Employee turnover prediction and retention policies design: a case study

Machine learning algorithms are often showcased in customer churn study. Applications in fields such as telecommunication or product marketing (gaming, insurance etc..)(see [1],[2] for a recent review) are multiple. The implementation of these methods in Customer Relationship Management is becoming the new norm, as improving customer retention yields superior business results. We argue that this type of techniques can easily be applied to employee turnover. Note that the employee turnover can actually be subdivided in 3 buckets: involuntary turnover (induced by the company), voluntary turnover (employee resignation) and retirements. Retirement and an involuntary turnover are out of the scope of this paper.