Simplified Novel Approach for Accurate Employee Churn Categorization using MCDM, De-Pareto Principle Approach, and Machine Learning

Abstract

Churning of employees from organizations is a serious problem. Turnover or churn of employees within an organization needs to be solved since it has negative impact on the organization. Manual detection of employee churn is quite difficult, so machine learning (ML) algorithms have been frequently used for employee churn detection as well as employee categorization according to turnover. Using Machine learning, only one study looks into the categorization of employees up to date.  A novel multi-criterion decision-making approach (MCDM) coupled with DE-PARETO principle has been proposed to categorize employees. This is referred to as SNEC scheme. An AHP-TOPSIS DE-PARETO PRINCIPLE model (AHPTOPDE) has been designed that uses 2-stage MCDM scheme for categorizing employees. In 1st stage, analytic hierarchy process (AHP) has been utilized for assigning relative weights for employee accomplishment factors. In second stage, TOPSIS has been used for expressing significance of employees for performing employee categorization. A simple 20-30-50 rule in DE PARETO principle has been applied to categorize employees into three major groups namely enthusiastic, behavioral and distressed employees.  Random forest algorithm is then applied as baseline algorithm to the proposed employee churn framework to predict class-wise employee churn which is tested on standard dataset of the (HRIS), the obtained results are evaluated with other ML methods. The Random Forest ML algorithm in SNEC scheme has similar or slightly better overall accuracy and MCC with significant less time complexity compared with that of ECPR scheme using CATBOOST algorithm.