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What are the applications of people/hr analytics in employee retention?
in Data Science by Diamond (55,332 points) | 47 views

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The cost to replace an employee could be over 200% of their annual salary, according to AmericanProgress.org. The true cost might even be higher due to training/onboarding, lost productivity, recruitment, and decreased morale among other employees. Losing an employee that’s in the top 1% of performers could mean the difference between growth and decline. For this reason, decreased attrition and improved employee engagement are often top priorities for HR departments. People analytics can help improve retention through a churn analysis that looks at data points like:

  • Current churn rate
  • Attrition by department
  • Attrition by estimated commute time
  • Similar attributes of employees with longer tenure
  • Similar attributes of employees who leave within 1 year
  • Onboarding experience
  • Survey data
  • Qualitative data such as employee interviews
  • Employee performance data to forecast future attrition


Through this data-driven approach, People analytics can illuminate the major causes of attrition, and new policies, along with training programs, can be put in place to help mitigate the problem. For example, data might show that high-aspiration employees are not challenged or employees are frustrated with a certain management style. Human resources analysis will reveal these issues, and then it will be up to leadership to act. It’s also possible to spot an at-risk employee before they leave so preemptive actions can be taken to resolve issues. For example, a once high-performer may not be as productive because he feels he or she is underpaid. An analysis of productivity alongside a comparison of market-value salaries can help spot this.

by Diamond (55,332 points)

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