In a large department of a financial company, attracting, training and development of new employees costs five times as much as retaining existing employees. This is also called employee churn. The challenge for the company is to conduct targeted and measurable HR actions on specific groups of applicants and employees based on facts. The goal is to reduce the chance that they will leave the organization in the near future.
Approach and solution
With a short-cycle approach, we developed a churn prediction model based on so-called churn drivers. With the help of this approach, a churn model has been realized with which the company can predict, with an accuracy of more than 80%, which applicants and employees will leave in the future.
Insight into the most important churn drivers has resulted in a cost saving of more than 50% on recruitment, training and development.