Building an Employee Churn Model in Python to Develop a Strategic Retention Plan

Employee turn-over (also known as "employee churn") is a costly problem for companies. The true cost of replacing an employee can often be quite large. A study by the Center for American Progress found that companies typically pay about one-fifth of an employee's salary to replace that employee, and the cost can significantly increase if executives or highest-paid employees are to be replaced. In other words, the cost of replacing employees for most employers remains significant. This is due to the amount of time spent to interview and find a replacement, sign-on bonuses, and the loss of productivity for several months while the new employee gets accustomed to the new role. Understanding why and when employees are most likely to leave can lead to actions to improve employee retention as well as possibly planning new hiring in advance.