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3-1 Milestone Two: Employee Attrition Analysis Report
MBA699
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Introduction
A large life sciences organization based in Midwest intends to implement an exit
strategy. The objective is to find a possible buyer for the organization. In order to identify a
potential acquirer, it is necessary to ascertain the value of the assets of the firm. One of the core
assets of the business is its human capital. Talented human capital can be regarded to be a
strategic asset for a company that can help it to achieve its business goals and objectives
(Sollosy et al., 2016). In the context of the business, the workforce has played an instrumental
role. The available human resource data has been analyzed in the report to arrive at the worth of
the organization. Some of the key elements that have been highlighted in the report include
workforce demographics, employee attrition, retention, and actionable steps that can be taken to
retain talent.
Current Employee Demographics
According to the available workforce data of the organization, there are currently 69
employees in total. Out of these employees, 61 % had the view that they were ‘very satisfied’ or
‘satisfied’ when it came to their current position. 22 % of the total current employees had been
working in the company for one year or lesser duration, whereas approximately 25 % of the
current workforce was serving the firm for over a decade or a longer period of time. The
demographic attributes of the present workforce of the organization include gender, age,
educational qualification, the status of marriage, and experience. A few graphical
representations have been presented that highlight the demographic details of the current staff of
the organization.
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Gender
Out of 69 employees, 41 of them are male, and the remaining 28 are female. Thus, in
terms of percentage, 59 % of the workforce is male, and the rest, 41 %, is female, which
highlights a stable diversity based on the gender attribute.
Marital Status
The chart presented above highlights the marital status of the staff members. A majority
of the staff members, i.e., 27 individuals (39 %), are married. 23 employees that constitute 33 %
are single, and the remaining 28 % are divorced. e
Age Range
Currently Divorced Currently Married Currently Single
19
27
23
COUNTE OFE MARITALE STATUS
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The age range of the current staff lies between 21 and 59 years. The average age of the
workforce is approximately 36 years. e
Educational Qualification
In the organization, a majority of the staff members, i.e., 32 %, currently have an
undergraduate degree. On the other hand, merely 4 % of the staff have a doctorate degree. The
organization also currently employs 29 % of individuals who possess a graduation degree.
The experience of the staff falls between the rage of 1 year and 32 years. There are also
a considerable number of employees that have a total of 6 or 10 years of experience.
Attrition Analysis
25%
4%
29%
10%
32%
COUNTE OFE EMPLOYEESE BASEDE ONE
EDUCATIONALE QUALIFICATION
Current Associate Degree
Current Doctorate
Current Graduate Degree
Current High School or
Equivalent
Current Undergraduate
Degree
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The data relating to the workforce has given a glimpse into the main reasons for
employee attrition within the organization. The five chief factors that have been identified are
the passage of a long period of time since promotion, poor job satisfaction, low level of work-
life balance, inadequate wages and remuneration, and diminished morale of the staff members. e
According to the available data, out of fourteen organizational personnel of the firm, the
time that they served spans between one year and 22 years. The average time that the former
employees spent working in the organization is approximately 1 to 4 years. e e
When it comes to the passage of time since the last promotion of the staff members, the
duration of time ranges between 0 to 2 years. The longest duration that was identified since the
last promotion ranged between 6 years and 15 years. It was mainly observed in the case of the
staff members with the longest tenure within the firm. Mostly, the employees that left the
organization were in their 30’s. However, the exact age range of the employees that left the
organization ranged between 24 years to 50 years.
It has been ascertained that there exists a correlation between the number of times an
employee receives training and development opportunities within the organization and the
duration for which they stay in the organization. There also existed a correlation between the
promotion of the staff members and the duration of their stay within the organization. A key
element that was observed from the available data is that the employees who newly joined the
firm were provided training and development opportunities. On the other hand, the employees
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who had already spent some time within the organization were not offered training and learning
opportunities. However, in case these employees had been recently promoted, then they were
given training.
According to the data 57 % of the former staff members of the organization said that
they were satisfied with the job that they were doing. 21.5 % of the former staff stated that they
were dissatisfied with their work and the remaining 21.5 % stated that they were ‘very satisfied’
with the work that they were doing within the organization.
Retention
When it comes to retention of the staff members within the organization, 39 % of the staff
members had stated that they were not satisfied when it came to their position. According to the
analysis relating to the attrition details, it was observed that both unsatisfied staff members, as
well as satisfied staff members, could leave the organization.
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For getting an in-depth insight into the retention situation within the firm, emphasis was laid on
the job satisfaction of the staff members. It was observed that 23 current staff members were
very satisfied while working in the organization. 19 current employees were satisfied in the
work setting, and 12 were ‘somewhat satisfied’. However, it must be noted that 15 current staff
members (around 22 %) were dissatisfied with the work setting, and thus, their possibility of
leaving the organization is high, which could increase the attrition rate. e
The data has been evaluated to identify the training opportunities that employees get within the
firm and the feelings that they have in terms of the available opportunities to grow and learn.
e
A comparison relating to the years of experience of the staff members within the business
undertaking has been carried out. According to the available data, a specific pattern can be
identified when it comes to the experience of the current employees and the experience of the
former employees. While the experience trend was consistent in the case of the former
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employees, the same cannot be stated for the current workforce since their total years of
experience varies significantly.
The stability of employees within the firm is decent. But there is an opportunity to
address the current issue relating to attrition. The employer must identify the exact reasons for
the staff turnover so that appropriate retention techniques can be introduced in place. The
employer must show that it values its human capital, and they must feel happy and satisfied
while working for the firm. Moreover, the employees must be assured that the firm will extend
support to them in the form of training d developmental opportunities, necessary resources, etc.,
so that they can sustain in their position and move up the professional ladder.
The current details relating to the attrition should not worry the potential buyer. This is
because attrition is common in every organization, even if it is considered to be one of the best
employers in the industry. The potential acquirer must conduct a detailed evaluation of the
support that is offered to the existing staff to ensure that it is worth retaining them. e
Actionable Steps
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A number of actional steps have been identified that the organization can take to prevent its
employees from leaving.
• One of the main steps involves conducting employee surveys to take their feedback and
opinions. The insight can help the business entity to understand whether the staff is
satisfied or not and whether additional support can be extended to them or not. e e e
• Another action that the company can take is to evaluate the training needs of the staff at
regular intervals. Such a step will ensure that the employees get the opportunity to learn
and grow, and they feel motivated to work for the firm. The training needs must be
identified by evaluating the performance of the staff members and identifying the exact
areas of improvement.
• The final action that the company must take involves the demonstration of appreciation
for the staff. The company must acknowledge the efforts and hard work of the staff by
introducing ‘Top employees of the month.’ It can also felicitate hard-working employees
so that they will be encouraged to improve their performance, and their possibility of
attrition can decline.
Conclusion
A thorough evaluation of the human resource dimension of the life sciences organization
has been carried out. It has been identified that the attrition of employees is an area that the firm
must focus upon. Even though the issue is not very dire, there is an opportunity to take suitable
steps so that talent can be retained within the firm. By taking such measures, the attractiveness
of the firm for a potential buyer can increase.
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References
Sollosy, M., McInerney, M., & Braun, C. K. (2016). Human Capital: A Strategic Asset Whose
Time Has Come to Be Recognized on Organizations' Financial Statements. Journal of
Corporate Accounting & Finance, 27(6), 19-27.
