AI Predictive Tool Forecasts Employee Attrition, Improving Retention Strategies

AI Predictive Tool Forecasts Employee Attrition, Improving Retention Strategies

Post by : Raina Mansoor

April 19, 2024 6:01 p.m. 5442

Employers grappling with concerns over employee turnover or seeking insights into the longevity of their new hires now have access to an innovative AI solution developed by Japanese researchers. This artificial intelligence tool, conceptualized by Professor Naruhiko Shiratori of Tokyo City University in collaboration with a startup based in Tokyo, aims to empower managers with predictive analytics to proactively address attrition issues within their workforce.

The AI tool operates by meticulously analyzing a myriad of data points related to employees within a company, ranging from attendance records to demographic information such as age and gender. Professor Shiratori, an expert in media education, underscores the tool's capacity to generate turnover models tailored to individual firms by assimilating data from departing employees or those on extended leaves.

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Once furnished with data on new recruits, the AI tool employs sophisticated algorithms to forecast the likelihood of individuals resigning, quantified in percentage points. "We are currently testing the AI tool with several companies, creating a model for each one," Professor Shiratori elucidated in an interview with AFP.

Employers can leverage these predictive insights to discreetly offer support to employees deemed at high risk of leaving their positions. Shiratori emphasizes the tactful approach, suggesting that companies can extend support to high-risk individuals without revealing raw statistics, which might be jarring. The intention is to proactively intervene and provide assistance to employees facing potential challenges, as flagged by the AI predictions.

The genesis of this AI tool traces back to previous research endeavors focused on predicting the characteristics of university students prone to dropping out. Building upon this foundation, the researchers are now poised to enhance the tool's capabilities further. Future iterations are slated to incorporate analyses of job interviews, alongside individual characteristics and personal histories, enabling the AI to recommend suitable assignments for new recruits.

The significance of such technological interventions is underscored by the context of Japan's labor landscape, where a substantial proportion of freshly minted graduates opt to leave their jobs within a short span. Government data indicates that approximately one in ten recruits exit their roles within a year, with nearly 30% departing within three years of employment.

In essence, the deployment of this AI tool represents a proactive stride towards enhancing employee retention strategies, offering employers nuanced insights to preemptively address turnover challenges and foster a more stable and engaged workforce.

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