Predicting Turnover: Japanese AI Tool Helps Companies Retain Valuable Young Employees

Japanese researchers have developed an artificial intelligence (AI) tool that can predict which employees are at risk of leaving a company. This tool, created by a professor from Tokyo City University in collaboration with a local startup, analyzes employee data ranging from work attendance to personal details like age and gender to create customized models for each company.

The AI predictions give managers a way to address potential difficulties the employee may be facing, rather than showing them raw data which may be surprising or unwelcome. The tool builds on previous research that used AI to predict which college students were likely to drop out. In Japan, companies typically hire new graduates each April, but a significant percentage leave their jobs within the first year, and even more after three years, according to government data. Japanese companies are increasingly focusing on supporting their young employees, especially given the country’s aging population and resulting labor shortages in key industries.

The AI tool can help companies provide targeted support to their employees in order to prevent them from quitting. Employee data is analyzed using this tool, including current employees as well as former employees who have left the company in the past. From this data, the system can predict the resignation rate of new hires as a percentage. The results provided by the tool can be used by managers to have conversations with high-risk employees about potential support the company can offer.

Professor Naruhiko Shiratori explains that this tool is designed to help companies retain their valuable employees. “By providing targeted support