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Employee Attrition Prediction Using Machine Learning

The document discusses a study on predicting employee attrition using various machine learning algorithms, focusing on the IBM HR Analytics dataset. It evaluates multiple models, including Random Forest and Logistic Regression, to address challenges like data imbalance and feature importance, achieving high prediction accuracy. The research aims to enhance organizational strategies for employee retention through effective predictive analytics.

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0% found this document useful (0 votes)
39 views9 pages

Employee Attrition Prediction Using Machine Learning

The document discusses a study on predicting employee attrition using various machine learning algorithms, focusing on the IBM HR Analytics dataset. It evaluates multiple models, including Random Forest and Logistic Regression, to address challenges like data imbalance and feature importance, achieving high prediction accuracy. The research aims to enhance organizational strategies for employee retention through effective predictive analytics.

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5
Employee Attrition Prediction Using Machine
Learning
Ashalatha N S Bhumika P
3 Dept. of Information Science and Dept. of Information Science and
Engineering Engineering
JSS Academy Of Technical Education, JSS Academy Of Technical Education,
Bengaluru - 560060, INDIA Bengaluru - 560060, INDIA
ashalatha94@gmail.com Bhumikaprakash20@gmail.com

Abstract—Employee attrition is still a major problem in Logistic Regression and Multi-layer Perceptrons
organizational management as high turnover has an adverse (MLP) have high levels of prediction accuracy. [2-3].
impact on productivity, morale, and costs. In this paper,
6 supervised type of machine learning algorithms are used to However, issues regarding data imbalance (i.e., the
predict the employee attrition using the IBM HR Analytics majority of employees are not leaving), a high number
dataset with nine machine learning models tested both with and of attributes, and a need to make models interpretable
without dimensionality reduction and sampling techniques, still remain. Recent research has found solutions to
where Random Forest model accuracy was highest at 99.2%
when oversampling and Principal Component Analysis (PCA) is
those issues through the use of sampling (i.e., over-
applied. Feature importance is analyzed, and better approaches sampling and under-sampling techniques), and
for mitigating attrition are proposed. combined dimensional reduction (i.e., principal
component analysis - PCA) and ensemble learning
methods. [8-11]. The aim of this study is to build on
Keywords—Employee attrition, machine learning, HR that research by implementing and comparing multiple
10 analytics, random forest, PCA, oversampling, talent retention. ML classifiers Logistic Regression, Random Forest,
Support Vector Machines (SVM), Neural Networks
(MLP), Linear Discriminant Analysis (LDA) and other
I. INTRODUCTION ensemble learning to tackle data imbalance issues.

Employee attrition, or employees leaving a company


II. RELATED WORK
voluntarily or involuntarily, has become an
increasingly important problem for modern
organizations in the past few years. It can be disruptive The machine learning is used to predict employee
to workflow, lower workplace morale, increase attrition offers significant potential for enhancing
recruitment costs, increase training costs, and in some organizational strategies and minimizing human
cases, lead to the loss of institutional knowledge and resource expenses. Numerous studies have explored
core competencies. In a competitive, data-driven this domain, applying a wide array of models, datasets,
environment, employee retention has become more and analytics techniques with the shared goal of
strategic for organizations. [7][11]. Given the current identifying the most relevant features and developing
trend in the workplace of technology taking over roles robust predictive systems [1-4]. Recent studies have
previously occupied by employees both in terms of increasingly focused on ensemble learning to improve
data analytics and artificial intelligence companies the accuracy of prediction, rather than relying on a
have moved away from traditional heuristics utilized single model, ensemble methods combine multiple
by human resources (HR) departments and have classifiers such as Random Forest, Gradient Boosting,
utilized machine learning (ML)[8][11-12]. ML models and AdaBoost to leverage their complementary
are able to learn the patterns of terms of possible strengths. For example, researchers have proposed
attrition based on the HR data. This allows companies stacked ensemble frameworks with Logistic
to apply informed and, timely, personalized retention Regression as a meta-classifier, achieving significant
strategies aimed at reducing turnover rates. improvements in recall and F1 scores by aggregating
The attrition dataset has several variables which the strengths of base learners [6-9]. Beyond algorithm
describes the attrition behavior. The dataset contains choice, data preprocessing has emerged as a critical
attributes regarding age, income, overtime, role, step in model development. Methods such as missing
education, and work-life balance. Previous research value imputation, label encoding, and SMOTE
14 (Synthetic Minority Over-sampling Technique) for
exploring attrition behavior with this dataset has
7 indicated that supervised learning algorithms such as class balancing have demonstrated substantial impacts
Random Forest, Support Vector Machines (SVM), on model performance. In some cases, models saw

9 XXX-X-XXXX-XXXX-X/XX/$XX.00 ©20XX IEEE


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marked improvements after applying these techniques methods help make predictive models transparent,
[2], [5]. A compelling example is presented by Ma et allowing organizations to understand why an
al.[21], who introduced a feature selection employee might leave, not just who might leave [22],
optimization framework integrating filter, wrapper, [24]. Feature selection remains a crucial step in
and embedded methods. This approach reduced aligning data science with HR strategy. Across many
dimensionality by 60% and, when paired with studies including those by Ma et al. [21] and Nandal et
XGBoost and SMOTE, achieved an accuracy of al. [23] variables such as jobSatisfaction, overtime,
87.3%. Importantly, the study used SHAP values to stockOptionLevel, workLifeBalance, and
interpret model predictions, identifying overtime, careerProgression have emerged as consistently strong
monthly income, and job involvement as key predictors. Selecting and emphasizing these features
predictors findings that align closely with HR domain enhances not only prediction performance but also the
knowledge. Similarly, Arqawi et al. [22] compared practical utility of models in decision-making.
ML models with deep learning architectures for Additionally, recent research is moving beyond
attrition prediction. Using the same dataset, their prediction toward prescriptive analytics. Scholars like
experiments showed that Multilayer Perceptrons Latorre et al. [23] have proposed benefit-driven
(MLP) outperformed other classifiers, reaching an F1 retention policies, while others have suggested
score of 94.5%. They also underscored the importance targeted interventions for high-risk groups based on
of data preprocessing, notably balancing the dataset role, demographics, or department. These
and encoding categorical variables. Their results developments emphasize translating model insights
confirm that well-tuned deep learning models, when into actionable HR strategies, reinforcing the value of
combined with appropriate data handling, can offer predictive analytics as a management tool.
high levels of predictive accuracy. Another
comparative study by Nandal et al. [23] evaluated a III. METHODOLOGY
wide spectrum of models including Logistic
Regression, KNN, Naive Bayes, ensemble methods
(e.g., AdaBoost, Random Forest), and deep learning
architectures like FNN and CNN. Their best-
performing model, FNN, achieved an accuracy of
97.5%. Their analysis emphasized job satisfaction,
overtime, and job involvement as strong correlates of
attrition.

In a different yet related context, Park et al. [24]


examined turnover intention a precursor to actual
attrition among new employees, especially recent
college graduates. Using a large-scale dataset of over
12,000 participants and ML models like logistic
regression, XGBoost, and KNN, they found that job
13 Figure 1: Architecture Diagram for Employee Attrition
security, career growth potential, and personal-job fit
Prediction
were the most influential predictors. Unlike studies
that rely solely on static employment data, this work
incorporated psychological and motivational factors, The proposed model is an end-to-end employee
highlighting a promising direction for improving attrition prediction workflow that automates predicting
12 employee churn through the application of multiple
prediction systems with behavioral data. Another
common theme across the literature is the integration machine learning algorithms. The architecture of the
of PCA with ensemble models, a hybrid approach that system includes steps for data collection,
has consistently outperformed standalone classifiers preprocessing, sampling, feature selection, training the
across diverse datasets [22], [23]. Such combinations model, evaluation, and interpretation.The workflow
strike a balance between computational efficiency and starts with collecting data from the HR dataset
predictive power, particularly in high-dimensional HR available on IBM, which is then processed by
datasets. Increasingly, the field is also shifting toward removing irrelevant attributes like EmployeeNumber
model interpretability and visualization. Techniques and StandardHours. All categorical values are encoded
like Self-Organizing Maps (SOM) have been used while numerical attributes are standardized via z-score
alongside decision trees to create cluster-based normalization. To address class imbalance, the system
visualizations that are more accessible to HR incorporates both random oversampling and
managers. Similarly, SHAP and other explainable AI undersampling. Dimensionality reduction is optional

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and is performed through Principal Component undersampled data with PCA but a decrease in the
Analysis (PCA), which enables the system to retain accuracy.
only the most meaningful features while improving
model performance. C. Decision Tree(DT)
15 The Decision Tree (DT) algorithm is a
supervised learning model to analyse learnings to
1 classify items into a class. The DT works by splitting
the data into smaller subsets, based on either Gini
impurity or information gain, until one

D. Random Forest (RF)

Figure 2. Project Methodology

This methodology includes training and evaluation on


nine different supervised machine learning classification
models. These models included straightforward ones
2 such as Logistic Regression, Naive Bayes, Decision
1
Tree, AdaBoost, Support Vector Machine, Linear
Figure 3. Feature Importance w.r.t. Random Forest
Discriminant Analysis, Multilayer Perceptron and K-
with Oversampling
Nearest Neighbors.
2 From Fig. 3, the most important features were
These models were trained on six distinct datasets:
MonthlyIncome followed by OverTime and Age,
imbalanced, undersampled, oversampled, PCA,
while the least important features were
undersampled with PCA, and oversampled with PCA,
PerformanceRating, Gender and BusinessTravel as
and assessed their performance. To optimize the
observed.
performance, hyperparameter tuning through
RandomSearchCV and GridSearchCV is used. E. AdaBoost
The best hyperparameters were the
1 Furthermore, K-fold cross-validation with 5 folds were
1 learningrate is set to 1.0 and n estimators set to 1000.
implemented on the training set. To address model It is also the second best performing model with high
interpretability, suitable graphs and figures are utilized. accuracy, precision and F1 score values.
The attrition decision is a biased metric, so the
11 evaluation of the models is done using a comprehensive F. Support Vector Machine (SVM)
1
set of metrics: accuracy, precision, recall, and F1 score. The model trained on over sampled data
performed the best and the model trained on the
1 A. Logistic Regression(LR)
imbalanced data performed the worst.
The Logistic Regression model performed the
best for oversampling with PCA, the hyperparamters
G. Linear Discriminant Analysis (LDA)
were: C = 0.1, penalty = L2 and solver = liblinear. The
The performance of LDA model is for
logistic regression model, admitted standardised data,
oversampled data with PCA with hyperparameters:
1 so it had higher accuracy.
shrinkage as auto and solver as ’lsqr’. LDA had higher
accuracy and precision for imbalanced data but higher
B. Naive Bayes(NB)
recall and F1 scores were observed for balanced data.
The Gaussian Naive Bayes model exhibited
the best recall for imbalanced and undersampled data,
H. K-Nearest Neighbors (KNN)
58.6% and 77.6% respectively. The oversampled and
1 For oversampling with PCA and had
1 undersampled data with PCA exhibited an increase in
hyperparameters: leaf size as 1, number of neighbors
precision, recall and F1 scores in oversampled and

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as 17 and weights as distance, the KNN model TABLE I. CLASSIFICATION SCORES FOR IMBALANCED DATA

performed well.
Model Accuracy Precision F1score
1 This was the only unsupervised model and had the
1 highest recall as well as good accuracy, precision, F1 LR 0.875 0.753 0.472
Score. NB 0.787 0.394 0.471
DT 0.836 0.498 0.351
I. MultiLayer Perceptron (MLP) RF 0.862 0.841 0.296
With hyperparameters: logistic activation
AdaBoost 0.858 0.769 0.293
function, alpha as 0.05 and lbfs solver, the best
performance with highest metrics was obtained for SVM 0.867 0.741 0.406
oversampled data with PCA followed by imbalanced LDA 0.867 0.683 0.439
and undersampled data. KNN 0.848 0.771 0.157
MLP 0.866 0.677 0.447
IV. EXPERIMENTAL SETUP AND RESULTS

TABLE II. CLASSIFICATION SCORES FOR UNDERSAMPLED DATA


Environment: The models were implemented using WITH PCA
Python 3.11 in Jupyter Notebook. Libraries used
included Scikit-learn, Pandas, Numpy, Matplotlib,
Seaborn, and imbalanced-learn. Model Accuracy Precision F1score
1 LR 0.758 0.751 0.761
4 Dataset: The IBM HR Analytics Employee Attrition
dataset is used. It consists of 1470 rows and 35 NB 0.680 0.649 0.709
columns. DT 0.841 0.796 0.852
RF 0.992 0.986 0.992
AdaBoost 0.989 0.982 0.990
SVM 0.951 0.912 0.953
LDA 0.609 0.610 0.667
KNN 0.894 0.826 0.904
MLP 0.946 0.905 0.949

1 TABLE III. CLASSIFICATION SCORES FOR OVERSAMPLED DATA


WITH PCA

Model Accuracy Precision F1score


1 LR 0.758 0.751 0.761
Figure 5. Employee Attrition Distribution NB 0.680 0.649 0.709
DT 0.841 0.796 0.852
RF 0.992 0.986 0.992
The variables "Yes" and "No" represent the target value, AdaBoost 0.989 0.982 0.990
attrition, which is a category variable. As seen in Fig. 5,
the dataset is extremely unbalanced and has substantially SVM 0.951 0.912 0.953
more samples for "No" than "Yes." LDA 0.609 0.610 0.667
KNN 0.894 0.826 0.904
After the further steps like preprocessing, converting MLP 0.946 0.905 0.949
categorical to numerical values, Oversampling and
Undersampling, Feature scaling and Principal
Component Analysis (PCA), the following results are For the imbalanced data, the logistic regression
obtained. model achieved best (87.5%) classification accuracy.
The below mentioned tables 1, 2 and 3 summarizes
1 the results of several classification evaluation metrics In the undersampled data with PCA, Random
for each and every model with Balanced/ Imbalanced Forest model accomplished best metrics with 72.4 %
data. accuracy and F1 score and 72.6 % precision and recall.

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