Workforce Retention Insights: Analyzing Factors Influencing Employee Departures

A mid-sized company is facing high employee attrition, especially in certain departments. Replacing employees is costly (recruitment, onboarding, training), and leadership wants to understand:

• Which factors contribute most to attrition?

  
  

• Can we predict which employees are at risk of leaving?

  
  

• What interventions (training, promotions, engagement programs) might reduce turnover?

  
  

This is a classic HR analytics problem where data-driven insights can save money and improve workforce stability.

Objectives

1. Identify key drivers of attrition

   
   

2. Predict at-risk employees

   
   

3. Recommend Interventions

   
   
   
   

Organizational Summary

Factors Contributing to Attrition

To uncover the underlying patterns behind employee attrition, we begin with a broad analysis of the characteristics of employees who have left the company, followed by a detailed examination of which variables show the strongest correlation with attrition.

Interpretation:

Sales and Marketing have the highest number of departures (44 each), accounting for around 24% and 21% of their respective departments.

The average tenure of employees who left the company is 7.6 years, indicating that turnover is not limited to new hires but includes experienced employees as well.

Engagement levels are fairly consistent across departments, averaging between 4.6 and 4.8, which is significantly lower than the overall average engagement score of 7.1.

Correlation Analysis

An analysis of the correlation between various workforce factors and employee departure was compiled. The results highlight which variables have the strongest relationships—either positive or negative—with the likelihood of leaving the organization.

Variable	Correlation Interpretation
Performance Rating (-72%)	This is the strongest negative correlation, meaning employees with lower performance ratings are much more likely to leave the company. Poor performers appear to be at significantly higher risk of attrition.
Engagement Score (-69%)	A strong negative relationship — employees with lower engagement levels are far more likely to leave. This suggests engagement is a key driver of retention.
Overtime Hours (28%)	A moderate positive correlation — employees working more overtime tend to leave more often. High workload or burnout may be contributing factors.
Absences (25%)	Another moderate positive correlation — higher absenteeism is linked to a higher likelihood of leaving. This could indicate disengagement or dissatisfaction.
Salary (-21%)	A modest negative correlation — employees with lower salaries are somewhat more likely to leave, indicating pay dissatisfaction plays a role, but not as strong as engagement or performance.

Key Takeaways:

Engagement and performance are the most powerful predictors of attrition — disengaged or underperforming employees are far more likely to leave.

Workload factors (overtime, absences) show moderate influence, suggesting stress and attendance issues contribute to turnover.

Structural factors (training, tenure, promotion) have minimal impact in this dataset.

Conclusion:

The study highlights that employee turnover within the organization is primarily driven by low engagement, low performance, and high workload. These findings suggest that retention efforts should focus less on structural factors like tenure or training hours, and more on strengthening the employee experience and support systems.

To effectively reduce turnover, the organization should prioritize initiatives that enhance engagement, such as recognition programs, regular manager check-ins, and flexible work arrangements. Additionally, targeted development and performance coaching can help underperforming employees improve and feel more supported in their roles. Addressing workload balance and burnout risks through resource planning and well-being programs will also be critical.

While compensation and promotions show weaker correlations with attrition, ensuring competitive pay and clear career progression paths can further reinforce retention efforts. Collectively, these strategies create a more engaged, supported, and motivated workforce—reducing the likelihood of employee departures and strengthening long-term organizational stability.