How can you prepare your turnover analysis by selecting the data that impact it?
Would you like to understand why you should conduct a turnover analysis in your organization and what data is important for this ? The first part of our study on the data you need to take into account when analyzing turnover has revealed the different facets of this phenomenon and gives you the employee characteristics and variables to take into account.
Let’s dive into the second part of our analysis. In this section, we’ll prepare our data for analysis. We will examine each variable and understand its influence on employee voluntary departure.
Keep in mind that the variable names represent our use case, but that you need to adapt them to your case.
Data preparation and exploratory turnover analysis
To better understand the factors influencing turnover within your organization, it’s essential to look at HR data analysis.
Thanks to the use of data analysis tools such as Python (which we will also use in the rest of the study), we can import these data and prepare our study.
What is exploratory data analysis?
Exploratory Data Analysis (EDA) is used to analyze and study data sets, then summarize their main characteristics, using visualization methods or statistical tests. It allows you to better understand the variables in a data set and the relationships between them, and thus determine the best way to manipulate data sources to get the answers you need.
First step of EDA: analysis of missing values
The first thing to do is to look at the missing values. These gaps can be revealing and need to be treated with care. We notice that more than 50% of the employee and manager score data are missing, so we decide to exclude these variables. For the other variables, missing values represent less than 4% of the dataset, so we simply delete the rows associated with them. This way of thinking is just one example, but it’s important to analyze the impact this kind of decision can have on the final results.
What is chi2 and why use it to analyze turnover data?
Now we want to know whether all the variables selected at the outset are relevant to our analysis. We will therefore apply a chi2 statistical test of independence to each of our variables individually.
We choose to use the chi2 test because it’s a test of independence to be used on categorical variables that shows whether one variable depends on another. Here, we want to know whether a variable has an influence on departures, i.e. whether departures are dependent on any variable. For example, in our case, if we apply the test to the age variable, we have seen that age has an influence on departures.
We can therefore model a contingency table :
This contingency table shows that departures are most common among younger employees.
(0-30 and 31-40 years): 42% + 35% of departures are in these age range. This is not the final result, but a complement to the results that may or may not be visible on the dashboard.
The chi2 test therefore enabled us to determine which variables to exclude from our study. In our case, we have deduced that the number of internal transfers and long-term leave have no impact on departures, so we will not take them into account in our study. Apart from these, we will use all other variables..
Conclusion on data preparation and exploratory turnover analysis
To conclude this second part,exploratory data analysis is proving to be a valuable tool for deciphering the complexities inherent in our dataset. This has enabled us to identify the variables that needs particular attention in the next steps of the study.
The chi2 test, applied systematically to all variables over an extended period, provides a rich and relevant dataset for the study of turnover.
SQORUS is your partner of choice in this process, providing expertise, innovation and personalized support. Contact us today to discuss your specific requirements.
In our third and final part, to be released on Thursday April 18, you’ll find out how to use PowerBI to easily visualize this turnover data and find solutions.
This tool will enable you to immediately grasp trends, identify significant turnover factors and make informed decisions to optimize payroll management.
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