in the User Attrition Analysis Model

Column Name Column Description Number of

Unique
Values
Attrition Attrition in business describes a gradual but deliberate 2
reduction in staff numbers that occurs as employees
retire or resign, [NOTE: Target Variable] (0=no, 1=yes)
BusinessTravel Business travel is travel undertaken for work or business 3
purposes, as opposed to other types of travel (1=No
Travel, 2=Travel Frequently, 3=Travel Rarely)
Department Consists three departments that contribute to the 3
company's overall mission. (1=HR, 2=R&D, 3=Sales)
Education Education qualification of the employees of company 5
EducationField Education field of the employees (1=HR, 2=Life Sciences, 6
3=Marketing, 4=Medical Sciences, 5=others, 6= Technical)
EnvironmentSatisfaction It is all about an individual's feelings about the work 4
environment and organization culture
Gender Gender of the employee (1=Female, 2=Male) 2
JobInvolvement Job involvement refers to the degree to which a job is central 4
to a person's identity.
JobLevel Job levels are categories of authority in an organization 5
JobRole These refer to the specific activities or work that the 9
employee will perform. (1=HC Rep, 2=HR, 3=Lab Technician,
4=manager, 5= Managing Director, 6= Research Director,
7= Research Scientist, 8=sales Executive, 9= Sales
Representative
JobSatisfaction Job satisfaction happens when an employee feels he or she 4
is having job stability
MaritalStatus Marital Status of the employee (1=divorced, 2=married, 3
3=single)
OverTime (1=No, 2=Yes) 2
PerformanceRating Rating means gauging and comparing the performance. 2
RelationshipSatitsfaction It is the rate of satisfaction between employer–employee 4
relationship.
WorkLifeBalance Work-life balance refers to the level of prioritisation 4
between personal and professionalactivities in an
individual’s life.
 2. Exploratory Data Analysis

Exploratory Data Analysis (EDA) is a crucial step in the data analysis process where one examines and
visualizes the data to gain insights, detect patterns, and identify relationships. EDA helps in
understanding the underlying structure of the data, finding anomalies, and formulating hypotheses.

Overall Attrition

 There are 1233 ‘No’ and

237 ‘Yes’ responses from
total 1470 Observations.
The Attrition rate is 16.1%,
indicating that the dataset
is unbalanced, with a
significantly greater
number of observations
belonged to ‘No’ compared
to ‘Yes’.

Distribution of Age

 The company has most of

the employees aged
between 25 -38 i.e., total of
825 out of 1470 employees.
Attrition by Gender

 The company consists total 588 female employees and the Attrition count female employees
is 87 and
 The total of 882 male employees and the Attrition count of male employees is 154.

Attrition by Department
  The Research and Development department consists of more employees compared with
others and the Attrition count is 133.
 The second highest department is Sales consists of 446 employees and the attrition count is
92.
 The HR department consists of least number of employees i.e., 63 and the Attrition count is
12.

Attrition by Monthly Income

 The total of 749 employees having their monthly income range between $1000 - $5000 out
of which 163 employees experienced are attrition.
 The total of 440 employees having their monthly income range between $1000 - $5000 out
of which 49 employees experienced are attrition.
 The total of 148 employees having their monthly income range between $1000 - $5000 out
of which 20 employees experienced are attrition.
 The total of 133 employees having their monthly income range between $1000 - $5000 out
of which 5 employees experienced are attrition.
 From the Output we can conclude that,As Income Increases the attrition rate decreases.

Attrition by Salary Hike

 Attrition is highest among

employees who receive
salary hike of 11 – 15%.
 Attrition decreases as salary hike
increases
Attrition by Department

 Majority of the employees are from R&D

department and sales.
 R&D depart has the highest
attrition rate- Could be a
consequence of the higher
number of people from R&D.
 Overall Attrition is more in sales
as it has a smaller number of
employees and more attrition
as compared with R&D.

Attrition by Job Level

 Majority of the employees are in Junior

and entry level.
 Most Attrition is from Entry level, followed
by Junior level.
 Figure shows that juniors are
leaving the company most –
addressing problems faced by
Entry level at the company
could help reduce attrition.

Attrition by Relationship with Colleagues

 Majority of employees have high and

very high relationship satisfaction.
  Employees with low relationship satisfaction has high Attrition Rate compared with others.

Attrition based on Job Satisfaction

 The Attrition rate is low for employees with

high and very high Job Satisfaction.
 The Attrition rate is high for employees with
medium and low job satisfaction.

Attrition based on Environment Satisfaction

 By looking into the bar

graph, it is visual that
environment
satisfaction does not
play major role in
attrition.
 Though low satisfaction has little more
attrition but not major difference.

Attrition by Job Role

 Sales Executive, Sales Representative,

Research Scientist and Lab Technicians
has highest Attrition rate compared
with other Job Roles.
Job Satisfaction based on Job Level

 Job Satisfaction is higher for Junior and

Entry Level employees, whereas there
is Medium to Low Job Satisfaction for
Executive Level employees.

Performance Rating based on Experience

 Employees with more experience

have high performance rating
compared with employees with
less experience

Performance Rating based on Training

  Majority of the employees
received training 2 -3 times last
year and having excellent and
outstanding performance.

Performance Rating based on Relationship Satisfaction

 By looking into the Relationship

Satisfaction does not play major
role in performance rating

Performance Rating based on Income

 By looking into the graph

Income does not play major
role in performance rating

Correlation Matrix
  There is a strong positive correlation (0.68) between the 'Age' of employees and their 'Total
Working Years,' indicating that, as employees age, their total number of working years tends
to increase.
 'Monthly Income' and 'Total Working Years' exhibit a strong positive correlation (0.77),
indicating that employees with more total working years tend to have higher monthly
income.
 There is a strong positive correlation (0.76) between 'Years at Company' and 'Years in Current
Role,' suggesting that employees who have spent more years at the company also tend to
have longer tenures in their current roles.
 A strong positive correlation (0.77) is observed between 'Years at Company' and 'Years with
Current Manager,' indicating that employees who have been with the company for a longer
duration also tend to have longer associations with their current managers.

3. CONCLUSION

In conclusion, this project successfully achieves its primary goal of identifying key factors influencing
employee turnover and performance. The comprehensive analysis of the dataset has provided
valuable insights into various aspects of employee dynamics within the organization.

The dataset is unbalanced, as most employees indicate "No" for attrition. This highlights the
significance of taking a targeted strategy to identify the particular traits linked with employees that
experience turnover. The determined variables—age, gender, department, monthly income, and
work-related characteristics—help to provide a more detailed picture of the intricate interactions
affecting performance and attrition.

The company may use these data going ahead to create proactive plans that will improve worker
retention, happiness, and productivity. A more focused and successful human resource strategy may
be achieved by customizing interventions based on the criteria that were identified. Examples of
these interventions include developing department-specific retention programmes, addressing
gender-specific issues, and developing age-specific engagement programmes.

The importance of providing employees with professional development opportunities is further

shown by the association found between experience and performance. Reducing attrition can also be
greatly aided by fostering stronger bonds between coworkers, particularly in departments where
attrition is higher, and by matching income scales to worker happiness.

Finally, the company is in a better position to take proactive steps that promote a healthy work
environment, assist professional development, and ultimately contribute to the success and stability
of the workforce overall by knowing the nuances of employee turnover and performance. In order to
effectively and specifically address employee attrition and improve performance, strategic planning
and evidence-based decision-making are based on the project's findings.