quanggiang169 2024-10-28
Objective: Analyze HR data to understand the factors influencing employee attrition.
Attrition refers to the gradual reduction of a company’s workforce due to voluntary employee departures, such as resignations, retirements, or other forms of separation where roles are not immediately filled. Unlike turnover, which includes both voluntary and involuntary exits, attrition typically highlights employees’ personal decisions to leave, often for new opportunities or lifestyle changes.
Attrition is a natural part of an organization’s lifecycle, but high attrition rates can signal deeper issues and create significant challenges. Managing attrition is crucial for several reasons:
- Organizational Continuity: Each departure affects the flow of knowledge, skills, and experience within the company. Frequent attrition disrupts team dynamics, lowers continuity, and may delay projects as new hires get up to speed.
- Financial Impact: High attrition incurs substantial costs, including expenses for recruiting, onboarding, and training new employees, which can be as high as 30% to 50% of a departing employee’s annual salary.
- Employee Morale and Productivity: High attrition often places extra pressure on remaining staff, who must compensate for the loss. This can lead to employee burnout, reduced morale, and, ultimately, a drop in productivity, affecting team performance and the company’s overall efficiency.
In recent years, attrition rates have reached new highs. For example, according to the U.S. Bureau of Labor Statistics, voluntary departures accounted for 67% of separations in 2021—a significant increase driven by evolving employee priorities, heightened by the pandemic. This trend, known as the “Great Attrition,” underscores the urgent need for companies to understand why employees leave and to implement strategies that foster retention, engagement, and a positive work environment.
References
-
The Great Attrition: Facing the labor shortage conundrum - McKinsey & Company
-
Employee Attrition: Meaning, Impact & Attrition Rate Calculation- AIHR
-
Attrition: Definition, Types, Causes & Mitigation Tips- SHRM
The primary aim of this project is to analyze employee attrition data to uncover the key factors influencing employees’ decisions to leave. Through Exploratory Data Analysis (EDA), I hope to identify patterns and insights that reveal which characteristics, such as age, job position, experience, salary, or company culture, most strongly impact employee attrition.
Key questions guiding this analysis include:
- Are certain groups of employees more likely to leave than others?
- What characteristics are commonly found among employees who decide to leave?
- Which factors can be managed or improved to help reduce attrition rates?
By answering these questions, the EDA aims to provide actionable insights that can inform strategies to enhance employee retention and foster a more stable workforce.
library(tidyverse)## ── Attaching core tidyverse packages ──────────────────────── tidyverse 2.0.0 ──
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library(moments)
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## smiths
library(infotheo)The IBM HR Analytics Employee Attrition & Performance dataset is a fictional dataset created by IBM data scientists. Since not all features have descriptions, I have made interpretations of what they represent.
You can find the dataset here.
| Feature Name | Data Type | Description |
|---|---|---|
| Age | integer | Employee’s age in years |
| Attrition | factor | If the employee stayed or left the company (Yes ; No) |
| BusinessTravel | factor | How often the employee has business travel (Travel_Rarely ; Travel_Frequently ; Non-Travel) |
| DailyRate | integer | Employee’s daily rate in USD. |
| Department | factor | Which department the employee belongs to (Sales ; Research & Development ; Human Resources) |
| DistanceFromHome | integer | How far the employee lives from work in kilometers. |
| Education | integer | Employee’s education level (1 = Below College ; 2 = College ; 3 = Bachelor ; 4 = Master ; 5 = Doctor) |
| EducationField | factor | Employee’s education field (Life Sciences ; Medical ; Marketing ; Technical Degree, Human Resources ; Other) |
| EmployeeCount | integer | How many employees the current record represents. |
| EmployeeNumber | integer | Employee’s unique identification number |
| EnvironmentSatisfaction | integer | How satisfied the employee is with the company’s environment (1 = Low ; 2 = Medium ; 3 = High ; 4 = Very High) |
| Gender | factor | Employee’s gender (Female ; Male) |
| HourlyRate | integer | Employee’s hourly rate in USD |
| JobInvolvement | integer | How involved the employee feels with his/her job (1 = Low ; 2 = Medium ; 3 = High ; 4 = Very High) |
| JobLevel | integer | Employee’s job level (1 = Junior ; 2 = Mid ; 3 = Senior ; 4 = Manager ; 5 = Director) |
| JobRole | factor | Employee’s job role (Sales Executive ; Research Scientist ; Laboratory Technician ; Manufacturing Director ; Healthcare Representative ; Manager ; Sales Representative ; Research Director ; Human Resources) |
| JobSatisfaction | integer | How satisfied the employee feels with his/her job (1 = Low ; 2 = Medium ; 3 = High ; 4 = Very High) |
| MaritalStatus | factor | Employee’s marital status (Single ; Married ; Divorced) |
| MonthlyIncome | integer | Employee’s monthly income in USD |
| MonthlyRate | integer | Employee’s monthly rate in USD |
| NumCompaniesWorked | integer | Number of companies that the employee has already worked. |
| Over18 | factor | If the employee is over 18 years old (Yes) |
| OverTime | factor | If the employee makes overtime (Yes ; No) |
| PercentSalaryHike | integer | The percentage of the amount a salary is increased |
| PerformanceRating | integer | Employee’s performance rating (1 = Low ; 2 = Good ; 3 = Excellent ; 4 = Outstanding) |
| RelationshipSatisfaction | integer | How satisfied the employee feels with the relationship with his/her manager (1 = Low ; 2 = Medium ; 3 = High ; 4 = Very High) |
| StandardHours | integer | Employee’s standard hours of work per day |
| StockOptionLevel | integer | Employee’s stock option level (refer to: What You Should Know About Option Trading Levels) |
| TotalWorkingYears | integer | Total years that the employee has professionally worked |
| TrainingTimesLastYear | integer | Total times that the employee had a training session the last year |
| WorkLifeBalance | integer | How the employee feels about his/her work-life balance (1 = Bad ; 2 = Good ; 3 = Better ; 4 = Best) |
| YearsAtCompany | integer | Total years that the employee has worked at the company |
| YearsInCurrentRole | integer | Total years that the employee has worked in his/her current job role |
| YearsSinceLastPromotion | integer | Total years since the employee had his/her last promotion at the company |
| YearsWithCurrManager | integer | Total years that the employee has worked under his/her current manager |
df_hratt <- read_csv("dataset/WA_Fn_UseC_HR_Employee_Attrition.csv", col_types = cols())df_hratt_cln <- clean_names(df_hratt)## Number of rows: 1470
## Number of cols: 35
## spc_tbl_ [1,470 × 35] (S3: spec_tbl_df/tbl_df/tbl/data.frame)
## $ age : num [1:1470] 41 49 37 33 27 32 59 30 38 36 ...
## $ attrition : chr [1:1470] "Yes" "No" "Yes" "No" ...
## $ business_travel : chr [1:1470] "Travel_Rarely" "Travel_Frequently" "Travel_Rarely" "Travel_Frequently" ...
## $ daily_rate : num [1:1470] 1102 279 1373 1392 591 ...
## $ department : chr [1:1470] "Sales" "Research & Development" "Research & Development" "Research & Development" ...
## $ distance_from_home : num [1:1470] 1 8 2 3 2 2 3 24 23 27 ...
## $ education : num [1:1470] 2 1 2 4 1 2 3 1 3 3 ...
## $ education_field : chr [1:1470] "Life Sciences" "Life Sciences" "Other" "Life Sciences" ...
## $ employee_count : num [1:1470] 1 1 1 1 1 1 1 1 1 1 ...
## $ employee_number : num [1:1470] 1 2 4 5 7 8 10 11 12 13 ...
## $ environment_satisfaction : num [1:1470] 2 3 4 4 1 4 3 4 4 3 ...
## $ gender : chr [1:1470] "Female" "Male" "Male" "Female" ...
## $ hourly_rate : num [1:1470] 94 61 92 56 40 79 81 67 44 94 ...
## $ job_involvement : num [1:1470] 3 2 2 3 3 3 4 3 2 3 ...
## $ job_level : num [1:1470] 2 2 1 1 1 1 1 1 3 2 ...
## $ job_role : chr [1:1470] "Sales Executive" "Research Scientist" "Laboratory Technician" "Research Scientist" ...
## $ job_satisfaction : num [1:1470] 4 2 3 3 2 4 1 3 3 3 ...
## $ marital_status : chr [1:1470] "Single" "Married" "Single" "Married" ...
## $ monthly_income : num [1:1470] 5993 5130 2090 2909 3468 ...
## $ monthly_rate : num [1:1470] 19479 24907 2396 23159 16632 ...
## $ num_companies_worked : num [1:1470] 8 1 6 1 9 0 4 1 0 6 ...
## $ over18 : chr [1:1470] "Y" "Y" "Y" "Y" ...
## $ over_time : chr [1:1470] "Yes" "No" "Yes" "Yes" ...
## $ percent_salary_hike : num [1:1470] 11 23 15 11 12 13 20 22 21 13 ...
## $ performance_rating : num [1:1470] 3 4 3 3 3 3 4 4 4 3 ...
## $ relationship_satisfaction : num [1:1470] 1 4 2 3 4 3 1 2 2 2 ...
## $ standard_hours : num [1:1470] 80 80 80 80 80 80 80 80 80 80 ...
## $ stock_option_level : num [1:1470] 0 1 0 0 1 0 3 1 0 2 ...
## $ total_working_years : num [1:1470] 8 10 7 8 6 8 12 1 10 17 ...
## $ training_times_last_year : num [1:1470] 0 3 3 3 3 2 3 2 2 3 ...
## $ work_life_balance : num [1:1470] 1 3 3 3 3 2 2 3 3 2 ...
## $ years_at_company : num [1:1470] 6 10 0 8 2 7 1 1 9 7 ...
## $ years_in_current_role : num [1:1470] 4 7 0 7 2 7 0 0 7 7 ...
## $ years_since_last_promotion: num [1:1470] 0 1 0 3 2 3 0 0 1 7 ...
## $ years_with_curr_manager : num [1:1470] 5 7 0 0 2 6 0 0 8 7 ...
## - attr(*, "spec")=
## .. cols(
## .. Age = col_double(),
## .. Attrition = col_character(),
## .. BusinessTravel = col_character(),
## .. DailyRate = col_double(),
## .. Department = col_character(),
## .. DistanceFromHome = col_double(),
## .. Education = col_double(),
## .. EducationField = col_character(),
## .. EmployeeCount = col_double(),
## .. EmployeeNumber = col_double(),
## .. EnvironmentSatisfaction = col_double(),
## .. Gender = col_character(),
## .. HourlyRate = col_double(),
## .. JobInvolvement = col_double(),
## .. JobLevel = col_double(),
## .. JobRole = col_character(),
## .. JobSatisfaction = col_double(),
## .. MaritalStatus = col_character(),
## .. MonthlyIncome = col_double(),
## .. MonthlyRate = col_double(),
## .. NumCompaniesWorked = col_double(),
## .. Over18 = col_character(),
## .. OverTime = col_character(),
## .. PercentSalaryHike = col_double(),
## .. PerformanceRating = col_double(),
## .. RelationshipSatisfaction = col_double(),
## .. StandardHours = col_double(),
## .. StockOptionLevel = col_double(),
## .. TotalWorkingYears = col_double(),
## .. TrainingTimesLastYear = col_double(),
## .. WorkLifeBalance = col_double(),
## .. YearsAtCompany = col_double(),
## .. YearsInCurrentRole = col_double(),
## .. YearsSinceLastPromotion = col_double(),
## .. YearsWithCurrManager = col_double()
## .. )
## - attr(*, "problems")=<externalptr>
##
## character numeric
## 9 26
## age attrition
## 0 0
## business_travel daily_rate
## 0 0
## department distance_from_home
## 0 0
## education education_field
## 0 0
## employee_count employee_number
## 0 0
## environment_satisfaction gender
## 0 0
## hourly_rate job_involvement
## 0 0
## job_level job_role
## 0 0
## job_satisfaction marital_status
## 0 0
## monthly_income monthly_rate
## 0 0
## num_companies_worked over18
## 0 0
## over_time percent_salary_hike
## 0 0
## performance_rating relationship_satisfaction
## 0 0
## standard_hours stock_option_level
## 0 0
## total_working_years training_times_last_year
## 0 0
## work_life_balance years_at_company
## 0 0
## years_in_current_role years_since_last_promotion
## 0 0
## years_with_curr_manager
## 0
Note: Because the data set is fictional, it is free of any NaN values.
# Separate numerical and categorical attributes
num_attributes <- df_hratt_cln %>% select(where(is.numeric))
cat_attributes <- df_hratt_cln %>% select(where(negate(is.numeric)))| attributes | min | max | range | mean | median | std | skewness | kurtosis |
|---|---|---|---|---|---|---|---|---|
| age | 18 | 60 | 42 | 3.692381e+01 | 36.0 | 9.1353735 | 0.4128645 | 2.593149 |
| daily_rate | 102 | 1499 | 1397 | 8.024857e+02 | 802.0 | 403.5090999 | -0.0035150 | 1.796189 |
| distance_from_home | 1 | 29 | 28 | 9.192517e+00 | 7.0 | 8.1068644 | 0.9571400 | 2.771852 |
| education | 1 | 5 | 4 | 2.912925e+00 | 3.0 | 1.0241649 | -0.2893854 | 2.438706 |
| employee_count | 1 | 1 | 0 | 1.000000e+00 | 1.0 | 0.0000000 | NaN | NaN |
| employee_number | 1 | 2068 | 2067 | 1.024865e+03 | 1020.5 | 602.0243348 | 0.0165571 | 1.776899 |
| environment_satisfaction | 1 | 4 | 3 | 2.721769e+00 | 3.0 | 1.0930822 | -0.3213261 | 1.797487 |
| hourly_rate | 30 | 100 | 70 | 6.589116e+01 | 66.0 | 20.3294276 | -0.0322780 | 1.803588 |
| job_involvement | 1 | 4 | 3 | 2.729932e+00 | 3.0 | 0.7115611 | -0.4979106 | 3.265999 |
| job_level | 1 | 5 | 4 | 2.063946e+00 | 2.0 | 1.1069399 | 1.0243547 | 3.393717 |
| job_satisfaction | 1 | 4 | 3 | 2.728571e+00 | 3.0 | 1.1028461 | -0.3293355 | 1.777882 |
| monthly_income | 1009 | 19999 | 18990 | 6.502931e+03 | 4919.0 | 4707.9567831 | 1.3684185 | 3.997738 |
| monthly_rate | 2094 | 26999 | 24905 | 1.431310e+04 | 14235.5 | 7117.7860441 | 0.0185588 | 1.785094 |
| num_companies_worked | 0 | 9 | 9 | 2.693197e+00 | 2.0 | 2.4980090 | 1.0254234 | 3.006100 |
| percent_salary_hike | 11 | 25 | 14 | 1.520952e+01 | 14.0 | 3.6599377 | 0.8202899 | 2.696344 |
| performance_rating | 3 | 4 | 1 | 3.153742e+00 | 3.0 | 0.3608235 | 1.9199210 | 4.686097 |
| relationship_satisfaction | 1 | 4 | 3 | 2.712245e+00 | 3.0 | 1.0812089 | -0.3025185 | 1.815133 |
| standard_hours | 80 | 80 | 0 | 8.000000e+01 | 80.0 | 0.0000000 | NaN | NaN |
| stock_option_level | 0 | 3 | 3 | 7.938776e-01 | 1.0 | 0.8520767 | 0.9679913 | 3.359316 |
| total_working_years | 0 | 40 | 40 | 1.127959e+01 | 10.0 | 7.7807817 | 1.1160316 | 3.911070 |
| training_times_last_year | 0 | 6 | 6 | 2.799320e+00 | 3.0 | 1.2892706 | 0.5525596 | 3.489232 |
| work_life_balance | 1 | 4 | 3 | 2.761224e+00 | 3.0 | 0.7064758 | -0.5519164 | 3.413956 |
| years_at_company | 0 | 40 | 40 | 7.008163e+00 | 5.0 | 6.1265252 | 1.7627284 | 6.918057 |
| years_in_current_role | 0 | 18 | 18 | 4.229252e+00 | 3.0 | 3.6231370 | 0.9164268 | 3.471720 |
| years_since_last_promotion | 0 | 15 | 15 | 2.187755e+00 | 1.0 | 3.2224303 | 1.9822646 | 6.596318 |
| years_with_curr_manager | 0 | 17 | 17 | 4.123129e+00 | 3.0 | 3.5681361 | 0.8326003 | 3.166398 |
## attrition business_travel department education_field gender
## 2 3 3 6 2
## job_role marital_status over18 over_time
## 9 3 1 2
##
## No Yes
## 1233 237
# saves the current data set state
write.csv(df_hratt_cln, file = 'dataset/Human_Resources_clean.csv', row.names = FALSE)| Factor | Hypothesis |
|---|---|
| Age | People up to 40s tend to leave. |
| People 40+ tend not to leave. | |
| Education | People that have higher degree of education tend to leave. |
| People that have lower degree of education tend not to leave. | |
| Distance from home | People who live far from work tend to leave. |
| People who live near work tend not to leave. | |
| Marital status | Single people tend to leave. |
| Married people tend not to leave. | |
| Overtime | People who make overtime tend to leave. |
| People who don’t make overtime tend to stay. | |
| Performance rating | People who present higher performance ratings tend to leave. |
| People who present lower performance ratings tend to leave. | |
| People who present medium performance ratings tend not to leave. | |
| Job level and role | People who have lower job level tend to leave. |
| People who have medium and higher job level tend not to leave. | |
| People who weren’t promoted for a long time tend to leave. | |
| People who are in the current role for a long time tend to leave. | |
| Job involvement | People who feel less involved with the job tend to leave. |
| People who feel more involved with the job tend not to leave. | |
| Job satisfaction | People who feel less satisfied with the job tend to leave. |
| People who feel more satisfied with the job tend not to leave. | |
| Environment satisfaction | People who feel less satisfied with the environment tend to leave. |
| People who feel more satisfied with the environment tend not to leave. | |
| Work life balance | People who have lower work life balance tend to leave. |
| People who have higher work life balance tend not to leave. | |
| Working years | People who have worked professionally for more years tend not to leave. |
| People who have worked at the same company for more years tend not to leave. | |
| People who are job hoppers tend to leave. | |
| Payment | People who are making more money tend not to leave. |
| People who have lower salary hikes tend to leave. | |
| Training | People who didn’t receive training for long years tend to leave. |
| People who constantly received training tend not to leave. | |
| Current manager | People who have been working for the same manager for short years tend to leave. |
| People who have been working for the same manager for long years tend not to leave. | |
| People who have lower quality of relationship with the manager tend to leave. | |
| People who have higher quality of relationship with the manager tend not to leave. | |
| Business travel | People who travel more frequently tend to leave. |
| People who don’t travel tend to stay. | |
| People who travel less frequently tend to stay. | |
| Other questions that we need to answer | Which departments has more turnover? |
| Which education field has more turnover? |
| Category | Hypotheses |
|---|---|
| Age | H1. People up to 40s tend to leave. |
| Education | H2. People that have higher degree of education tend to leave more. |
| Distance from home | H3. People who live far from work tend to leave. |
| Marital status | H4. Single people tend to leave. |
| Overtime | H5. People who make overtime tend to leave more. |
| Performance rating | H6. People who present higher performance ratings tend to leave more. |
| H7. People who present lower performance ratings tend to leave more. | |
| Job level and role | H8. People who have lower job level tend to leave more. |
| H9. People who weren’t promoted for a long time tend to leave more. | |
| H10. People who are in the current role for a long time tend to leave more. | |
| Job involvement | H11. People who feel less involved with the job tend to leave more. |
| Job satisfaction | H12. People who feel less satisfied with the job tend to leave more. |
| Environment satisfaction | H13. People who feel less satisfied with the environment tend to leave more. |
| Work life balance | H14. People who have lower work life balance tend to leave more. |
| Working years | H15. People who professionally worked for more years tend to not leave. |
| H16. People who worked at the same company for more years tend not to leave. | |
| H17. People who are job hoppers tend to leave. | |
| Payment | H18. People who are making more money tend not to leave. |
| H19. People who have lower salary hikes tend to leave. | |
| Training | H20. People who didn’t receive training for long years tend to leave more. |
| Current manager | H21. People who have been working for the same manager for short years tend to leave more. |
| H22. People who have lower quality of relationship with the manager tend to leave more. | |
| Business travel | H23. People who travel more frequently tend to leave more. |
| Other questions | H24. Which departments have more turnover? |
| H25. Which education field has more turnover? |
# Loads data set
df_hratt <- read_csv("dataset/Human_Resources_clean.csv")## Rows: 1470 Columns: 35
## ── Column specification ────────────────────────────────────────────────────────
## Delimiter: ","
## chr (9): attrition, business_travel, department, education_field, gender, j...
## dbl (26): age, daily_rate, distance_from_home, education, employee_count, em...
##
## ℹ Use `spec()` to retrieve the full column specification for this data.
## ℹ Specify the column types or set `show_col_types = FALSE` to quiet this message.
In this step of my analysis, I’m going to remove certain columns from my dataset to simplify the data and focus on the most important information.
- Removing
over18andstandard_hours:
-
I have a column called
over18, which indicates whether employees are over 18 years old. Since all employees in my dataset are over 18, this column doesn’t provide any useful information. -
I also have a column called
standard_hours, which shows the standard working hours for employees. If every employee has the same standard hours, this column also doesn’t help me differentiate between them.
Therefore, I will remove these columns from the dataset to streamline the analysis and retain only the relevant information that can contribute to my insights about employee attrition.
- Dropping
employee_countandemployee_number:- The
employee_countcolumn shows the total number of employees, but since this number is the same for everyone, it doesn’t provide any unique insights for our analysis. - The
employee_numbercolumn is like an ID for each employee. While it identifies individuals, it doesn’t give us valuable information about their work or performance.
- The
By removing these columns, I can focus on the information that will help me analyze employee behavior and make better predictions about their actions.
## # A tibble: 1 × 31
## age attrition business_travel daily_rate department distance_from_home
## <dbl> <chr> <chr> <dbl> <chr> <dbl>
## 1 33 No Travel_Rarely 536 Sales 10
## # ℹ 25 more variables: education <dbl>, education_field <chr>,
## # environment_satisfaction <dbl>, gender <chr>, hourly_rate <dbl>,
## # job_involvement <dbl>, job_level <dbl>, job_role <chr>,
## # job_satisfaction <dbl>, marital_status <chr>, monthly_income <dbl>,
## # monthly_rate <dbl>, num_companies_worked <dbl>, over_time <chr>,
## # percent_salary_hike <dbl>, performance_rating <dbl>,
## # relationship_satisfaction <dbl>, stock_option_level <dbl>, …
When I examine my data, I notice that some categories are represented by numbers. For instance, education levels might be coded numerically (e.g., 1 for ‘Below College,’ 2 for ‘College,’ etc.). This numerical representation makes the data more challenging to interpret.
To enhance clarity, I will convert these numbers into descriptive labels. By replacing the numerical codes with clear names, my data will become easier to read and understand, ultimately improving the quality of my analysis.
# Convert education levels
df_hratt <- df_hratt %>%
mutate(education = recode(education,
`1` = "Below College",
`2` = "College",
`3` = "Bachelor",
`4` = "Master",
`5` = "Doctor"))
# Convert environment satisfaction levels
df_hratt <- df_hratt %>%
mutate(environment_satisfaction = recode(environment_satisfaction,
`1` = "Low",
`2` = "Medium",
`3` = "High",
`4` = "Very High"))
# Convert job involvement levels
df_hratt <- df_hratt %>%
mutate(job_involvement = recode(job_involvement,
`1` = "Low",
`2` = "Medium",
`3` = "High",
`4` = "Very High"))
# Convert job levels
df_hratt <- df_hratt %>%
mutate(job_level = recode(job_level,
`1` = "Junior",
`2` = "Mid",
`3` = "Senior",
`4` = "Manager",
`5` = "Director"))
# Convert job satisfaction levels
df_hratt <- df_hratt %>%
mutate(job_satisfaction = recode(job_satisfaction,
`1` = "Low",
`2` = "Medium",
`3` = "High",
`4` = "Very High"))
# Convert performance rating levels
df_hratt <- df_hratt %>%
mutate(performance_rating = recode(performance_rating,
`1` = "Low",
`2` = "Good",
`3` = "Excellent",
`4` = "Outstanding"))
# Convert relationship satisfaction levels
df_hratt <- df_hratt %>%
mutate(relationship_satisfaction = recode(relationship_satisfaction,
`1` = "Low",
`2` = "Medium",
`3` = "High",
`4` = "Very High"))
# Convert work life balance levels
df_hratt <- df_hratt %>%
mutate(work_life_balance = recode(work_life_balance,
`1` = "Bad",
`2` = "Good",
`3` = "Better",
`4` = "Best"))# Save the current data set state
write.csv(df_hratt, file = "dataset/Human_Resources_fe.csv", row.names = FALSE)df_hratt <- read.csv("dataset/Human_Resources_fe.csv")#selects only numerical attributes
num_attributes <- df_hratt %>% select(where(is.numeric))
#selects only categorical attributes
cat_attributes <- df_hratt %>% select(where(negate(is.numeric)))In this section, I will conduct a univariate analysis to explore the distribution and characteristics of my dataset. I will particularly focus on the target variable, as well as other numerical and categorical variables. This analysis will help me gain insights into the data and better understand the factors influencing employee attrition.
I will start by visualizing the target variable, attrition, using a
count plot to compare the number of employees who left the company
versus those who stayed. This visualization will help me understand the
distribution of attrition within the dataset. After plotting, I observe
that a significantly larger number of employees remained in the company
compared to those who left.
To quantify this, I will count how many employees left the company and how many stayed. I will display these numbers along with their percentages. This analysis reveals that most employees (83.88%) stayed, while only a small number (16.12%) left. Understanding these figures helps me gain a clearer perspective on the situation.
## Number of employees who left: 237
## This is equivalent to 16.12 % of the total employees.
## Number of employees who stayed: 1233
## This is equivalent to 83.88 % of the total employees.
Next, I will visualize the distribution of all numerical attributes in
the dataset using histograms. This step allows me to examine the
frequency distribution of numerical variables, helping to identify
patterns such as skewness, central tendencies, and potential outliers.
As we can see, except for the age variable, no other variable follows a normal distribution, and even age is not perfectly normal. Therefore, it’s better to leave the age variable as it is, rather than attempting normalization, which could lead to errors.
Finally, I will analyze the categorical variables through count plots
for each attribute. I will create subplots for each categorical
variable, enabling me to compare the counts across different categories
effectively. This step enhances my understanding of how various
categorical factors are distributed in the dataset.
##
## Call: glm(formula = attrition ~ age, family = binomial, data = df_hratt)
##
## Coefficients:
## (Intercept) age
## 0.20620 -0.05225
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1259 AIC: 1263
## [1] "There is a significant association between attrition and age."
This analysis looks at how age affects whether people leave or stay (attrition). The two variables used are attrition (Yes or No) and age (ranging from 18 to 60 years old). A logistic regression test was done to see if age is related to attrition. The result showed a p-value less than 0.05, which means that there is a significant association between age and attrition. Additionally, two bar charts were created to show how attrition is distributed across different age groups. The charts show that people under 40 have a higher rate of leaving (attrition) compared to those over 40.
Conclusion: The analysis supports the hypothesis H1, showing a clear association between age and attrition.
##
## Pearson's Chi-squared test
##
## data: table_e
## X-squared = 3.074, df = 4, p-value = 0.5455
## [1] "There is no significant association between attrition and education."
This analysis explores the association between education level and attrition. The two variables examined are attrition (Yes or No) and education (ranging from Below College to Doctorate). A Chi-square test was performed to determine if there is an association between education level and attrition. The result yielded a p-value greater than 0.05, which suggests that there is no significant association between education and attrition. Additionally, a bar chart was created to visualize the attrition rate across different education levels (Below College, College, Bachelor, Master, Doctor). The chart shows that the attrition rate is approximately 0.125 across all education levels.
Conclusion: The analysis does not support the hypothesis H2.
##
## Call: glm(formula = attrition ~ distance_from_home, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) distance_from_home
## -1.89005 0.02471
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1290 AIC: 1294
## [1] "There is a significant association between attrition and distance from home."
The bar chart displays the distribution of attrition (Yes/No) across different distances from home. From the chart, it can be observed that there is no clear trend indicating an increase in attrition as the distance from home increases. The proportions of employees leaving (shown in blue) do not exhibit a significant rise across the different distance categories.
Conclusion: Based on the Logistic Regression analysis (p-value < 0.05), there is a significant association between attrition and distance from home, suggesting that employees living farther from work are more likely to leave. However, the bar chart does not visually support a clear increase in attrition with distance, highlighting the need for further analysis to better understand this relationship.
##
## Pearson's Chi-squared test
##
## data: table_ms
## X-squared = 46.164, df = 2, p-value = 9.456e-11
## [1] "There is a significant association between attrition and marital status."
This analysis explores the association between marital status and attrition. The two variables examined are attrition (Yes or No) and marital status (Single, Married, Divorced). A Chi-square test was performed to determine if there is an association between marital status and attrition. The result yielded a p-value less than 0.05, which suggests that there is a significant association between marital status and attrition. Additionally, a bar chart was created to visualize the attrition rate across different marital statuses (Single, Married, Divorced). The chart shows that the attrition rate for single employees is higher compared to those who are married or divorced.
Conclusion: The analysis supports the hypothesis H4.
##
## Pearson's Chi-squared test with Yates' continuity correction
##
## data: table_ot
## X-squared = 87.564, df = 1, p-value < 2.2e-16
## [1] "There is a significant association between attrition and overtime."
This analysis explores the association between overtime and attrition. The two variables examined are overtime (Yes or No) and attrition (Yes or No). A Chi-square test was performed to determine if there is an association between overtime and attrition. The result indicated a significant association between the two variables. Additionally, a bar chart was created to visualize the attrition rate for employees who make overtime compared to those who do not. The chart shows that employees who make overtime have a higher attrition rate compared to those who do not.
Conclusion: The analysis supports the hypothesis H5
##
## Pearson's Chi-squared test with Yates' continuity correction
##
## data: table_pr
## X-squared = 0.00015475, df = 1, p-value = 0.9901
## [1] "There is no significant association between attrition and performance ratings."
This analysis examines the association between performance ratings and attrition, specifically testing whether employees with either higher or lower performance ratings have different rates of attrition. The two variables analyzed are performance rating (categorized as Outstanding and Excellent) and attrition (Yes or No). A Chi-square test was conducted to check for any association between performance ratings and attrition, and the results yielded a p-value greater than 0.05, indicating no statistically significant association. A bar chart was generated to visualize attrition rates across different performance ratings, showing similar attrition rates for both Outstanding and Excellent ratings, with no data available for Low and Good ratings.
Conclusion: The analysis does not support either hypothesis H6 or H7. There is no significant association between performance rating and attrition, as employees with both higher and lower ratings exhibit similar rates of attrition.
##
## Pearson's Chi-squared test
##
## data: table_jl
## X-squared = 72.529, df = 4, p-value = 6.635e-15
## [1] "There is a significant association between attrition and job level."
This analysis examines the association between job level and attrition, specifically testing whether employees at lower job levels tend to have higher rates of attrition. The two variables analyzed are job level (categorized as Junior, Mid, Senior, Manager, and Director) and attrition (Yes or No). A Chi-square test was conducted to determine if there is an association between job level and attrition, with results yielding a p-value less than 0.05, indicating a statistically significant association between these two variables. A bar chart was also created to show attrition rates across job levels. The chart indicates that Junior employees have the highest attrition rate, followed by Senior, Mid, Manager, and Director.
It’s noteworthy that although Mid-level employees show a lower attrition rate than Senior-level employees, the overall trend still aligns with the hypothesis. The general pattern observed is that employees in lower-level positions, particularly those at the Junior level, exhibit higher rates of attrition compared to those at higher levels.
Conclusion: The analysis supports hypothesis H8.
##
## Call: glm(formula = attrition ~ years_since_last_promotion, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) years_since_last_promotion
## -1.58703 -0.02979
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1297 AIC: 1301
## [1] "There is no significant association between attrition and years since last promotion."
This analysis examines the association between the length of time since an employee’s last promotion and their likelihood of attrition, testing whether employees who have not been promoted for a longer period are more likely to leave. The two variables analyzed are years_since_last_promotion and attrition (Yes or No). A Logistic regression test was conducted to assess if there is an association between these variables, yielding a p-value greater than 0.05, suggesting no statistically significant association between years since last promotion and attrition. Additionally, a bar chart was created to visualize attrition rates across different intervals of years since last promotion. The chart indicates no clear pattern linking the time since last promotion to attrition rates.
Conclusion: The analysis does not support hypothesis H9.
H10. People who are in the current role for long time tend to leave more. (Need for further analysis)
##
## Call: glm(formula = attrition ~ years_in_current_role, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) years_in_current_role
## -1.1184 -0.1463
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1256 AIC: 1260
## [1] "There is a significant association between attrition and years in current role."
This analysis examines whether employees who have remained in their current role for a longer duration are more likely to leave, testing the hypothesis that a prolonged time in the current role increases attrition likelihood. The two variables analyzed are years_in_current_role and attrition (Yes or No). A Logistic regression test was conducted, yielding a p-value less than 0.05, indicating a statistically significant association between years in the current role and attrition. However, a bar chart visualizing attrition rates across various lengths of time in the current role does not display a clear pattern or trend supporting this association.
Conclusion: The Logistic regression analysis suggests a statistically significant association between years in the current role and attrition. However, this finding is not supported by the bar chart, which shows no distinct relationship between length of time in the current role and attrition rates. This discrepancy indicates that while a statistically significant association exists, it is not consistently observed across all visualized data points.
##
## Pearson's Chi-squared test
##
## data: table_ji
## X-squared = 28.492, df = 3, p-value = 2.863e-06
## [1] "There is a significant association between attrition and job involvement."
This analysis explores the association between job involvement and attrition, testing the hypothesis that people with lower job involvement are more likely to leave. The two variables analyzed are attrition (Yes or No) and job_involvement (categorized as Low, Medium, High, Very High). A Chi-square test was conducted, showing a significant association between job involvement and attrition. The bar chart visualizing attrition rates across the different levels of job involvement indicates that the highest attrition rate is observed in the Low job involvement category, followed by Medium, High, and Very High involvement categories in descending order. This pattern suggests that lower job involvement may be associated with higher attrition rates.
Conclusion: The analysis supports hypothesis H11.
##
## Pearson's Chi-squared test
##
## data: table_js
## X-squared = 17.505, df = 3, p-value = 0.0005563
## [1] "There is a significant association between attrition and job satisfaction."
This analysis examines the association between job satisfaction and attrition, testing the hypothesis that people who are less satisfied with their job are more likely to leave. The two variables analyzed are attrition (Yes or No) and job_satisfaction (categorized as Low, Medium, High, Very High). A Chi-square test was conducted, revealing a significant association between job satisfaction and attrition. The bar chart visualizing attrition rates across different levels of job satisfaction shows that the highest attrition rate is observed in the Low job satisfaction category, followed by Medium, High, and Very High satisfaction categories in descending order. This suggests that lower job satisfaction may be associated with higher attrition rates.
Conclusion: The analysis supports hypothesis H12.
##
## Pearson's Chi-squared test
##
## data: table_es
## X-squared = 22.504, df = 3, p-value = 5.123e-05
## [1] "There is a significant association between attrition and environment satisfaction."
This analysis examines the association between environment satisfaction and attrition, testing the hypothesis that lower environment satisfaction leads to higher attrition. The two variables analyzed are attrition (Yes or No) and environment_satisfaction (Low, Medium, High, Very High). A Chi-square test showed a significant association between the two variables. The bar chart indicates the highest attrition rate in the Low satisfaction category, followed by Medium, and then High and Very High, with attrition rates for High and Very High being quite similar. Although the differences between Medium, High, and Very High are small, the trend still supports the hypothesis that lower satisfaction is linked to higher attrition.
Conclusion: The analysis supports hypothesis H13.
##
## Pearson's Chi-squared test
##
## data: table_wl
## X-squared = 16.325, df = 3, p-value = 0.0009726
## [1] "There is a significant association between attrition and work-life balance (Chi-square test)."
This analysis examines the association between work-life balance and attrition, testing the hypothesis that people with lower work-life balance are more likely to leave. The two variables analyzed are attrition (Yes or No) and work_life_balance (Bad, Good, Better, Best). A Chi-square test revealed a significant association between the two variables. The bar chart shows the highest attrition rate in the Bad work-life balance category, followed by similar rates in the Good and Best categories, and the lowest rate in the Better category. Despite the smaller differences between Good, Better, and Best, the trend still supports the hypothesis that lower work-life balance is associated with higher attrition.
Conclusion: The analysis supports hypothesis H14.
##
## Call: glm(formula = attrition ~ total_working_years, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) total_working_years
## -0.88306 -0.07773
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1248 AIC: 1252
## [1] "There is a significant association between attrition and total working years."
This analysis examines the association between total working years and attrition, testing the hypothesis that people with more professional experience are less likely to leave. The two variables analyzed are attrition (Yes or No) and total_working_years. A Logistic regression test showed a significant association between the variables. The bar chart shows that for most years of experience, attrition is low. However, at 40 years of experience, attrition increases sharply. This increase could be due to factors like retirement or career changes, but the overall trend still supports the hypothesis.
Conclusion: The analysis supports hypothesis H15.
##
## Call: glm(formula = attrition ~ years_at_company, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) years_at_company
## -1.15577 -0.08076
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1266 AIC: 1270
## [1] "There is a significant association between attrition and years at company."
This analysis examines the association between years at the company and attrition, testing the hypothesis that employees with more years at the company are less likely to leave. A Logistic regression test revealed a significant association between attrition (Yes or No) and years_at_company.
The bar chart shows a general decline in attrition up to 22 years, followed by a sharp increase at 23 years, then a drop to 0. After 31-33 years, attrition rises again before dropping to 0, with another spike at 40 years. These fluctuations could be related to factors like retirement or career changes, but overall, attrition tends to be lower for employees with more years at the company.
Conclusion: The analysis supports the hypothesis, although the spikes in attrition at certain years (23, 31-33, and 40) suggest other factors may influence attrition at these points.
##
## Call: glm(formula = attrition ~ num_companies_worked, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) num_companies_worked
## -1.77652 0.04565
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1296 AIC: 1300
## [1] "There is no significant association between attrition and the number of companies worked."
This analysis examines the association between the number of companies worked at and attrition, testing the hypothesis that job hoppers are more likely to leave. The two variables analyzed are attrition (Yes or No) and num_companies_worked. A Logistic regression test showed no significant association between the two variables. The bar chart shows no clear trend, with attrition rates remaining relatively stable across different numbers of companies worked. This lack of pattern suggests that the number of companies an employee has worked for does not significantly affect their likelihood of leaving.
Conclusion: The analysis does not support hypothesis H17.
##
## Call: glm(formula = attrition ~ hourly_rate, family = binomial, data = df_hratt)
##
## Coefficients:
## (Intercept) hourly_rate
## -1.5889155 -0.0009159
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1299 AIC: 1303
##
## Call: glm(formula = attrition ~ daily_rate, family = binomial, data = df_hratt)
##
## Coefficients:
## (Intercept) daily_rate
## -1.3495400 -0.0003834
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1294 AIC: 1298
##
## Call: glm(formula = attrition ~ monthly_rate, family = binomial, data = df_hratt)
##
## Coefficients:
## (Intercept) monthly_rate
## -1.733e+00 5.798e-06
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1298 AIC: 1302
## [1] "Hourly rate is not significantly associated with attrition."
## [1] "Daily rate is significantly associated with attrition. (Odds Ratio: 1 )"
## [1] "Monthly rate is not significantly associated with attrition."
This analysis examines the association between compensation and attrition, testing the hypothesis that people earning more money are less likely to leave. The variables analyzed are attrition (Yes or No), hourly_rate, daily_rate, and monthly_rate. A Logistic regression test showed that only daily_rate has a significant association with attrition. The boxplot further supports this finding, as it shows that for daily_rate, the no attrition group has a higher median compared to the yes attrition group. However, no clear pattern was observed for hourly_rate and monthly_rate in relation to attrition.
Conclusion: While the analysis suggests that daily_rate is associated with attrition, further investigation is needed to understand why hourly_rate and monthly_rate do not show similar patterns. Additional factors may be influencing attrition that were not captured in this analysis.
##
## Call: glm(formula = attrition ~ percent_salary_hike, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) percent_salary_hike
## -1.49563 -0.01012
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1298 AIC: 1302
## [1] "There is no significant association between attrition and percent_salary_hike."
This analysis examines the association between salary hike range and attrition, testing the hypothesis that people with shorter salary hike ranges are more likely to leave. The variables analyzed are attrition (Yes or No) and percent_salary_hike. A Logistic regression test showed no significant association between the two variables. The bar chart also does not reveal any clear relationship, with attrition rates being fairly consistent across different ranges of salary hikes.
Conclusion: The analysis does not support hypothesis H19.
##
## Call: glm(formula = attrition ~ training_times_last_year, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) training_times_last_year
## -1.2948 -0.1299
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1468 Residual
## Null Deviance: 1299
## Residual Deviance: 1293 AIC: 1297
## [1] "There is a significant association between attrition and training times last year."
This analysis examines the association between training received last year and attrition, testing the hypothesis that people who received less training tend to leave more. The variables analyzed are attrition (Yes or No) and training_times_last_year. A Logistic regression test showed a significant association between the two variables. However, the bar chart does not reveal a clear relationship, as attrition rates appear relatively stable across different levels of training received.
Conclusion: While the analysis indicates a significant association between training_times_last_year and attrition, the bar chart suggests that other factors may be influencing attrition. Further analysis could help clarify the relationship between these variables.
##
## Call: glm(formula = attrition ~ relationship_satisfaction, family = binomial,
## data = df_hratt)
##
## Coefficients:
## (Intercept) relationship_satisfactionLow
## -1.69833 0.35231
## relationship_satisfactionMedium relationship_satisfactionVery High
## -0.04797 -0.05087
##
## Degrees of Freedom: 1469 Total (i.e. Null); 1466 Residual
## Null Deviance: 1299
## Residual Deviance: 1294 AIC: 1302
## [1] "There is no significant association between relationship satisfaction and attrition."
This analysis examines the association between years with the current manager and attrition, testing the hypothesis that people who have been working with the same manager for fewer years tend to leave more. The variables analyzed are attrition (Yes or No) and years_with_curr_manager. A Logistic regression test showed no significant association between the two variables. The bar chart reveals that the density of attrition (Yes) generally decreases as years with the current manager increase. However, at 14 years, the density of attrition unexpectedly rises before dropping back to 0 in subsequent years.
Conclusion: The analysis does not support hypothesis H21
##
## Pearson's Chi-squared test
##
## data: contingency_table
## X-squared = 5.2411, df = 3, p-value = 0.155
## [1] "There is no significant association between relationship satisfaction and attrition."
This analysis examines the association between relationship satisfaction with the manager and attrition, testing the hypothesis that people with lower quality relationships with their manager tend to leave more. The variables analyzed are attrition (Yes or No) and relationship_satisfaction (Low, Medium, High, Very High). A Chi-square test showed no significant association between the two variables. The bar chart reveals that the highest attrition rate is in the Low relationship satisfaction category, followed by Medium, with High and Very High having similar, lower rates of attrition.
Conclusion: The analysis does not support hypothesis H22.
##
## Pearson's Chi-squared test
##
## data: contingency_table
## X-squared = 24.182, df = 2, p-value = 5.609e-06
## [1] "There is a significant association between business travel and attrition."
This analysis examines the association between business travel frequency and attrition, testing the hypothesis that people who travel more frequently tend to leave more. The variables analyzed are attrition (Yes or No) and business_travel (Non-Travel, Travel Rarely, Travel Frequently). A Chi-square test showed a significant association between the two variables. The bar chart indicates that the highest attrition rate is in the “Travel Frequently” category, followed by “Travel Rarely,” and the lowest attrition rate is in the “Non-Travel” category.
Conclusion: The analysis supports hypothesis H23
##
## Pearson's Chi-squared test
##
## data: contingency_table
## X-squared = 10.796, df = 2, p-value = 0.004526
## [1] "There is a significant association in attrition rates across departments."
This analysis examines which departments have higher turnover, testing the hypothesis that some departments experience more attrition than others. The variables analyzed are attrition (Yes or No) and department. A Chi-square test showed a significant association between the two variables. The bar chart indicates that the highest attrition rate is in the Sales department, followed by HR, and the lowest attrition rate is in the R&D department.
Conclusion: The analysis confirms that there is a significant association between department and attrition. The Sales department has the highest turnover, followed by HR, while the R&D department shows the lowest attrition rate.
## Warning in stats::chisq.test(x, y, ...): Chi-squared approximation may be
## incorrect
##
## Pearson's Chi-squared test
##
## data: contingency_table_education
## X-squared = 16.025, df = 5, p-value = 0.006774
## [1] "There is a significant association between education field and attrition."
This analysis examines which education field has higher turnover, testing the hypothesis that certain education fields experience more attrition. The variables analyzed are attrition (Yes or No) and education_field. A Chi-square test showed an association between the two variables; however, it was noted that the Chi-square test results may be unreliable. The bar chart indicates that the highest attrition rate is in the HR field, followed by Technical Degree, Marketing, and other fields.
Conclusion: The analysis suggests a potential association between education field and attrition, with the highest turnover in the HR field, followed by Technical Degree and Marketing. However, due to concerns about the reliability of the Chi-square results, further investigation is needed to confirm these findings.
| Hypothesis | Conclusion |
|---|---|
| H1: People up to 40s tend to leave | TRUE |
| H2: People with higher education tend to leave more | FALSE |
| H3: People who live far from work tend to leave | Need for further analysis |
| H4: Single people tend to leave more | TRUE |
| H5: People who work overtime tend to leave more | TRUE |
| H6: People with higher performance ratings tend to leave more | FALSE |
| H7: People with lower performance ratings tend to leave more | FALSE |
| H8: People with lower job levels tend to leave more | TRUE |
| H9: People not promoted for a long time tend to leave more | FALSE |
| H10: People in the same role for a long time tend to leave more | Need for further analysis |
| H11: People who feel less involved tend to leave more | TRUE |
| H12: People who feel less satisfied with the job tend to leave more | TRUE |
| H13: People who feel less satisfied with the environment tend to leave more | TRUE |
| H14: People with lower work-life balance tend to leave more | TRUE |
| H15: People with more professional years tend not to leave | TRUE |
| H16: People with more years in the company tend not to leave | TRUE |
| H17: People who are job hoppers tend to leave more | FALSE |
| H18: People with higher salaries tend not to leave | Need for further analysis |
| H19: People with shorter salary hike ranges tend to leave | FALSE |
| H20: People with less training last year tend to leave more | Need for further analysis |
| H21: People who have worked with the same manager for short years tend to leave more | FALSE |
| H22: People with lower manager relationship quality tend to leave more | FALSE |
| H23: People who travel frequently tend to leave more | FALSE |
| H24: Which department has more turnover? | Sales |
| H25: Which education field has more turnover? | Need for further analysis |
Summary of Hypotheses Testing Results
Analysis of the Data:
Correlation between age and other factors:
- Monthly income has a strong correlation with age (0.497), suggesting that older employees tend to have higher salaries. This could reflect that employees with more years of experience tend to reach higher salary levels.
- Total working years also shows a strong correlation with age (0.680), indicating that older employees often have more years of experience in the workforce.
- Years at company and years in current role also show high correlations with age, at 0.514 and 0.364, respectively. This suggests that older employees tend to stay longer at a company and often remain in the same role for longer periods.
Correlation between salary and other factors:
- Monthly income shows a strong correlation with total working years (0.773), implying that employees with more experience tend to have higher salaries.
- Monthly income also has a weak negative correlation with percent salary hike (-0.027), indicating that employees with higher salaries may not necessarily receive substantial salary increases in recent years.
Correlation between years of work experience and other factors:
- Total working years shows a strong correlation with years at company (0.628) and years in current role (0.460), indicating that employees with more years of experience tend to stay longer at a company and often in the same role.
Other factors such as the number of companies worked at and training hours:
- Number of companies worked at (0.149) has a weak correlation with monthly income, suggesting that employees who have worked at multiple companies do not necessarily earn higher salaries.
- Training hours last year show weak correlations with most other factors, indicating that training does not have a clear relationship with salary or years of experience.
Conclusion:
- Factors such as age, total working years, and tenure at the company have a significant impact on salary and career progression. Older employees with more experience and longer tenure at a company typically earn higher salaries.
- However, factors like the number of companies worked at or the number of training hours have weak relationships with other factors, suggesting they are not directly decisive in determining salary or career advancement.
- Employee training and development programs may need further evaluation to determine their impact on performance and salary growth.
## Var1 Var2 Freq
## 1 job_role job_role 1.087542612
## 2 department job_role 0.010109944
## 3 business_travel job_role 0.003956718
## 4 job_role department 0.010109944
## 5 department department 1.096719839
## 6 business_travel department 0.011330858
## 7 job_role business_travel 0.003956718
## 8 department business_travel 0.011330858
## 9 business_travel business_travel 0.692947167
The mutual information analysis between job_role, department, and business_travel shows:
-
job_role and department: The mutual information is very low (0.0186), indicating that job roles and departments are weakly related. There is little shared information between these two variables, suggesting that employees’ job roles are not strongly tied to specific departments.
-
job_role and business_travel: The mutual information is extremely low (0.0047), which means that job roles do not have much influence on business travel. Employees in different roles appear to travel for work at similar rates.
-
department and business_travel: The mutual information is also low (0.0127), suggesting that business travel is not significantly influenced by the department an employee works in. There is minimal shared information between these two variables.
In conclusion, job roles and departments are weakly related, and business travel seems to be mostly independent of both job roles and departments.
The exploratory data analysis (EDA) of employee attrition has uncovered critical trends that reveal both high retention rates (83.88%) and a focused set of factors contributing to the smaller, but significant, attrition group (16.12%). Through examining both numerical and categorical data, we found patterns that could help in identifying specific employee groups with higher likelihoods of leaving the company. These insights lay a foundation for targeted retention efforts and further, more focused analysis.
- Demographics and Salary: We found strong relationships between age, work experience, and monthly income. Older employees with more years in the workforce tend to earn higher salaries and are more likely to stay with the company. Additionally, older employees are often in longer-tenured positions, showing less job movement, which suggests a more stable relationship with the company.
- Job Satisfaction and Retention: Employees who report low satisfaction—whether due to work-life balance, involvement, job level, or the work environment—tend to leave more frequently. This suggests that improving job satisfaction could significantly enhance retention.
- Department-Specific Trends: The Sales department has a higher turnover rate compared to other departments. Additionally, job roles are closely linked to departments, indicating that specific roles within certain departments may have unique retention challenges.
- Career Progression and Training: Employees with longer tenure or who remain in the same role for extended periods tend to stay with the company. Training, however, does not show a strong relationship with retention or salary. This weak link suggests that training may not directly influence retention or career advancement, though it may have indirect benefits.
The identified patterns suggest several avenues for deeper analysis and action:
- Predictive Modeling: Factors such as age, job satisfaction, and job level could be key inputs for predicting attrition. Further modeling can use these insights to identify employees at higher risk of leaving.
- Targeted Retention Strategies: Specific departments, especially Sales, and employees with low satisfaction levels would benefit from focused retention strategies. Further analysis may reveal more targeted approaches within these groups.
- Optimizing Training Programs: Given the minimal impact of training on retention or salary, a closer look at how training aligns with employee satisfaction and performance could help refine these programs to add more value.
These insights from the EDA provide a solid understanding of employee attrition patterns and guide the next steps in formulating predictive models and strategic retention plans.
The analysis provides valuable insights into the factors influencing employee attrition and addresses the key questions guiding this project:
Are certain groups of employees more likely to leave than others?
Based on the analysis, specific groups exhibit a higher likelihood of attrition:
- Employees in the HR field show the highest turnover rates among all education fields.
- Employees aged under 40 are more prone to leave their jobs.
- Single employees are more likely to experience attrition compared to their married counterparts.
- Employees with lower job levels tend to leave at higher rates.
- Employees who report lower satisfaction with their jobs, environment, or work-life balance are more likely to leave.
What characteristics are commonly found among employees who decide to leave?
The analysis identified several common characteristics among employees who tend to leave:
- Lack of job involvement significantly correlates with higher attrition rates.
- Dissatisfaction with the work environment and job satisfaction are prominent factors driving attrition.
- Limited opportunities for promotion contribute to higher turnover.
- Employees remaining in the same role for extended periods are more likely to leave.
- Frequent overtime is a significant predictor of attrition.
- Lower quality relationships with their managers are associated with higher turnover rates.
Which factors can be managed or improved to help reduce attrition rates?
To mitigate attrition, organizations can focus on:
- Enhancing job satisfaction by fostering a supportive and engaging work culture.
- Promoting career growth opportunities to prevent stagnation in roles and provide clear advancement paths.
- Addressing work-life balance concerns by reducing excessive overtime and offering flexible work arrangements.
- Strengthening manager-employee relationships through targeted training programs and fostering open communication channels.
Additional Insights
- Strong correlations were observed between age and variables such as monthly income, total working years, and years in the company, indicating that older employees with more experience are generally less likely to leave.
- Job roles are closely linked to departments but have minimal impact on business travel, highlighting opportunities for role-specific interventions rather than department-wide strategies.
- Training hours and the number of companies worked at show weak correlations with key attrition factors, suggesting these are not primary drivers of turnover.
Reliability and Future Work
While the findings reveal meaningful trends, the reliability of some statistical tests, such as the Chi-square test for education fields, requires further investigation. Future research should focus on gathering more robust data and conducting additional tests to validate these conclusions.
By understanding and addressing these factors, organizations can develop effective strategies to retain valuable employees and reduce attrition rates.
While this project provides valuable insights into employee attrition through exploratory data analysis (EDA), there are several limitations that need to be considered
- Focus on Exploratory Data Analysis: The project primarily centers around EDA, which is an essential step in understanding the data. However, it does not extend beyond this phase to more advanced analyses or predictive modeling. Without further analysis, the findings may lack the depth necessary to draw strong, actionable conclusions that can directly inform HR strategies. -Need for Further Analysis: As the project concludes after the EDA phase, it does not dive into validating or refining the insights gained. For example, factors such as salary, training, and job distance need further analysis to fully explore their impact on attrition. Without this next step, the insights may remain underdeveloped and not as robust as they could be for practical use in HR decision-making.
- Data Quality: The dataset used in this project is idealized and sourced from GitHub for educational purposes. As such, it lacks real-world complexities and does not necessarily reflect the nuances of an actual company’s workforce. Consequently, while the project is beneficial for practicing data analysis techniques, the insights may not fully align with the realities of employee attrition in a corporate setting.
Therefore, this project serves more as a training exercise in data analysis rather than a fully actionable study.