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Employee Attrition Analysis Report

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Employee Attrition Analysis Report

Staff attrition is described as the evolutionary occurrence by which individuals quit

their employment and are not progressively replaced, including via resigning for personal

purposes or retiring. Some kinds of attrition are inevitable, such as when an employee retires or

relocates to another location. However, attrition may significantly impact the company's

financial line and culture at a certain point. Attrition is an unavoidable component of running a

business. An employee will wish to quit an organization for business or personal

circumstances at some point (Frye et al., 2018). This essay analyzes the various reasons for

attrition in a company that wishes to merge with another. The focal point of the study is to

outline the various ways in which talent retention is attained in the company once another

acquires it. Retention analysis answers these questions and is fundamental to human resource

management.
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Current Employee Demographics

Demographic Data

Figure 1: Demographic Data

Experience Sex and Age

Experience

Average Age

Sex

0 10 20 30 40 50 60

Column1 Female male

Figure 2: Marital Status

Experience Sex and Age

Divorced

Single

Married

0 5 10 15 20 25

Column1 Female male

These Two graphs were selected as they are critical factors determining the company's

attrition. Age and sex are vital factors in determining what age the respective genders are most

likely to retire from the company. Similarly, their marital status would play a key role in

determining their personal lives and how they impact their productivity and ability to sustain

their jobs for lengthy periods.

Attrition Analysis

Top Reason for Attrition

Inadequate Promotional Opportunities

Employees who intend to stay with a firm for a long time want opportunities for promotion.

For instance, a current hire may want to obtain additional responsibilities and advance through

the leadership ranks over his career. If an individual fails to advance after a few years of service,

he may grow disheartened (Davidson & Brindha, 2021). Employees who believe they are

trapped in the same role with little opportunity for progress may resign and explore possibilities

with other firms.

Ineffective Managers

Ineffective supervisors and managers frequently cause attrition. Employees who believe

their superiors do not appreciate them are more likely to be dissatisfied and resign than those

who have positive connections with their managers. Managers who fail to offer enough support

to employees or acknowledge their successes might lead to turnover. Furthermore, if managers

show bias or lack leadership qualities, they may fail to gain the respect of their colleagues and

foster job satisfaction.

Job Responsibilities

Employees do not always know what duties they might have to complete when they start

a new job, and job assignments might vary over time-based on the company's demands. If a

person finds his job dull or does not appreciate his responsibilities, he may hunt for another

employment. Furthermore, if employment duties are physically challenging or risky, employees

may leave in pursuit of healthier, less-demanding jobs.

Compensation

Employees provide labor intending to generate compensation and perks in exchange.

Companies that underpay employees or fail to give employment perks are more likely to lose

employees than organizations that offer competitive compensation packages. Large corporations

may have a remuneration benefit over small enterprises since they often have more negotiating

leverage, enabling them to minimize the burden of care benefits like healthcare coverage.

Poor Recognition

This concept is sometimes related to the initial point: supervisors are often too

preoccupied to pause and provide appreciation; they may be confused or frightened by an

excellent performance and grab praise for themselves. Individuals are neglected by their bosses

or not provided credit when it is and become demoralized, angry, and even resentful (Bale &

Pillay, 2021). Motivated personnel wants to make an excellent contribution to the firm, know

they are on the correct road and know that they'll be able to progress and do not need to go

unrecognized.
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Employee Job Retention

Figure 3: Job Satisfaction

Period Since Last Promotion

The organization has had 14 individuals leave the company within the specified period.

Of these individuals, only seven had zero years since their last promotion, and This situation is

because all of them had been in the company for less than five years. Only one individual has

had a record of fifteen years in their current position, having received a promotion far back (Fall,

2020). The remaining individuals range from one to four years since their last promotion.
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Figure 4: Last Promotion

Average Age of Exit

There is no consistency in the age of the employees that have left the company. The

youngest to exit the company did at the age of 24, and the oldest was 50 years. Three of them

were between the ages of 26 and 28, six of them were between the ages of 30 and 39, and the

remaining were above the age of 41. Ten individuals that exited the company were above the age

of thirty, making those above the age of 30 more likely to exit the company than any other age

group.

Six individuals had not stayed at the company for more than two years before their exit.

Four of them stayed for up to nine years, with most staying four or five years and not more. Only

one individual outdid them all by dedicating 22 years to the company. Most individuals leave the

company after about 3-4 years of employment.

Connection Between Training, Duration, and Exit from the Company

The available data suggests no direct correlation between the number of times an

employee was trained and the time spent in the company. It is because there are individuals who

received little to no training yet stayed for longer years than others who were trained more

frequently. Similarly, individuals who left the company were not influenced by the number of

training in the institution, which eliminates any direct connection as far as the available data

suggests.

Figure 5: Training Times

Retention

Likelihood of Current Employees to Exit the Company

Figure 6: Job Role Duration

After analyzing the data available, most of the employees exiting were male or single.

Which points out that marital status plays a critical role in employee exit. Secondly, job

satisfaction is no major deal as most of them were just as satisfied as others. There appears to be

an imbalance in the percentage salary hike of various individuals irrespective of the number of

years served in the company. Conclusively, with these factors and all others left constant, the rate
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of exiting the company is likely to increase as most employees fall within the category of those

who exit the company.

Employee Stability in the Organization

the company can sustain its employees through regular training and salary improvement,

that is, the many employees who have been in the company for over a decade and whose

performance is standard. This evaluation suggests that s the company grows, and it can sustain

most of its talents and productive employees. In addition, it will help increase the company's

value to a buyer as they would be buying reliable human resource management that is reliable

and effective to meet the company's needs.

Figure 7: Education and Salary

Actionable steps

Availability of New Future Prospects

They were checking in with staff members to understand what factors of their

employment are more appealing than others. It is essential to encourage them to observe

management or other senior employees in the organization who mentor them with essential
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skills. Opportunities for advancement and leadership responsibilities should be trumpeted into

their ears. Make a clear route for them to follow with tactical measures they may take to acquire

those responsibilities.

For a beginning professional, the most vital factor is career advancement. Job security is

not far behind, and it is easy to understand why. Many of these younger workers joining the

workforce experienced the economic downturn; consequently, career progression and security

have come to the top of their priority list.

Conducive Working Environment.

Employees who are fit and positive will work hard for the company. That may be why

most managers push to provide the best workplace well-being initiatives. Companies think that

employee health initiatives help save staff from feeling worn out. Various strategies urge

employees to live healthier lives (Bandrianto & Ekhsan, 2020). As part of a benefits program,

including a gym membership. Allow staff to leave early or arrive a bit late each week to attend

fitness classes session. Work with staff scheduling to ensure that individual welfare activities

balance business hours.

A conducive working environment allows employees to find a safe workplace space,

making the workplace a place they would want to be in most o the time. Most of them will not

leave the company as the switching cost would be high.

Appreciation and Motivation

Personnel is becoming increasingly challenging to keep as technology allows them access

to vast information. The corporate identity is on the front lines against competing organizations

that claim to treat their employees better than they do. Employees must understand that what

they are doing for the company is essential. If one does not show them how much they can add
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value, they will move somewhere that does (Kamalaveni et al., 2019). Make time during the day

to congratulate the staff for their efforts, reassure employees of what a fantastic job they are

performing, and emphasize that they are an integral part of the team.

Conclusion

In conclusion, the company's attrition rate is within the moderate level that should not

harm the company's ability to be valuable once acquired. It is thus essential for both companies

to create an organizational culture that would support and accommodate both companies for

maximum productivity.
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References

Badrianto, Y., & Ekhsan, M. (2020). Effect of Work Environment and Job Satisfaction on

Employee Performance in Pt. Nesinak Industries. Journal of Business, Management, &

Accounting, 2(1).

Bale, S., & Pillay, A. (2021). Impact of Employee Engagement on Performance at A Pump

Supplier. Int. J. Multi Discip. Sci, 4(1), 1.

https://scholar.archive.org/work/zr3xflq2s5g2vhzpif7gxqzzp4/access/wayback/https://

journal.stkipsingkawang.ac.id/index.php/IJ-MDS/article/download/1673/pdf

Davidson, R., & Brindha, D. G. (2021). Inspecting the Impact of Various Factors Influencing

Employee Attrition in the Hotel Industry. https://eprints.eudl.eu/id/eprint/3928/1/eai.7-6-

2021.2308612.pdf

Fall, M. B. (2020). Strategies Business Managers Use to Improve Employee

Performance (Doctoral Dissertation, Walden University).

Frye, A., Boomhower, C., Smith, M., Vitovsky, L., & Fabricant, S. (2018). Employee Attrition:

What Makes an Employee Quit?.  SMU Data Science Review, 1(1), 9.

https://scholar.smu.edu/cgi/viewcontent.cgi?article=1010&context=datasciencereview

Kamalaveni, M., Ramesh, S., & Vetrivel, T. (2019). A review of literature on employee

retention. International Journal of Innovative Research in Management Studies

(IJIRMS), 4(4), 1-10.

https://www.researchgate.net/profile/Kamalaveni-Ms/publication/335677274_A_REVIE

W_OF_LITERATURE_ON_EMPLOYEE_RETENTION/links/

5e0f1cc0299bf10bc38c9e37/A-REVIEW-OF-LITERATURE-ON-EMPLOYEE-

RETENTION.pdf