Role of HR and IT-To Reduce Employee Attrition

Employee Attrition is a result of several components including un-optimized compensation, unrealistic quotas, ineffective mentoring, career-path ambiguity, training inefficacy or just bad recruiting. Industries such as Banking and Finance, Healthcare, Hospitality and Technology are currently experiencing high attrition rates. Sales departments typically in almost all industries are faced with same issue of attrition. A certain amount of attrition is unavoidable and essentially unpredictable because you may never be able to get all the data that went into each decision. Nevertheless, usually there are some clear patterns in attrition. HR mangers or senior management executives, may know some apparent causes for attrition in their company. Most of them are reactive about attrition and do damage control after a separation notice has been given. This goes beyond some known causes, and subjective perspectives employees offer in exit interviews. In this paper, we propose that HR&IT should join hands together to perform targeted analytics which can automatically derive innovative and actionable insights from attrition data. These insights, along with data-driven predictive models, can be used to design effective plans for reducing attrition, improving retention, reducing attrition costs and mitigating attrition effects.