EMPLOYEE SATISFACTION, COMPENSATION, WORK–LIFE BALANCE, AND ORGANIZATIONAL FACTORS AS PREDICTORS OF EMPLOYEE ATTRITION AN EMPIRICAL HR ANALYTICS STUDY
Abstract
Organizations face a significant challenge from employee turnover as it drives up recruitment and training expenses, causes disruptions in their operations, and reduces their knowledge. This study employed an empirical HR analytics approach to look at employee satisfaction, compensation, work–life balance, and organizational factors as predictors of employee attrition. A quantitative and explanatory and predictive design was employed using IBM HR Analytics Employee Attrition and Performance dataset. There were 1470 employees and 35 variables in the dataset, with 237 of those employees leaving the organization and 1233 employees staying. Descriptive statistics, group-comparison tests, Spearman correlation, and binary logistic regression were used, along with predictive performance measures. Those who have suffered attrition indicated lower levels of job satisfaction, environment satisfaction, work-life balance, job involvement, monthly income, job level, and job tenure. Frequent business travel, selected job roles, single marital status, distance from home and time since promotion each had an impact on the likelihood of attrition over time. On the other hand, higher levels of satisfaction, job involvement, training, more stability of the job, and longer tenure with current managers lowered the likelihood of attrition. In logistic regression, the model showed a good accuracy of 76.4%, sensitivity of 64.8%, specificity of 78.6%, and an ROC-AUC value of 0.812, which is good predictive discrimination. The findings reveal that attrition is multifaceted and HR analytics can help in supporting effective employee-retention interventions in a timely, targeted and ethical manner.
Downloads
References
2.Aboobaker, Nimitha, Manoj Edward, and Zakkariya KA. 2019. “Workplace Spirituality, Employee Wellbeing and Intention to Stay: A Multi-Group Analysis of Teachers’ Career Choice.” International Journal of Educational Management 33(1):28–44.
3.Belete, A. K. 2018. “Turnover Intention Influencing Factors of Employees: An Empirical Work Review.” Journal of Entrepreneurship & Organization Management 7(3):1–7.
4.Boakye, Kwabena G., Bettye A. Apenteng, Mark D. Hanna, Linda Kimsey, William A. Mase, Samuel T. Opoku, Charles Owens, and Angela Peden. 2021. “The Impact of Interpersonal Support, Supervisory Support, and Employee Engagement on Employee Turnover Intentions: Differences between Financially Distressed and Highly Financially Distressed Hospitals.” Health Care Management Review 46(2):135–44.
5.Choi, Sungjoo. 2017. “Workforce Diversity and Job Satisfaction of the Majority and the Minority: Analyzing the Asymmetrical Effects of Relational Demography on Whites and Racial/Ethnic Minorities.” Review of Public Personnel Administration 37(1):84–107. doi:10.1177/0734371X15623617.
6.Deery, Margaret, and Leo Jago. 2015. “Revisiting Talent Management, Work-Life Balance and Retention Strategies.” International Journal of Contemporary Hospitality Management 27(3):453–72.
7.Dousin, Oscar, Ngan Collins, and Balvinder Kaur Kler. 2019. “Work-Life Balance, Employee Job Performance and Satisfaction among Doctors and Nurses in Malaysia.” International Journal of Human Resource Studies 9(4):306–19.
8.Gandy, Rob, Patricia Harrison, and Jeff Gold. 2018. “Talent Management in Higher Education: Is Turnover Relevant?” European Journal of Training and Development 42(9):597–610.
9.Hom, Peter W., Thomas W. Lee, Jason D. Shaw, and John P. Hausknecht. 2017. “One Hundred Years of Employee Turnover Theory and Research.” Journal of Applied Psychology 102(3):530.
10.Jaharuddin, Nor Siah, and Liyana Nadia Zainol. 2019. “The Impact of Work-Life Balance on Job Engagement and Turnover Intention.” The South East Asian Journal of Management 13(1):7.
11.Kakar, Abdul Samad, Nur Naha Abu Mansor, Roselina Ahmad Saufi, and Harcharanjit Singh. 2019. “Work-Life Balance Practices and Turnover Intention: The Mediating Role of Person-Organization Fit.” International Journal of Advanced and Applied Sciences 6(9):76–84.
12.Kelliher, Clare, Julia Richardson, and Galina Boiarintseva. 2019. “All of Work? All of Life? Reconceptualising Work‐life Balance for the 21st Century.” Human Resource Management Journal 29(2):97–112. doi:10.1111/1748-8583.12215.
13.Klindžić, Maja, and Matija Marić. 2019. “Flexible Work Arrangements and Organizational Performance–The Difference between Employee and Employer-Driven Practices.” Društvena Istraživanja 28(1):89–108.
14.Levenson, Alec. 2018. “Using Workforce Analytics to Improve Strategy Execution.” Human Resource Management 57(3):685–700. doi:10.1002/hrm.21850.
15.Li, Jun Justin, Mark A. Bonn, and Ben Haobin Ye. 2019. “Hotel Employee’s Artificial Intelligence and Robotics Awareness and Its Impact on Turnover Intention: The Moderating Roles of Perceived Organizational Support and Competitive Psychological Climate.” Tourism Management 73:172–81.
16.Marler, Janet H., and John W. Boudreau. 2017. “An Evidence-Based Review of HR Analytics.” The International Journal of Human Resource Management 28(1):3–26. doi:10.1080/09585192.2016.1244699.
17.Minbaeva, Dana B. 2018. “Building Credible Human Capital Analytics for Organizational Competitive Advantage.” Human Resource Management 57(3):701–13. doi:10.1002/hrm.21848.
18.Mittal, Sanjiv, Rajat Gera, and Dharminder Kumar Batra. 2015. “An Evaluation of an Integrated Perspective of Perceived Service Quality for Retail Banking Services in India.” International Journal of Bank Marketing 33(3):330–50.
19.Pandey, Dhruba Lal. 2019. “Job Hopping Tendency in Millenials.” NCC Journal 4(1):41–46.
20.Park, Jeongdoo, and Hyounae Kelly Min. 2020. “Turnover Intention in the Hospitality Industry: A Meta-Analysis.” International Journal of Hospitality Management 90:102599.
21.pavansubhash. 2017. “IBM HR Analytics Employee Attrition & Performance.” https://www.kaggle.com/datasets/pavansubhasht/ibm-hr-analytics-attrition-dataset.
22.Presbitero, Alfred, Banjo Roxas, and Doren Chadee. 2016. “Looking beyond HRM Practices in Enhancing Employee Retention in BPOs: Focus on Employee–Organisation Value Fit.” The International Journal of Human Resource Management 27(6):635–52. doi:10.1080/09585192.2015.1035306.
23.Rombaut, Evy, and Marie-Anne Guerry. 2020. “The Effectiveness of Employee Retention through an Uplift Modeling Approach.” International Journal of Manpower 41(8):1199–1220.
24.Rubenstein, Alex L., Marion B. Eberly, Thomas W. Lee, and Terence R. Mitchell. 2018. “Surveying the Forest: A Meta‐analysis, Moderator Investigation, and Future‐oriented Discussion of the Antecedents of Voluntary Employee Turnover.” Personnel Psychology 71(1):23–65. doi:10.1111/peps.12226.
25.Shanafelt, Tait, Joel Goh, and Christine Sinsky. 2017. “The Business Case for Investing in Physician Well-Being.” JAMA Internal Medicine 177(12):1826–32.
26.Sharma, Jyoti, and Rajib Lochan Dhar. 2016. “Factors Influencing Job Performance of Nursing Staff: Mediating Role of Affective Commitment.” Personnel Review 45(1):161–82.
27.Shen, Chuangang, Rui Liu, Jing Yang, Sanman Hu, and Peixu He. 2022. “How Family Supportive Supervisor Behaviors Enhance Employees’ Work-Family Enrichment? Thriving at Work as Mediator and Intrinsic Motivation as Moderator.” Psychology Research and Behavior Management Volume 15:3133–46. doi:10.2147/PRBM.S379000.
28.Sull, Donald, Charles Sull, and Ben Zweig. 2022. “Toxic Culture Is Driving the Great Resignation.” MIT Sloan Management Review. https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/.
29.Zito, Margherita, Lara Colombo, Laura Borgogni, Antonino Callea, Roberto Cenciotti, Emanuela Ingusci, and Claudio Giovanni Cortese. 2019. “The Nature of Job Crafting: Positive and Negative Relations with Job Satisfaction and Work-Family Conflict.” International Journal of Environmental Research and Public Health 16(7):1176. doi:10.3390/ijerph16071176.
This work is licensed under a Creative Commons Attribution 4.0 International License.
By submitting a manuscript to IJRDO – Journal of Business Management, the author(s) confirm that the work is original and does not infringe upon any existing copyrights or third-party rights.
Authors retain responsibility for the content of their work. In cases of proven ethical misconduct such as plagiarism or duplicate publication, the journal reserves the right to take appropriate action, which may include correction or retraction, in accordance with publication ethics.
