Employee Churn Prediction relates to human resource understanding. It uses an algorithm to forecast the likelihood of employee turnover within a company. Employee churn, technically defined as employee departure, can be a product of personal factors, such as age and familial status, or due to issues with the company, such as low pay or poor communication. High employee turnover can be taxing for a company as it costs money and resources to hire and train replacements. Therefore, the objective of Employee Churn Prediction is to identify the operational flaws that cause employee churn and address them in order to increase employee satisfaction and decrease turnover. The analysis considers attrition rates, which are a measure of employee departure, and retention rates, or employee acquisition rates.
Who uses an Employee Churn Prediction?
All businesses that employ human capital should make use of an Employee Churn Prediction model. Consulting Companies conduct this analysis for their clients in order to help them improve company culture and standards. Their goal is to optimize employee retention and in order to be successful at it, they need to be able to determine which factors are galvanizing the churn. In the Legal Field, law firms use this prediction model to design career paths for their employees and set appropriate goals for each promotion. Doing so provides visibility and the prospect of internal mobility, encouraging employees to stay within the firm. Within Sales, companies maximize employee output through bonus incentives, which are tested and measured by the Employee Churn Prediction model.
