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Case Study 1 HR Analytics

ABC Corporation is addressing a 15% increase in employee turnover among mid-level software engineers by implementing HR Analytics to identify key factors contributing to this issue. The HR team collected data on 500 employees and found that low engagement scores, dissatisfaction with compensation, and lack of career growth were significant drivers of turnover. Interventions such as improving recognition programs, revisiting compensation strategies, and introducing career development plans were proposed to enhance employee retention.

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10 views

Case Study 1 HR Analytics

ABC Corporation is addressing a 15% increase in employee turnover among mid-level software engineers by implementing HR Analytics to identify key factors contributing to this issue. The HR team collected data on 500 employees and found that low engagement scores, dissatisfaction with compensation, and lack of career growth were significant drivers of turnover. Interventions such as improving recognition programs, revisiting compensation strategies, and introducing career development plans were proposed to enhance employee retention.

Uploaded by

pranshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Case Study:1 Introduction to HR Analytics

Background
ABC Corporation, a leading IT services firm, has been facing challenges with employee
turnover, especially among its mid-level software engineers. Over the past two years, the
turnover rate has increased by 15%, costing the company both in terms of productivity and
finances. Recruitment and training of new employees have proven to be time-consuming and
expensive, leading to increased operational costs.
In response, ABC Corporation’s HR team decided to adopt a data-driven approach using HR
Analytics to understand and solve the turnover issue. They gathered data from various
internal sources such as employee performance reviews, salary details, employee engagement
surveys, exit interviews, and demographic information (age, tenure, education, etc.).
The company used the following key HR metrics:
1. Turnover Rate: The percentage of employees who leave the company over a given
period.
2. Time to Hire: The amount of time taken to recruit and onboard a new employee.
3. Cost Per Hire: The cost involved in hiring a new employee (recruitment costs,
training costs, etc.).
4. Employee Engagement Score: An index based on employee feedback surveys
measuring overall job satisfaction and engagement.
5. Performance Ratings: Annual performance ratings provided by managers,
categorized as Excellent, Good, Average, or Poor.
The HR team hypothesized that several factors could be contributing to the turnover, such as
dissatisfaction with compensation, lack of career growth, poor work-life balance, and low
engagement.
HR Analytics Approach
1. Data Collection: The HR team collected data on 500 employees, which included
demographic data, engagement scores, performance ratings, compensation details, and
exit interviews.
2. Data Analysis: The data was analyzed using statistical methods and machine learning
algorithms. A predictive model was built to identify the key drivers of employee
turnover.
3. Insights:
o Employees with lower engagement scores were 2.5 times more likely to leave
within a year.
o Employees in the mid-level pay bracket were 35% more likely to leave due to
dissatisfaction with compensation.
o High-performing employees with limited career growth opportunities were
also more prone to leave, particularly after 3-5 years of service.
o Exit interviews revealed that 40% of the leaving employees cited "lack of
recognition" as a key reason for their departure.
Based on these findings, ABC Corporation’s HR team decided to implement a series of
interventions, including:
 Improving the employee recognition program.
 Revisiting the compensation strategy to better match market trends.
 Introducing career development plans for high-performing employees.
Questions
1. Data Collection and Measurement
o a) What types of data were collected in the case study, and how does each type
contribute to understanding employee turnover?
o b) How can employee engagement scores be measured, and why are they
important in predicting turnover?
2. Data Analysis and Interpretation
o a) Based on the findings, which factors seem to have the most impact on
employee turnover? Why might these factors be critical?
o b) How can the HR team use the results from predictive modeling to make
strategic HR decisions?
3. Interventions and Solutions
o a) What specific interventions were implemented to reduce turnover, and how
might these address the identified issues?
o b) What additional strategies could ABC Corporation employ to further reduce
turnover and improve employee retention?
4. Predictive Analytics in HR
o a) What role did predictive analytics play in this case study, and how did it
help in identifying turnover risk?
o b) What are some potential challenges in implementing predictive analytics in
HR, and how can these challenges be addressed?
5. Long-term Impact and Continuous Improvement
o a) How can ABC Corporation ensure that the interventions made are effective
in the long term?
o b) What role does continuous data collection and monitoring play in
improving employee retention?

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