HR Analytics

(Attrition)
at

Group 8

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 Summary Slide
Company Problem
IBM Attrition is a major problem
in IT Industry and hence its
rectification becomes
important

Tools & Broad Recommendation

Techniques ● Improving the work
environment
SPSS, Excel, Tableau ● Improving manager-employee
(T Test, Chi Square, Regression, relationship
ANOVA) ● Providing high compensation

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IBM
● IBM was founded in 1928

● IBM India Private Limited is the Indian subsidiary of IBM. It

has facilities in Ahmedabad, Bengaluru, Bhubaneshwar,
Chennai, Coimbatore, Delhi, Gurgaon, Hyderabad, Kochi,
Kolkata, Mumbai, Noida, Pune and Visakhapatnam

● Total no. of employees: 1,40,000

● Between 2003 and 2007, IBM's headcount in India has grown

by almost 800%, from 9,000 in 2003 to nearly 74,000 in 2007

● Since 2006, IBM has been the multinational with the largest
number of employees in India
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Justification of the Project

● Attrition is important to understand because it can decrease labor costs without

incorporating staff departures. As employees retire, the company can perform what is
called a hiring freeze. It means that when employees start to retire, the company doesn't
replace them

● Therefore, we decided to study Attrition using various independent variables like age,
gender, job roles, business travel, job level, overtime, etc

● We incorporated various tests like: Independent Sample T test, Chi Square Test and
ANOVA, etc

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 Attrition rate across Industry

❖ Attrition rate of IT industry is 13.3%

❖ Attrition rate of IBM is 16.12%
❖ Attrition rate of IBM’s competitors are:
➢ Infosys: 20.1%
➢ Wipro: 20.5%
➢ TCS: 11.9%
➢ HCL: 15.7%
➢ Cognizant: 31%

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 Problems due to Attrition
Impact on Revenue
Hiring expenses, training
labor, lost sales, productivity,
etc.
Deteriorating Product
or Service Quality
Disruption in daily operations
due to overall low number of
employees or new and
inexperienced employees
Low Workplace Morale
More difficulty in attracting and
keeping high-quality talent
Reduction in Marketing
Return on Investment
Increase in the cost of one-time
customer, lowering marketing
return on investment
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 Data Source
▴ The Data has been taken from Kaggle

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 Process Result
Hypothesis Test Result
Attrition is affected by Age Independent sample T Test Age does NOT affect attrition

Attrition is affected by Gender Chi Square Test Attrition is NOT affected by Gender

Attrition is affected by Job role Chi Square Test Attrition is affected by Job role

Attrition is affected by Marital Status Chi Square Test Attrition is affected by Marital Status

Attrition is affected by Business travel Chi Square Test Attrition is affected by Business travel

Attrition is affected by Job Level Chi Square Test Attrition is affected by Job Level

Attrition is affected by Overtime Chi Square Test Attrition is affected by Overtime

Attrition is affected by Performance Independent sample T Test Performance does not affect attrition

Attrition is affected by work-life balance Independent sample T Test Work life balance affects attrition

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 Process Result
Hypothesis Test Result
Years in the current company do not
Independent T Test
Attrition is affected by years in the current company affect attrition

Years with the current manager affects

Independent T Test
Attrition is affected by years with the current manager attrition

Job Satisfaction is affected by years with the current Job Satisfaction is NOT affected by years
ANOVA
manager with the current manager

Attrition is affected by Distance from home Independent T Test Distance from home affects attrition

Attrition is NOT affected by percentage

Independent T Test
Attrition is affected by percentage salary hike salary hike

Attrition is affected by percentage salary

Independent T Test
Attrition is affected by monthly salary hike

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 Process Result
Hypothesis Test Result
Attrition is affected by Total
Independent sample T Test
Attrition is affected by Total working years working years

Attrition is NOT affected by

Independent sample T Test
Attrition is affected by Training time last year Training time last year

Attrition is affected by years since promotion Attrition is NOT affected by years

Independent sample T Test
since promotion

Attrition is affected by Job involvement Independent sample T Test Attrition is affected by Job
involvement

Job Satisfaction is affected by years since Job Satisfaction is NOT affected

ANOVA
promotion by years since promotion

Job Involvement is affected by years since ANOVA Job Involvement is NOT affected
promotion by years since promotion

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 Process Result
Hypothesis Test Result

Job Involvement is affected by Job Level ANOVA Job Involvement is NOT affected
by Job Level

Job Satisfaction is affected by Job Level ANOVA Job Satisfaction is NOT affected
by Job Level

ANOVA Job Satisfaction is NOT affected

Job Satisfaction is affected by Overtime by Overtime

Job Involvement is affected by years with current Job Involvement is affected by

ANOVA
manager years with current manager

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 Process Result

Hypothesis Test Result Implications

Individuals who are rating Job
Level as 1 are 7.7 times more
Attrition is affected by Job likely to leave the organization
Chi Square Test Job level affects Attrition
Involvement while individuals rating 2 are
Regression
2.4 times more likely to leave
the organization

Individuals who are rating

Attrition is affected by Chi Square Test Environment Satisfaction environment satisfaction as 1
environment satisfaction Regression affects attrition are 2.6 times more likely to
leave the organization

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Dashboard

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 Recommendations
● Distance from home affects attrition, but it is indicative from the data that as the distance from
home increases, the attrition rate is decreasing, and the monthly income is increasing. Therefore,
income is a more significant factor, and hence salary levels must be ensured appropriately to
maintain satisfaction amongst even the employees who reside far from the office.

● Since attrition is being affected by the current years with the managers as well, it’s important to
maintain fair treatment by supervisors. Hence training should be provided to supervisors and
managers to develop effective relationships with their subordinates. To effectively measure their
supervisory abilities, and to encourage them to focus on retention is to measure the retention
among their teams. This metric can be incorporated into the company’s evaluation and reward
system.

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● Since, individuals who are rating environment satisfaction as 1 are 2.6 times more
likely to leave the organization, by involving experienced organization insiders as role
models, mentors and by providing the new hires with positive feedback may
discourage turnover by keeping employees engaged and increasing their involvement
with the organization.

● Since business travel is a major factor affecting attrition, it should be ensured that the
job responsibilities requiring traveling should be distributed evenly amongst the team.

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Thank You!

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