Using AI to Predict Employee Turnover: A New Tool for Companies in Japan

In Japan, a new tool developed by researchers is set to help companies predict which employees are at risk of leaving the company. The tool analyzes data such as work attendance, personal information like age and gender, and information on former employees who have left the company. By using this data, the system can predict the resignation rate of new recruits.

Professor Naruhiko Shiratori from Tokyo City University, who worked on creating the tool with a local startup, explains that they are currently testing it in multiple companies to create models tailored to each of them. The results generated by the AI can be used by bosses to inform high-risk employees without revealing the raw data that the company is willing to provide support to help them navigate potential difficulties.

The researchers drew on a previous study that used AI to predict the profile of college students likely to drop out in order to develop this tool. In Japan, companies typically hire young graduates every April, but a significant percentage of these workers leave within the first few years on the job. This tool comes at a time when Japanese companies are increasingly focused on taking care of their young employees in light of an aging population and labor shortages in many sectors.

Ultimately, the AI tool offers bosses a way to proactively address employee turnover and potentially reduce the number of employees leaving the company. By using advanced technology to analyze data and predict outcomes, companies can better support their workforce and create a more stable and engaged work environment.