ATTRITION ANALYSIS FOR SAMTECH INDUSTRIES
INTRODUCTION
Samtech, a prominent leader in the technology sector, is celebrated for its innovative solutions and cutting-edge products. Nevertheless, despite its market dominance and strong reputation, Samtech faces a significant challenge related to workforce stability.
PROBLEM STATEMENT:
Samtech is currently experiencing an attrition rate of 16%, significantly higher than the industry standard of 5%. This issue heavily impacts the Human Resources (HR) department and the entire workforce, leading to reduced morale, productivity, and organizational performance. Additionally, the high attrition rate escalates recruitment and training costs and disrupts workflow. By lowering the attrition rate to 5%, Samtech could achieve better employee retention, enhanced job satisfaction, and increased organizational stability, resulting in higher productivity, lower turnover costs, and a more positive work culture. Aligning with the industry standard would ultimately lead to greater overall success for Samtech.
This article will specifically examine the demographic of employees aged 24-28 to understand why they are leaving the organization at such high rates.
OBJECTIVES:
1. Assess Data Quality and Reliability: Conduct a comprehensive evaluation of the reliability, completeness, and potential biases of the available data sources to ensure the accuracy and integrity of the analysis results.
2. Apply Advanced Analytical Techniques: Utilize sophisticated data analysis methodologies, including descriptive statistics, to identify patterns and trends within the data, providing a deeper understanding of the factors influencing attrition.
3. Analyze Historical Data: Conduct an in-depth analysis of historical data to pinpoint key factors contributing to the high attrition rate, examining a diverse range of Human Resource variables, including demographic data and root cause analysis.
4. Generate Actionable Insights: Derive actionable insights from the analysis results to inform strategic decision-making processes aimed at reducing attrition rates and enhancing employee retention.
5. Formulate Recommendations: Develop strategic recommendations and intervention strategies based on the analysis insights, designed to mitigate attrition rates and improve overall employee retention, aligning with organizational goals.
DATA PREPARATION:
The data for this analysis was sourced from Poe.com and underwent several cleaning processes to ensure quality and reliability. Key steps in data preparation included:
1. Outlier Removal: Identified and eliminated outliers, especially in the year column, to prevent skewed analysis results.
2. Inconsistency Correction: Addressed inconsistencies in the department column to ensure uniformity and accuracy.
3. Data Transformation: Applied various techniques to standardize the dataset, including normalizing data formats, aggregating data where necessary, and ensuring all variables were correctly formatted for analysis.
4. Power Query Utilization: Utilized Power Query to efficiently perform data cleaning and transformation steps.
These measures were essential for refining the dataset to a state suitable for detailed analysis, ensuring the integrity and validity of the results.
DATA MODELLING
Fact Table
Fact Table: Central table containing key metrics such as:
Age
Attrition
Department ID
Distance from work
Employee ID
Employment type ID
Performance rate
Salary
Satisfaction rate
Dimension Tables
Distance_table: Distance Group, distance from work
Employment_type_table: Employment type, Employment type ID
Department_table: Department, department ID
Salary_table: Salary, Salary Group
Satisfaction_Performance_table: Satisfaction performance ID, Satisfaction performance rating
Yos_table (Years of Service): Total Years, Yos Group
Age_table: Age, Age Group
Key Points
One-to-many relationships: Connect dimension tables to the fact table.
Simplified Queries: Easier SQL queries for analysis.
Optimized for Reporting: Efficient for business intelligence tools.
Scalability: Handles large data volumes effectively.
This model facilitates comprehensive analysis of factors influencing employee attrition, aiding in data-driven decision-making to improve retention strategies.
FINDINGS:
Demography Analysis:
领英推荐
Analysis revealed that the 24-28 age group has the highest attrition rate at 64.2% within the demographic. This age-based disparity underscores the need for targeted retention strategies.
The Production department has the highest attrition rate in the organization, at 57.14%, exceeding that of all other departments.
Full-time workers have the highest attrition rate at 67.9% compared to other types of employment.
Among job levels, the Senior Level has the highest attrition rate at 60.7%, while the Mid-level has the lowest attrition rate at 3.57%.
ROOT CAUSE ANALYSIS:
As previously mentioned, this article will concentrate on the age group demographic to understand why employees aged 24-28 are departing from the organization at such high rates.
The chart indicates that employees in the 24-28 age group are more likely to commute from distant locations to their workplace
In the 24-28 age group, 55.56% expressed dissatisfaction with their job satisfaction rating, while 44.44% reported a neutral satisfaction level.
The analysis revealed that employees aged 24-28 consistently received the lowest salaries across the organization.
The scatter plot shows that employees aged 24-28 are receiving salaries between $1,900 and $3,000, highlighting a significant salary gap compared to other age groups within the organization.
The highlighted section of the scatter plot represents employees in the 24-28 age group. This visualization indicates that despite having longer tenure within the organization, this age group continues to receive lower salaries.
INSIGHTS
Data shows that employees aged 24-28 are more likely to commute from distant locations. Long commutes can lead to job dissatisfaction, stress, and poor work-life balance, making these employees more prone to seeking jobs closer to home.
The analysis indicates that employees in the 24-28 age group consistently receive the lowest salaries within the organization, ranging from $1,900 to $3,000. This significant salary gap compared to other age groups may cause dissatisfaction and a sense of undervaluation, prompting them to look for better-paying opportunities.
A notable portion of the 24-28 age group (55.56%) reported dissatisfaction with their job satisfaction rating, while 44.44% had a neutral satisfaction level. Low job satisfaction can significantly contribute to high attrition rates, as employees seek more fulfilling and rewarding work environments.
Despite having longer tenure within the organization, employees in the 24-28 age group continue to receive lower salaries. This situation can result in frustration and a feeling of stagnation in a low-paying role despite their loyalty and experience, driving them to seek better prospects.
RECOMMENDATION
Perform a thorough salary review to ensure that employees aged 24-28 are compensated fairly based on their experience, tenure, and industry standards. Implement regular salary increases and performance-based bonuses to acknowledge and reward the contributions of younger employees.
Create and implement programs aimed at improving job satisfaction, such as career development opportunities, mentorship programs, and clear advancement paths. Promote a positive work environment by encouraging open communication, recognizing employee achievements, and offering professional growth opportunities.
Provide flexible working arrangements, such as remote work options or adjustable hours, to alleviate the impact of long commutes. Consider offering transportation assistance or subsidies for employees who travel from distant locations.
I hope you found this attrition analysis valuable and informative! If you're interested in exploring the data further, please visit the interactive dashboard here: