Prediction of employee attrition in organisations using Garrett ranking and logistic regression

Abstract

Employee attrition is a crucial cost to an organisation and predicting turnover is at the leading needs of human resource. It critically impacts the business by imposing several costs like cost of business disruption, hiring, training new staff etc. Given these costs, this paper is intended to diagnose and rank the root causes of employee attrition and also statistically cheque their impact in driving attrition. Garrett ranking technique has been used to rank the drivers of attrition in order of their importance. Moreover, logistic regression has been applied to predict the variables behind attrition. Results of the analysis shows that time since last promotion, last performance rating, and age are the key predictors of attrition. It is expected that by looking at these attributes employee intent to leave the organisation can be assessed and necessary steps can be taken to save the loss.