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Showcase for a data-driven HR: Understand the business impact of employee’s attrition

Source | LinkedIn | Stefanie Becker

Authors: Dr. Stefanie Becker and Matthias Heinzmann, People Insights experts at SAP COO HR

When it comes to #PeopleAnalytics at SAP, we are not satisfied with only tracking numbers – this is just the foundation you need. We are diving deeper into identifying the reasons and drivers for a score (asking ‘Why the trends, patterns or numbers come about’) and by evaluating the business impact that is caused by a certain metric. We strongly believe that by providing such in-depth insights, HR will really make a difference to business strategy as well as to the experience of our employees.

In a recent initiative we achieved exactly this: We were able to identify key drivers and reasons that lead to attrition and show the monetary business impact of people leaving SAP.

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First step: Attrition driver and cluster analysis

For three pilot countries, we identified specific attrition drivers by fusing X-data (e.g. coming from engagement survey, or our exit interviews) and O-data (e.g. length of service, compensation components or diversity dimensions). In one of the counties, for instance, the attrition is mainly driven by the tenure of the employees. New employees with low tenure were more likely to terminate their working contract. That is not new insight because pure attrition numbers already show this trend. More interesting, for instance, were the results that employees that take vacations more regularly are more likely to stay. That could be related to a better work-life balance.

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