Topic > The Bridge Between Employee Attrition and Customer Attrition: How It Links to Customer Relationship Management

Some scientists link employee attrition to customer attrition where a customer voluntarily terminates the services received from a 'agency. This article talks in detail about the customer lifetime value model and the employee value model, outlining their similarities and using the customer model to predict and describe employee attrition. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Few improvisations like strengthening the services provided to customers, improvement in offering discounts and benefits, strong and reliable customer service have strengthened customer-company relationships and leads to low customer churn rate. High competition has led customers to move away from their loyalty to the original company. Since it is too late once the customer switches to another competing company, proactive actions are required to identify any cases of customer churn and take essential steps to address the same. Machine learning and predictive models allow analysts to identify and extrapolate cases in such scenarios so that the company can then take preventative measures to retain its customers. Similar is the case with employee attrition where statistical models can be used to identify the cardinal factors that lead to attrition and give upper management leverage in deciding the next step. However, you also need to understand that the reasons for employee churn are more complex and involve many human components, while customer churn will mostly be associated with simple problems and shortcomings. In this research, an employee value model is created based on various attributes such as employee on-site and off-site duration, employee billing with clients, and the criticality of the project the employee was a part of. The rationale behind this model is to address the complexity of retaining all workers who are expected to leave, as it is not possible to retain all of them. Therefore, this new model determines the high-value workers in the entire attrition list and then emphasis is placed on those workers to retain them. In customer relationship management, similar models are developed, for example, a customer value model to identify customers with high prospects and offer them better services at lower prices to retain them. Explain characteristics such as: Lifetime customer value. Duration of service that explains customer abandonment over time. The discount factor that estimates the customer's value in terms of profit earned in the future that contributes to this model. Researchers used ANOVA to understand some factors and their effect on employee attrition. Two hypotheses were put forward and tested in the research. Once was related to health issues and how it might impact workers across different shifts in a company. The results strengthened the hypothesis and concluded that there is no statistically significant difference in health-related opinions among employees of various shifts. In other words, no significant difference was found between employees of the various shifts, in relation to health. Second, a Chi-square test of independence was performed between skill utilization and a worker's years of experience. It was found that experience had an impact on skill utilization, where workers' skills with high.