Solving the Puzzle of Employee Attrition using Power BI

I'm a beginner in Power BI, and this is my first independent portfolio project using an online, fictitious dataset. This project proved very helpful to me in learning how to do end-to-end data analysis using Power BI, including data cleaning, data transformation, analysis, and visualisation. While there were numerous ways through which I analysed the data during the exploratory stage, I’ve presented only the key insights through the report. Hope you enjoy reading!

Here’s the link to view the full length of the Power BI project: https://github.com/shreyajain8593/PowerBI_AnalysingAttrition

Let's dive in!!

Data Description:

• Dataset link: https://github.com/Krishnkumar542/INX-Future-Inc-Employee-Performance-Analysis-using-Power-BI/blob/main/INX_Future_Inc_Employee_Performance_Data.xls
• The dataset was sourced from GitHub and contains information on 1200 employees affiliated with a fictitious organization named 'INX Future Incorporation.' Each employee's particulars are organized into individual rows, with numerous data points assigned to each employee.

Objective:

• The central question addressed in this project is: "What are the factors influencing attrition at INX Future Inc.?”

Key Findings

The younger workforce remains unafraid to quit: With an attrition rate of 35%, it's clear what doesn't work for Gen Z and the millennials.

The highest attrition rate, reaching 35%, is observed among the youngest workforce, Generation Z. With increasing age, the likelihood of attrition seems to decrease.

Not just age, there is also a consistent pattern of difference in the tenure and work experience at INX between active and departed employees. Across all age groups, departed employees had lesser working experience and a relatively smaller tenure at INX, indicating that even within the same age group, those with a lesser number of years behind them had a higher tendency to exit the organisation.

In fact, even on receiving the same salary hike, those from the younger age groups decided to quit the organisation. This means that other factors influencing the younger workforce to leave the organisation outweigh compensation factors.

One such factor I found in exploring this further is working overtime. Even though the levels of working overtime do not vary a lot across age groups, Gen Z seems to be the most affected by such conditions. About 60% of the workforce aged below 26 (Gen Z) that reported overtime decided to quit the organisation, which is much higher than the 26% among millennials and only 15% among Gen X. Working overtime appears to be a significant reason for Gen Z employees leaving the organization.

As education and job status go up, attrition goes down, hinting at overtime as a potential culprit for higher turnover at entry level.

1. The rate of attrition decreases as the education level increases. Those with a doctorate degree have the lowest rate of attrition, while those without any higher education qualification have the highest

A similar trend is observed across job levels — with an increase in job level, there is a decline in the attrition rate. Moreover, those in the entry-level cohort contribute the most to the overall attrition.

Further analysis has indicated that one potential contributing factor may be the higher likelihood of overtime work among employees at these lower job levels compared to their counterparts in higher positions.

Since attrition is higher amongst those working overtime, it becomes imperative to collect more data to understand why employees at lower levels are expected to work longer hours.

Gender doesn't impact attrition — except when it comes to managerial positions.

It was found that males experienced a slightly higher attrition rate of 16% compared to 13% among females. Males also contributed to about 60% of the organization’s total turnover.

For both males and females, a higher attrition rate is noted amongst single employees. While further investigation would be required to determine the reasons behind this trend, a possible reason could be that single employees may be more open to exploring new career opportunities and taking risks. They might be less tied down by family responsibilities and more inclined to seek better job offers or career advancements elsewhere.

Interestingly, at the highest job level - i.e. the 5th job level with individuals in managerial roles, attrition is observed only amongst females. While overall there is relatively less turnover at this level, it is concerning that it’s only the women managers quitting their jobs.

Managers could be the driving force behind employee attrition at this company!

A prominent difference in the time spent with the manager is observed between active and departed employees. Across all departments, employees who left the organisation spent considerably less number of years with their manager than active employees. This indicates that managers have a crucial role in determining their team members’ retention.

Recommendations:

I. Addressing overtime is critical and urgent due to its impact on attrition.

Immediate steps should be taken to alleviate the burden on employees. For instance, identifying the root causes of overtime is crucial. Are there specific managers who consistently require their employees to work overtime? Is there a shortage of resources or inadequate skills in managing workloads effectively? Interventions can then be designed based on these findings. Additionally, measures can be taken to relieve employees such as workload redistribution, improved resource allocation, or targeted training programs for managers to enable better management of resources.

If the pattern of increased overtime is consistently prevalent amongst entry-level employees, it becomes imperative to identify the reasons behind higher expectations from employees in this cohort to work overtime.

II. Provides employees with the opportunity to grow within the organization, reducing their inclination to seek external opportunities.

Since the younger, single workforce exhibits the highest attrition rates, it is possible that this group is more inclined towards career mobility and the flexibility to explore different career paths. Also, employees with less experience might be more eager to advance their careers quickly, explaining their increased tendency to exit the organization. To enhance the retention of employees in this demographic, the organization can focus on offering improved career growth opportunities. If employees perceive limited growth opportunities within INX, they may be more inclined to explore external options. This involves fostering an environment where employees can engage in open and candid discussions with their managers regarding their career aspirations. Providing transparent insights to employees about internal career prospects that align with their goals can be a valuable strategy. This approach provides employees with the opportunity to grow within the organization, reducing the inclination to seek external opportunities.

III. Conduct an organization-wide survey to understand what (and what isn't) motivating employees to stay

INX could also potentially gain valuable insights by conducting an organization-wide survey to identify factors that matter to employees across different age groups. The objective should extend beyond conducting exit interviews and include the implementation of "stay" interviews as well that help understand what motivates them to remain with the organization.

Further probe should be done to identify what is driving attrition among female managers, and whether there are any unique challenges faced or experienced by this group of individuals. One avenue of inquiry could revolve around identifying any unique leadership challenges that female managers face in their roles. These may encompass conflicting personal and professional commitments or instances of bias, such as gender-based stereotypes.

Conclusion

These findings underscore the need for tailored retention strategies that encompass career growth opportunities, support for entry-level employees, and measures to mitigate overtime demands. By addressing these factors, INX can proactively work towards nurturing a satisfied and engaged workforce, fostering long-term commitment, and ultimately reducing attrition.

Thank you for taking the time to read about my project :) Let's keep the conversation going! If you're as HR-geeky as I am and want to talk more about HR analytics, drop me a message!