HR Analytics
Introduction
In a company, the HR department is currently conducting personnel-related analysis to identify the employee turnover rate within the organization. Employee turnover is a challenge faced by HR managers and personnel within the corporate environment. This personnel data identification serves as a reference for the HR department to take the appropriate steps to retain employees, ensuring the organization continues to operate smoothly and profitably for the company.
Problem statement
The HR department has noticed a notable increase in employee resignations within a specific timeframe, resulting in a drop in the performance levels of multiple departments. To address this challenge, the HR department is undertaking an investigation to pinpoint the contributing factors and evaluate the individual performance of employees across various departments.
Who’s the user? The user for this task is HR manager
HR manager needs to :
- Determine to identify the factors contributing to this issue and assess the performance of employees within each department.
- Identify what problems need to be resolved and what points need to be improved to address the issue.
Goals
Build a dashboard for Employee analytics based on:
Age — to determine the productivity levels across different age groups to identify the most productive segment.
Gender, Job role, Employee Marital Status, Educational Field — to assess employee performance within each of these segments.
Creating a dashboard with appropriate visualizations and displaying relevant information as a reference for HR managers to make informed decisions.
Metrics
Some relevant metrics for this analysis include:
Turnover Rate : Calculating the turnover rate within each segment to assess retention challenges.
Performance Rating: Measuring and visualizing the performance scores of employees within each segment.
Over Time: Assessing work-life balance indicators to understand their impact on performance.
Employee Satisfaction: Measuring employee satisfaction and its impact on performance, which can be crucial for understanding the relationship between job satisfaction and productivity.
Monthly Income: Analyzing how monthly income correlates with employee performance to identify if higher income levels are associated with better productivity.
Promotion Rates: Analyzing the frequency of promotions for employees in various segment.
Scenario
Manager HR is looking to analyze the turnover rate within the organization over the past few periods due to multiple instances of employees resigning. They have requested that I, as one of the analysts in the HR department, create a visualization dashboard using the dataset available in the company’s personnel database. The visualization results will be used by the HR manager to make decisions regarding employee retention and to assess employee performance within each department.
Create Dashboard User Flow
Data Cleaning
Data cleaning is used to identify inconsistencies, invalid entries, and null values in the dataset. The data cleaning process is performed in a spreadsheet before the data is ready for use, aiming to eliminate distracting data that could affect the analysis results.
Dashboard
Dashboard Visualization
The HR analytics dashboard comprises various sections that provide information such as the number of Active Employees, Environmental Satisfaction, Performance Ratings, Turnover Counts, and Turnover Rates. These features can be configured across different categories such as Gender, Age, Marital Status, and Educational Field for more targeted analysis and insights.
Furthermore, there are two key metrics in the dashboard: Turnover Rate and Performance Rating, both of which serve as tools to assess employee performance within the company. The Turnover Rate metric displays the percentage of employees who have left the company within a specific period compared to the total number of employees, while the Performance Rating feature presents the distribution of employee performance ratings.
The benefits of both of these features are valuable tools for: evaluating employee performance, identifying issues, and ultimately enhancing overall employee performance to align with company goals.
Two additional features, Over Time Rate and Employee Satisfaction Rate, serves as a means to review the work-life balance of employees within the company. The goal of these metrics is to assess the work-life balance of employees. By utilizing these metrics, organizations can gain a comprehensive understanding of the work-life balance of their employees. This insight can inform policies and initiatives aimed at improving work-life balance, enhancing employee well-being, and ultimately fostering a more productive and content workforce.
The Over Time Rate and Employee Satisfaction Rate metrics offer several benefits to the company: improving work-life balance for employees, boosting employee productivity, and increasing employee retention.
Two final metrics, Monthly Income and Promotion Rate, are used to evaluate the extent to which the facilities provided by the company are sufficient to support employee productivity. By understanding and monitoring Monthly Income and Promotion Rate, companies can measure whether the existing facilities and policies are sufficient to maintain employee productivity, as well as to motivate and retain talent within the organization.
Insight
To gain insights, we formulate several questions related to the following HR analytics dashboard:
- How was the employee turnover?
- What are the impacts of the employees’ turnover?
Based on the dashboard, it can be identified that the employee turnover rate in the company is 16.12%. Out of the previous 1,470 employees, 237 employees have left the company. The majority of employees who left are male and fall within the age range of around 20 years old.
When viewed by each job role, it can be observed that the employees who have left the company are mostly from the sales representative job role, followed by laboratory technicians as the second highest.
Reviewing the provided metrics indicates that turnover is a serious issue for the company at the moment, with a high turnover rate of 16.12%. This can have several negative impacts on the company, including:
- Decreased Productivity: New employees often require time to adapt to their new work environment and responsibilities, leading to decreased productivity, especially if they lack the necessary skills and experience.
- High Costs: The company incurs expenses for recruiting and training new employees, including advertising costs, interview expenses, training costs, and onboarding expenses.
- Decreased Employee Morale: Employees who witness many of their colleagues leaving the company may feel insecure and dissatisfied with their jobs, resulting in lower morale and reduced productivity.
- Loss of Knowledge and Experience: Departing employees take their knowledge and experience with them, which can be detrimental to the company, particularly if these employees possess critical skills and expertise.
- How was the performance rating?
The average performance rating for employees in the company is 3.15. When categorized by job role, the highest performance ratings are found among managers, followed by manufacturing directors. Several factors contribute to the strong performance ratings in these two job roles, including:
- High Competence and Skills: Employees in these roles exhibit high competence and skills in their respective areas of responsibility.
- Effective Communication Skills: They possess strong communication skills, allowing them to convey ideas and expectations clearly to their teams.
- Strong Leadership: Managers, in particular, demonstrate strong leadership qualities, making them effective motivators and inspirers of their employees. They provide a clear vision and direction for their teams and encourage them to achieve their goals.
- In-Depth Business Understanding: Both job roles exhibit a deep understanding of the company’s business operations.
These factors collectively contribute to the high performance ratings observed for managers and manufacturing directors. A rating of 3 usually signifies that an employee has met the expectations of their supervisor. However, employees receiving a rating of 3 also have the potential to enhance their performance.
- How was the over time rate?
In summary, when viewed by job roles, research scientists have the highest percentage of employees working overtime, followed by sales representatives in the second position. High overtime in these roles can be attributed to various factors, including:
- Excessive Workload: Excessive workload is the most common cause of overtime. Employees may be required to work extra hours to complete tasks that cannot be finished during regular working hours.
- Shortage of Human Resources: A lack of human resources can also lead to overtime. If the company doesn’t have enough employees to handle the workload, existing employees may have to work overtime to compensate for the shortfall.
- Company Policies: Company policies can also contribute to overtime. For example, a company may have policies that require employees to complete all their tasks before leaving, even if it means working overtime.
- How was the employee satisfaction rate?
Employee satisfaction, or job satisfaction, reflects how content employees are with their work. The job roles with the highest employee satisfaction are manufacturing directors and healthcare representatives. High employee satisfaction can have positive effects on the company, including increased productivity, reduced turnover rates, and enhanced employee loyalty.
- How was the employee monthly income?
The highest monthly incomes come from the manager and research director job roles, while the lowest monthly income is associated with the sales representative job role. Additionally, monthly income can have both positive and negative impacts on employee performance ratings, with higher incomes generally boosting performance through financial security and resource access, and lower incomes potentially reducing motivation and causing stress. However, extremely high incomes can also lead to negative effects, such as demotivation or stress, among employees.
- How was the promotion rate?
Based on the dashboard, it can be identified that the employee promotion rate is 60.5% . Out of the previous 1,470 employees, 889 employees have been promoted by company. The majority of employees whom have been promoted are male and fall within the age range of around 30 years old.
For the promotion rate as a percentage, the age group with the highest promotion rate is in their 50s. This is because there are proportionally more employees promoted in this age group compared to the smaller total number of employees in this age group, resulting in a higher percentage value.
The job role of manager has the highest promotion rate overall, followed by the research director in the second position. This can be attributed to several factors:
- Managers have larger and more complex responsibilities, including team management and achieving company goals, requiring higher skills and experience.
- Managers often have opportunities for skill and knowledge development through training and professional development, enhancing their promotion prospects.
- Managers have significant contributions to the company’s success, which can increase their chances of promotion due to their vital role in the organization.
Conclusion
The analysis results indicate that a high turnover rate can have negative impacts on productivity, costs, employee morale, and knowledge loss. Performance assessments reveal that managers and manufacturing directors have the highest ratings, with factors such as competence, communication skills, leadership, and business understanding being prominent.
Overtime and employee satisfaction levels are crucial indicators for assessing the work-life balance of employees, while monthly income can influence motivation and stress levels. The promotion rate tends to be higher among individuals in their 50s, and managers have the highest promotion rates due to their greater responsibilities and development opportunities.
It is evident that the company needs to pay special attention to the job role of sales representatives. This job role has the highest turnover rate among all other job roles, likely influenced by high overtime. Additionally, the monthly income and promotion rates for this job role are among the lowest. This can lead employees in the sales representative role to feel they have limited opportunities for skill and career development, and that their financial rewards do not match their workload.
While sales representatives play a crucial role in generating revenue for the company, it is also one of the most challenging and demanding positions. Therefore, the company should consider efforts to improve the conditions and motivation of employees in the sales representative role to minimize turnover and enhance productivity and job satisfaction in this position.
For the dashboard of this project, you can view it at the following location:
If there are any shortcomings in the analysis and report, please feel free to provide feedback in order to improve the outcome of this project.
Thank you 🚀
