Predictive Analysis of Employee Loyalty: A Comparative Study Using Logistic Regression Model and Artificial Neural Network

Abstract

Employee turnover is a common issue in any company. A high turnover phenomenon becomes a big problem that will certainly affect the performance of the company. Therefore, measuring employee turnover can be helpful to employers to improve employee retention rates and give them a head start on turnover. A study to analyze for employee loyalty has been carried out by using Logistic Regression (LR) and Artificial Neural Networks (ANN) model. Response variables such as satisfaction level, number of projects, average monthly working hours, employment period, working accident, promotion in the last 5 years, department, and salary level are used to model the employee turnover. Parameters such as accuracy, precision, sensitivity, Kolmogorov-Smirnov statistic, and Mean Squared Error (MSE) are used to compare both models.