Predicting HR Churn with Python and Machine Learning

Abstract

Employee turnover imposes a substantial financial burden, necessitating proactive retention strategies. The aim is to leverage HR analytics, specifically employing a systematic machine learning approach, to predict the likelihood of active employees leaving the company. Using a systematic approach for supervised classification, the study leverages data on former employees to predict the probability of current employees leaving. Factors such as recruitment costs, sign-on bonuses, and onboarding productivity loss are analysed to explain when and why employees are prone to leave. The project aims to empower companies to take pre-emptive measures for retention. Contributing to HR Analytics, it provides a methodological framework applicable to various machine learning problems, optimizing human resource management, and enhancing overall workforce stability. This research contributes not only to predicting turnover but also proposes policies and strategies derived from the model's results. By understanding the root causes and timing of employee departures, companies can proactively implement measures to mitigate turnover, thereby minimizing the associated financial and operational burdens.