Smart HR: Integrating Artificial Intelligence into Predictive Workforce Planning Models

Abstract

AI is helping businesses in HR by allowing them to base their workforce planning on data analysis. The study looks at the IBM HR Analytics Employee Attrition dataset to see how AI helps predict staff leaving, improve recruitment and boost retention. The research shows that individuals who earn less each month (mean = $4,787 vs. $6,832 for those retained) and are younger (mean = 33.6 vs. 37.5) leave the company more often, mainly in sales (20.63%). The model shows that job satisfaction (odds ratio = 0.765, p < 0.001) and work-life balance (odds ratio = 0.790, p = 0.020) greatly influence whether someone stays at their job. AI tools for predicting outcomes can help companies save 35% on attrition and recruit 40% more employees, but they still have to deal with ethical problems from algorithmic bias. The findings highlight that effective data and AI policies are important for success in workforce planning.